Documents reveal details of Steve Sarkisian's contract extension, including buyout numbers
Documents obtained by Inside Texas via open records request reveal that if the University of Texas wanted to move on from Steve Sarkisian before the end of the term of his recently-signed contract extension, the school would owe him 85 percent of his deal’s remaining balance.
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Sarkisian agreed to a new deal with Texas in January that gives him a significant pay raise. The agenda for the UT System Board of Regents’ meeting on February 21-22 revealed Sarkisian would be paid $10.3 million in 2024 under his new agreement, with annual $100,000 raises up to $10.9 million in 2030.
Should Sarkisian be let go after the 2024 season without cause, Texas would owe him $54,315,000.
If let go after the 2025 campaign, Texas would be on the hook for $45,475,000.
Following 2026, his buyout decreases to $36,550,000.
An early termination without cause after the 2027 season would result in a $27,540,000 buyout for Sarkisian.
A parting of ways after 2028 would mean Texas owes Sarkisian $18,445,000.
If Sarkisian and Texas ended their relationship after the 2029 season, Texas would owe $9,265,000.
Per Andrew Doughty of BetMGM, Sarkisian’s first contract said Texas would owe 70% of the remaining total of his deal. Details seen in the tweet below.
The signed extension states that if the school were to terminate Sarkisian’s employment without cause prior to December 31, 2026, Sarkisian will have to “minimize the payments due to him… and agrees to make reasonable efforts to obtain new football-related employment as long as the University has obligation to make such payments. If (Sarkisian) obtains new football-related employment during the Payout Period, the University shall be entitled to reduce on a dollar-for-dollar basis each month its liquidated damages’ obligation to (Sarkisian) by the amount of any post-termination football-related income that (Sarkisian) receives, earns, or is owed for such employment through the Payout Period.”
After January 1, 2027, Sarkisian won’t have such an obligation and Texas will have “no right to offset the payments due… from any subsequent employment that (Sarkisian) obtains.”
On the other side of things, if Sarkisian were to resign or terminate the deal for whatever reason in 2024, he would owe $10 million to UT. That drops to $6 million in 2025, $4 million in 2026, $3 million in 2027, $2 million in 2028 and 2029, and $1 million in 2030. The paragraph preceding those buyout numbers reads as such:
“The Parties agree that Head Coach has special, exceptional, and unique knowledge, skill, and ability as a football coach which, in addition to the continuing acquisition of coaching experience at the University as well as the University’s special need for continuity in its Program, render Head Coach’s services unique. Head Coach further recognizes that his promise to work for the University for the entire Term of this Agreement is an essential consideration in the University’s decision to employ him as Head Coach of the Program. Head Coach also recognizes that the University is making a highly valuable investment in his continued employment by entering into this Agreement and its investment would be lost or diminished were he to resign or otherwise terminate his employment as Head Football Coach with the University prior to the expiration of this Agreement”
Sarkisian will be paid 40 percent of his annual salary directly. The other 60 percent will be paid to Sark Enterprises, Inc.
Sarkisian is due a one-time special payment of $300,000 on or before April 1 of this year.
Sarkisian signed what is legally classified as a contract amendment at 8:51 p.m. Central Standard Time on January 12, 2024, per documents obtained by IT. Texas vice president and athletics director Chris Del Conte signed the agreement 47 minutes prior. University of Texas president Jay Hartzell affixed his signature to the amendment on January 13 at 10:50 a.m.
The extension was announced at 1:28 p.m. on January 13. The UT System Board of Regents approved the extension at their regularly scheduled February meeting.
Previous details of the contract had been released
Sarkisian will receive 20 hours of private aircraft time for personal use, as well as memberships in certain social clubs based on athletic department policy.
Sarkisian can receive up to $1.85 million annually in performance bonuses. He’ll receive $150,000 if he reaches the conference championship game and another $150,000 if he wins the game. He’ll get another $100,000 for making a bowl, with escalators up for every new level his team makes. That includes a bonus of up to $250,000 for making the College Football Playoff, up to $500,000 for making the CFP quarterfinal, up to $750,000 for making the CFP semifinal, up to $1,000,000 for making the national championship game, and his bonus total will be $1.25 million should the Longhorns win it all.
He could also add $200,000 in the form of one of the many coach of the year awards, and $100,000 should he win conference coach of the year.
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The Longhorns went 12-2 in 2023, winning the Big 12 and reaching the College Football Playoff. Sarkisian is 71-49 overall in 10 seasons as a head coach and 25-14 in three years at Texas.
