The Buyout Negotiations: Brian Kelly files a lawsuit against LSU

The ongoing saga that’s played out since LSU fired Brian Kelly has brought another twist.

LSU is back in the headlines after new developments surfaced surrounding the school’s $54 million buyout owed to Kelly.

In a 48-page lawsuit obtained by ESPN, Kelly and his attorney are seeking “a declaratory judgment confirming that LSU’s termination of Coach Kelly is without cause”, which would prove Kelly is “entitled to receive the full liquidated damages provided for in (his contract).”

According to ESPN reports, the legal documents obtained reveal LSU has taken the position that the school never “formally terminated” Kelly and that the university is now looking to fire Kelly “for cause”, which in turn would prevent LSU from paying the full amount owed in the buyout.

Kelly’s attorneys were made aware of university’s position on Monday, which comes more than two weeks after Kelly and the school parted ways on Sunday, October 26.

The lawsuit, filed in the 19th Judicial District for the Parish of East Baton Rouge on Monday, reads: “LSU’s representatives had a call with Coach Kelly’s representatives, where LSU took the position that Coach Kelly had not been formally terminated and informed Coach Kelly’s representatives, for the very first time, that LSU believed grounds for termination for cause existed.”

There is no indication of what incident or behavior may have impacted LSU’s stance on the matter, or who Kelly may have spoken to from the university, per ESPN’s report.

The lawsuit focused on three points LSU made Kelly’s representation aware of on Monday: that Kelly had not been terminated, that former Athletics Director Scott Woodward did not have the authority to fire Kelly, and that university has grounds for termination “with cause.”

In Kelly’s contract, “for-cause” firing was described as the following: material and substantial NCAA rule violations, being convicted of a felony or any crime involving gambling, drugs or alcohol, engaging in serious misconduct which displays serious disrespect, or if he “constitutes moral turpitude.”

In the lawsuit, Kelly’s attorneys stated LSU had to inform Kelly of his “for cause” firing with seven days of his termination. Then, Kelly would have seven days to respond.

Neither of those instants occurred, the suit alleged.

“LSU has never claimed that Coach Kelly was terminated for cause and, prior to November 10, 2025, never asserted that he engaged in any conduct that would warrant such a termination,” the lawsuit reads, per ESPN. “To the contrary, LSU repeatedly confirmed, both publicly and to Coach Kelly, that the termination was due to the Team’s performance, not for cause.”

The lawsuit also references previously reported settlement attempts with Kelly by LSU, which includes an initial settlement number of $25 million and, later, $30 million.

Kelly and LSU Athletics Director Verge Ausberry have not publicly commented publicly on the buyout negotiations between the two parties.