Paying Big Bucks for Reputations and Aspirations, not Performance

It is a story only as old as the trend in college football to pay exorbitant salaries to head coaches….not for actual performance, but for good intentions. Personally, I believe most college football coaches are seriously overpaid. These days, an abject coaching failure can walk away with millions for doing a poor job…set for life for less than acceptable performance. Universities and colleges are paying dearly for reputations and aspirations, not performance….and there are no guarantees, no three year warranties.

This is my Loss-based Pay System for head coaches. While I originated this system in 1985, this more current example starts a college head coach at a once exorbitant $5M per annum. Of course, the salary base and the penalties can be adjusted up or down, depending on negotiations. If the salary is 50% higher, the penalties should be accordingly increased. Do keep in mind that a coach trying to negotiate decreases in the penalties for losses intends to lose. That is, they lack confidence in their own ability to create a winning program.

They get nothing for winning, nothing for whining. After all, they are being paid the big bucks to win, not to lose; so, they get penalized for losing. Trying hard does not count. Improving only counts a little. If the team loses…the coach loses.

• Non-conference loss penalties are less than conference loss penalties. Also the pre-game ratings and the magnitude of loss are considered. Non-conference losses typically have a lesser impact on recruiting and program image, and none on conference standings; however, there are non-conference games of particular stature (i.e. Notre Dame vs USC; Florida vs Florida State; Oklahoma vs Alabama, etc.). For such games a “special” penalty can and should be implemented. Such games affect program image and have definite recruiting impact.
• Home-loss penalties are greater than away-loss penalty, also the pre-game ratings and the magnitude of loss are considered. This is a “fill the seats” issue, as well as a credibility issue. Fans do not like losing at home. Visiting recruits can’t be too impressed with home losses either.
• Magnitude of loss penalties incorporated for all losses. Example: A 3 point loss incurs a lower penalty than a 14 point loss
• Game-time rankings of the teams can affect loss penalty. Example: A 3 point loss to a higher ranked team costs less than it would to a lower ranked team.
• Rivalry losses penalized. Recruiting implications and “bragging rights” are very strong.
• Non-participation in conference title game penalized
• Loss in conference title game penalized
• Both teams ranked in Top 10 in any game increases loss penalty. Recruiting and image implications
• Games regionally or nationally televised, increases loss penalty. Recruiting and image implications
• Non-participation in a bowl game penalized.
• Loss in bowl penalized.
• Loss in a Playoff bowl or Championship bowl penalized.

The system and its reasonable penalties have been applied, merely as an example mind you, to head coach Mike Gundy of Oklahoma State University for the 2016 season. His base is, for this example, $5,000,000. His guaranteed minimum salary, for this example and negotiable, is $1,000,000. A number of scenarios of a 4-loss season would result in his receiving only the guaranteed minimum. Any 5-loss season scenario would result in only the guaranteed minimum. Do you think a 5-loss season and a butt load of excuses deserve a $5,000,000 paycheck?

Mike Gundy’s Oklahoma State team lost three games in 2016…all were HOME games. He lost those games to one team ranked lower: Central Michigan, unranked at game time; and two teams ranked higher: Baylor, #4 at game time, and Oklahoma, #5 at game time. The home loss to Central Michigan by 3 points was a non-conference loss, costing coach Gundy $500,000. The home losses to Baylor by 11 points and to Oklahoma by 18 points were conference losses, both by more than 10 points and costing $600,000 each. Also, because both games were regionally televised, each carried an additional $250,000 penalty; and an additional $300,000 rivalry penalty for losing the Bedlam game. These two losses cost coach Gundy $2,000,000. So far, he has lost $2,500,000. The Cowboys failed to appear in the conference title game, costing an additional $500,000. That’s $3,000,000. OSU did win their bowl game handily by throttling Colorado, so there were no further deductions. The penalties for not winning/losing totaled $3,000,000. $2,000,000 is a nice paycheck for a 10-3 season, but is certainly a far cry from $5,000,000 for a fairly mediocre season.

Coaching staffs are hired to win, not just manage. Managers are cheap. Winning coaches are not.

Please don't feel too sorry for the coaches. After all, they don't die when they are asked to leave. Many go on to some other fairly high-paying positions at other schools...if they find it financially necessary.

When will the story end? Who knows? Why have the Athletic Directors not sensed the direction and lack of limits currently on salaries? Why don't they demand more for their money? It has almost gotten to be a contest now. Who can pay the most for mediocre performance?

The beaches and golf courses and resorts will soon be littered with ex-head football coaches trying to spend all their buy-out money.

This concept is effectively applicable to Offensive and Defensive Coordinators. In discussions with other fans, this should not merely be based just on wins vs losses, but on some distinct and appropriate standards for those positions too.

PENALTY SCHEDULE USED FOR THE EXAMPLE and subject to modification; but if penalties are not fairly harsh, the system loses impact…..much like thinking that if you pay some coach a lot, he will win more than a coach you wouldn’t pay a lot. Chip Kelly, for instance….or Jim Harbaugh.

NON-CONFERENCE LOSSES

HOME VS LOWER RANKED OPP = $500K; >7 = $600K

HOME VS HIGHER RANKED OPP = $300K; >7 = $400K

AWAY VS LOWER RANKED OPP = $300K; >7 = $400K

AWAY VS HIGHER RANKED OPP = $200K; >13 = $400K

CONFERENCE LOSSES

HOME VS LOWER RANKED OPP = $600K; >3 = $750K

HOME VS HIGHER RANKED OPP = $500K; >10 = $600K

AWAY VS LOWER RANKED OPP = $500K; >3 = $600K

AWAY VS HIGHER RANKED OPP = $300; >10 = $400K

NON-PARTICIPATION IN CONFERENCE CHAMPIONSHIP GAME = $500K

LOSS IN CONFERENCE CHAMPIONSHIP GAME VS LOWER RANKED OPP = $750K; >10 = $1M

LOSS IN CONFERENCE CHAMPIONSHIP GAME VS HIGHER RANKED OPP = $500K; >10 = $750K

NON-PARTICIPATION BOWL GAME = $1M

LOSS IN NON-PLAYOFF BOWL GAME VS LOWER RANKED OPP = $750K; >10 = $1M

LOSS IN NON-PLAYOFF BOWL GAME VS HIGHER RANKED OPP = $500K; >13 = $750K

LOSS IN PLAYOFF BOWL GAME VS LOWER RANKED OPP = $1m; >13 = $1.5M

LOSS IN PLAYOFF BOWL GAME VS HIGHER RANKED OPP = $750K; >13 = $1M

LOSS IN FBS CHAMPIONSHIP GAME = $1.5M; >13 = $2M

NOTE 1: If both teams are ranked in the Top 10 at game time, add $250K to loss penalty.

NOTE 2: If the game is televised nationally or regionally, regardless of rankings, add $250K to loss penalty.

NOTE 3: Rivalry penalties may be implemented. Examples: OU vs Texas; OU vs OSU; Notre Dame vs USC; Alabama vs Auburn, etc. In the example, $300K was implemented for OSU’s loss to OU.

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