A common clause in a professional or college sports coach contract is a buyout clause. This clause typically stipulates the amount of remuneration a coach will have to tender the college or professional team if he decides to change jobs prior to the expiration of the contract, and also lays out how much money the school or pro team will have to pay the coach if it wishes to terminate the coach prior to the natural end of the contract. Either side effectively breaches the contract by not adhering to its agreed upon term, but the buyout clause basically lays out the liquidated damages for taking such action. At times, the buyout clause, which is negotiated freely by the parties to the contract upon its execution, becomes heavily disputed based on previously unforeseen contingencies.
Case in point: Kent State is currently suing its former men’s basketball head coach Geno Ford for leaving Kent State prior to the natural end of the term of his agreement with the school. He has moved on to become the head coach of the Bradley University men’s basketball team. Read more “Kent State’s Buyout Clause And Tortious Interference Claims”