Rodriguez Buyout Case Carries Big Impacts

The Rich Rodriguez versus West Virginia squabble over $4 million has been cast as an old family battle like the Hatfields and McCoys. However, the outcome of the court room battle between the two gridiron entities will have far reaching implications. Its outcome will dictate what type of teeth buyout clauses have in the future and in doing so, could significantly impact coaches future compensation packages.

There are mixed feelings as to how well a school can hold a coach to a buyout. From reporting done by Tony Barnhart of the Atlanta Journal Constitution, Auburn clearly thinks their $6 million buyout with Tommy Tuberville can be enforced. Auburn's athletic director Jay Jacobs says, " We have made a substantial investment in the leadership of our football program and Coach Tuberville has done an incredible job. But the institution also has an obligation to protect that investment. That's why the buyout is there." Contrarily, Florida has set Urban Meyer's buyout at only $500,000, a rough estimate of what it would cost to deal with staff left behind by Meyer. Gator Athletic Director Jeremy Foley says the buyout figure could be as little as zero if Meyer brought his entire staff with him.

Speaking on limited legal knowledge, the issue involves the concepts of liquidated damages and "reasonable pre-estimate of cost". Legally, the buyout serves to liquidate damages caused by Rodriguez breaking the terms of his contract. That being the case, Rodriguez would only be on the hook for direct damages that his departure caused the university. It is likely that that value is well under the buyout amount of $4 million. However, if a judge determines that the $4 million is a "reasonable pre-estimate" of that cost, Rodriguez could be in trouble. Additionally, the burden of proof falls on the party breaking the contract - Rodriguez.

The case's decision should be interesting. Its outcome could impact negotiations between coach and school for many years to come. Per Barnhart reporting, Clemson Athletic Director Don Phillips says, "Coaches now have agents and their compensation packages have not only been elevated, they have become very sophisticated. Institutions have decided that if they are going to compensate coaches at that high a level, then the coach has to be willing to accept the same arrangement on his end in order to balance things out." If the rug is pulled out from under these buyout clauses, perhaps the inflation coaching salaries have undergone would take a turn.