Jonathan Smith buyout cut in half after Alan Haller departure

Last week, Michigan State announced its decision to part ways with athletics director Alan Haller, effective May 11. The search is on for a replacement – and the move triggers a clause in head football coach Jonathan Smith’s contract.

Smith’s buyout will now be cut in half after Haller’s departure, per the terms sheet. The deal stated Smith had a $7 million buyout until Dec. 1, 2024, and that figure dropped to $6 million from Dec. 2, 2024 to Dec. 1, 2025.

However, there’s a clause underneath the chart with Smith’s buyout figures that states, “In the event Alan Haller is no longer serving as the Athletics Director at the time of termination, the above amount shall be reduced by 50%.” As a result, Smith’s buyout now sits at $3 million. The Detroit Free Press first pointed out the clause.

Smith is getting ready for his second season at Michigan State following an up-and-down first year after leaving Oregon State. The Spartans finished the 2024 campaign with a 5-7 overall record and a 3-6 mark in Big Ten play.

In his first season in East Lansing, Smith made $7.25 million, which ranked in the middle of the pack among Big Ten coaches, according to the On3 Coach Salaries Index. That number moved up to $7.35 million Feb. 1, 2025.

Jonathan Smith was one of Haller’s first major hires at Michigan State after taking over at his alma mater in September 2021. Now, the school is searching for a new AD, with TurnkeyZRG coming in to lead the search for a full-time replacement. Men’s basketball coach Tom Izzo and current deputy athletics director Jennifer Smith will serve as co-interim athletics directors in the meantime, and On3’s Pete Nakos had an update on where the search stands.

Haller played football at Michigan State from 1988-91 and became a fifth-round pick in the 1992 NFL Draft. After a brief NFL career, he returned to East Lansing as a police officer for the MSU Police Department before joining the athletic department in 2010 as the school’s associate athletics director.

In a statement released shortly after the announcement, Haller specifically called out people “in positions of significant influence” at the university. That said, he reflected on his record and looked back on his time at the school both as a student and an employee.

“Throughout my career, I have consistently spoken up when I believed something was not right – always guided by a commitment to protect students and uphold the best interests of the University,” Haller wrote, in part. “At times, those decisions have not aligned with individuals in positions of significant influence. Although I am deeply saddened to be leaving the University, I am proud of my record and the lasting impact of my work. As I continue to process this decision, I want to express my heartfelt gratitude to the Spartan community for their unwavering support.”