Friday, May 18th, 2007 at 5:10 pm in Pac 10, USC, Cal, Stanford, Oregon, UCLA.
OK, so “new” is a relative term. Tedford agreed to the deal last winter, then it got rammed through the UC bureaucracy and approved by the Regents in March.
But the Hotline didn’t get its hands on the new deal, through a public records request, until just recently. (Had to wait for all the Ts to be crossed.)
And there’s some interesting stuff in there.
For instance, the extension agreed to last winter runs through 2013, but one year gets added on for every season that Cal wins at least nine games (and that includes the bowl game).
Tedford also received a $1 million signing bonus for agreeing to the extension.
Now, here’s how the new deal compares with the old:
*** Under the old deal, which expired after the 2009 season, Tedford received a base salary of no less than $167,500 annually.
Under the new deal, the base jumps to no less than $225,000.
*** Under the old deal, Tedford received a $1.332 million annual “talent fee.” (This is common in big coaching contracts because it allows universities to keep the base salary in check while still paying market rate for total compensation.)
Under the new deal, Tedford’s talent fee is $1.575 million, with a 50k bump if Cal plays in a BCS game.
For those scoring at home: That makes his new salary about $1.8 million annually, or $300,000 more than he got under the old deal.
And yes, $1.8 million annually is market rate for Tedford-caliber coaches.
(If you want someone to blame for that, start with the university presidents and chancellors, then move to conference commissioners, athletics directors, mega-donors … everyone but the players and the coaches, really.)
*** Under the old deal, Tedford had multiple bonus clauses:
150k for winning the national title; 100k for being national coach of the year; 75k for winning/tying for the Pac-10; 50k for playing in a BCS game (as an at-large team); 50k for being named Pac-10 coach of the year.
Under the new deal, the bonuses are essentially the same.
*** Under the old deal, Teford received a $500,000 bonus if he was the head coach in a renovated Memorial Stadium. (Like that was gonna happen by 2009.)
Under the new deal, Tedford gets a $225,000 bonus if he’s the head coach when the high-performance training center opens and a $250,000 bonus if he’s the head coach when Cal plays its first game in a renovated stadium.
Now, to the important clauses for Cal fans — the buyout clauses….
*** Under the old deal, if Tedford left Cal before the end of the contract, he owed the university $300,000 for every year left on the deal. (The buyout amount was chopped to $150,000 annually until the Memorial Stadium renovation broke ground.)
Under the new deal, the same dollars apply (the buyout drops by half until Cal occupies the high-performance training center).
*** Under the old deal, Tedford received a $2.5 million retention bonus if he stayed through the end of the contract (ie: if he coached in 2009).
Under the new deal, Tedford gets a $1 million retention bonus if he coaches through the 2008 season.
He gets an additional $1.5 million if he’s the head coach through the 2011 season, and he gets another $1 million if he’s the coach through the 2013 season.
In other words, the new deal is much, much more favorable to Tedford — it’s not nearly as back-loaded as the old one. All he has to do is stay two years and he gets an additional $1 million.
And yet, the buyout (the money he would owe the school if he left early) remains the same.
That’s what you call leverage ….
Now, Cal fans should not take the terms of the extension as a definite indication that Tedford’s is ready to bolt. (It wouldn’t surprise me if he stayed a few more years, and it wouldn’t surprise me if he left next winter.)
But clearly, he has far less (financial) incentive to stay through the duration of the new contract.