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According to the letter of agreement signed by Auburn head coach Gus Malzahn and athletics director Jay Jacobs, Malzahn, introduced Tuesday as Auburn's head coach, will be paid $2.3 million annually for five years with the opportunity to earn another $1.5 million annually in performance bonuses.
The letter is binding but is not a contract. The letter says the contract must be completed by Jan. 15 or the agreement is void.
The letter from Jacobs to Malzahn follows.
Dear Coach Malzahn:
On behalf of Auburn University, I congratulate you on becoming our head football coach. This letter is a summary of the agreement we have reached. Auburn has offered the position of head football coach to you, and you have accepted. The basic terms of our agreement are set forth below, and it is understood that this letter does not contain all of the terms of the agreement. You and Auburn will enter into a separate written contract setting forth the entirety of our agreement as soon as practicable.
The basic terms of our agreement are:
1. You will become head football coach effective today.
2. You will be paid $2.3 million annually, consisting of a base salary of $500,000.00 and the balance in payments for assignment of all of your endorsement, radio, television and internet rights, fundraising and personal appearances. The term of the agreement will be five years from the date of your hiring.
3. In addition to annual income of $2.3 million, you will be eligible for academic
and performance bonuses on an annual basis not to exceed $1.5 million.
4. You will be responsible for assembling a coaching staff subject to prior approval by Auburn and clearance by the SEC and NCAA.
5. You will be responsible for operating the football program in accordance with Auburn, SEC and NCAA rules and bylaws and within the budget established by Auburn. You understand that you are responsible for the actions of all persons under your direct or indirect supervision or subject directly or indirectly to your control or authority and further that you are responsible for promoting an atmosphere of compliance and monitoring the conduct of those persons under your supervision or subject to your control or authority.
6. One of our primary goals is to have our student-athletes graduate with an undergraduate degree, and you will support our student-athletes in their efforts.
7. In the event you are terminated without cause, Auburn will pay you the base salary for the remaining term of the contract. The base salary will be the amount listed in paragraph 2 above and will not include amounts paid to you for assignment of all of your endorsement, radio, television, and internet rights, fundraising and personal appearances. The payments will be made on a monthly basis over the remaining term of the contract. If you are terminated with cause, Auburn will have no further obligation to you. Auburn has the right to terminate your employment with cause for certain grounds, including but not limited to serious violation(s) of NCAA, SEC or Auburn rules and regulations or serious personal misconduct. If you terminate the contract, you will pay an amount equal to the base salary for the remaining term of the contract.
8. Auburn will pay your buyout of $700,000.00 from your previous employment and treat the payment as a loan to you. This loan will be forgiven by 20% each year over the course of your contract with Auburn so long as the contract is in force.
9. We will work together in a timely and cooperative manner to agree upon the remaining terms set forth in the contract to be executed. Failure to execute the agreement by January 15, 2013 will result in the term of the agreement being void and upon 30 days written notice by Auburn, your employment terminated.
I look forward to our future successes together. Welcome to the Auburn family.
Seriously, don't take me too serious.
Interesting. I never realized the buyout was considered a loan to the individual that is being bought out.
Auburn '99, Beta Zeta of Theta Xi
It's complete information like this that makes AUC above and beyond the local paper, or for sure the now satellite call-in circus radio!
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