Jimbo Fisher contract buyout contains no offset language following dismissal
On Sunday, Texas A&M bit the bullet and fired head coach Jimbo Fisher. The metaphorical bullet is the record $77 million+ buyout Texas A&M must pay Fisher. However, the ground-breaking number might not be the most jaw-dropping detail of the separation.
According to Fisher’s contract, he will receive the buyout money even if he gets another job. This condition is not standard. Here are the full details as laid out in Fisher’s contract with the Texas A&M:
“If the University terminates this Agreement without Cause prior to its expiration and in connection therewith terminates the employment of Coach, University agrees to pay to Coach liquidated damages in an amount equal to the total compensation that would have been paid to Coach for the remaining term of the Agreement, both Annual Compensation under Section 4. 1 and Supplemental Payment under Section 4.2 but excluding any incentives or other benefits.
“University shall pay twenty five percent (25%) of such amount in a lump sum within sixty (60) days of the effective date of termination of the Agreement, and the remaining balance shall be paid to Coach in equal annual payments beginning one hundred twenty (120) days after the effective date of the termination of this Agreement and continuing through the original end date of this Agreement, December 31, 2027.
“The Parties have bargained for and agreed to the foregoing liquidated damages provision, giving consideration to the fact that termination of this Agreement by the University without Cause prior to its expiration will result in damages that are impossible to ascertain or estimate, and the foregoing sums are mutually agreed on as compensation and not as a penalty. The University will make such payments after making appropriate deductions and withholding for taxes. Coach will not have a duty to mitigate University’s damages if this Agreement is terminated by University without Cause. Furthermore, University will not be entitled to any offset whatsoever in the event that Coach secures any subsequent employment.”
Texas A&M’s complex situation
In other words, Texas A&M isn’t avoiding this financial disaster. Previously, Gus Malzahn held the record buyout paid to a college coach at $21.45 million by Auburn. For reference, last season, 15 schools paid a collective $72 million to buy out their coaches’ respective contracts.
Fisher’s situation is unprecedented. In just under six years as head coach, Fisher coached the Aggies to a 45-25 record, including being 27-21 in SEC play over that time. With Fisher out, Texas A&M associate head coach Elijah Robinson is expected to serve as the interim head coach for the Aggies, according to ESPN’s Pete Thamel. Texas A&M has two regular season games remaining, plus a bowl game this winter.