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O'Brien's Contract Explained

  • 5 year deal, total of 2.3 million per year (950,000 base salary for first 18 months)

    The rest of the details are explained through the link via Penn Live

    This post was edited by Andrew Dzurita on 2/15/2012 at 7:54 AM

    Penn State football coach Bill O'Brien's contract explained

    The coach's five-year contract includes a liquidated damages clause to cover early termination.

    blog.pennlive.com

    Andrew Dzurita

  • It's crazy to see O'Brien's bonuses for winning compared to some coaches at other programs.

    signature image

    PSUjosh11

  • PSUjosh11 said...

    It's crazy to see O'Brien's bonuses for winning compared to some coaches at other programs.

    are you saying his bonuses are less or more than other coaches for winning?

    Nittny65

  • PSUjosh11 said...

    It's crazy to see O'Brien's bonuses for winning compared to some coaches at other programs.

    Incentives: (not to exceed $200,000 cumulatively)

    Winning the division: 5 percent of base salary
    Big Ten championship game: 8 percent of base salary
    Participation in bowl game: 11 percent of base salary
    Winning the BCS championship game: 9 percent of base salary

    Interesting that compensation cannot exceed 200k, but cumulatively the bonus' add up to 33% of base salary (313k). You would think that since he has to achieve 1, to get 2, 3 is not necessarily dependent on 1 and 2, but certainly if BSC championship is in the works all three prior have been achieved. Hence, why cap at 200k?

    danmcc

  • Nittny65 said...

    are you saying his bonuses are less or more than other coaches for winning?

    It doesn't seem out of line compared to some of the recent contracts I've seen online. IIRC, his bonus incentives are pretty close to what Luke Fickell had but slightly lower than UM's, though i believe UM has a higher base salary so that could be the difference.

    LBU 03

  • I'm ssuming the 11% bonus is for getting to a bcs bowl, not a little Caesars bowl

    PSUbacon

  • PSUbacon said...

    I'm ssuming the 11% bonus is for getting to a bcs bowl, not a little Caesars bowl

    The article doesn't differentiate BSC or other bowl so I would assume 11% for any bowl. 11% equates to 104k, bowls pay out substantially more than that plus the bowl money pooled from all the big ten bowl games.

    danmcc

  • danmcc said...

    Incentives: (not to exceed $200,000 cumulatively)

    Winning the division: 5 percent of base salary
    Big Ten championship game: 8 percent of base salary
    Participation in bowl game: 11 percent of base salary
    Winning the BCS championship game: 9 percent of base salary

    Interesting that compensation cannot exceed 200k, but cumulatively the bonus' add up to 33% of base salary (313k). You would think that since he has to achieve 1, to get 2, 3 is not necessarily dependent on 1 and 2, but certainly if BSC championship is in the works all three prior have been achieved. Hence, why cap at 200k?

    Yea, that math doesn't make sense to me either. It would seem there's no financial incentive for him to want to win the NC. Obviously there are more incentives besides the stated financial ones, but still, it doesn't seem to add up

    LBU 03

  • LBU 03 said...

    Yea, that math doesn't make sense to me either. It would seem there's no financial incentive for him to want to win the NC. Obviously there are more incentives besides the stated financial ones, but still, it doesn't seem to add up

    It could be that if BO'B wins the NC then it's time to renegotiate the contract, the bonus structure of the previous contract is irrelevant then. Call it a signing bonus? biggrin

    danmcc

  • danmcc said...

    The article doesn't differentiate BSC or other bowl so I would assume 11% for any bowl. 11% equates to 104k, bowls pay out substantially more than that plus the bowl money pooled from all the big ten bowl games.

    I assume it is a typo. Making a bowl is the easiest of those tasks, so why would it have greatest incentive? Also, many bowls are financial losers due to forced ticket sales, travel costs, etc...

    I certainly could be wrong, but as written it does not make sense. (plus IMO his incentive for making A BOWL is not getting canned)

    PSUbacon

  • PSUbacon said...

    I assume it is a typo. Making a bowl is the easiest of those tasks, so why would it have greatest incentive? Also, many bowls are financial losers due to forced ticket sales, travel costs, etc...

    I certainly could be wrong, but as written it does not make sense. (plus IMO his incentive for making A BOWL is not getting canned)

    Valid point. The incentives I pasted above are from the article. Perhaps the actual contract has more specific language regarding the bowl bonus that the author left out.

    danmcc

  • PSUbacon said...

    I assume it is a typo. Making a bowl is the easiest of those tasks, so why would it have greatest incentive? Also, many bowls are financial losers due to forced ticket sales, travel costs, etc...

    I certainly could be wrong, but as written it does not make sense. (plus IMO his incentive for making A BOWL is not getting canned)

    I'm not sure about a typo. Here is a link to the actual contract. (bottom of page 5)
    http://openness.psu.edu/pdf/OBrien_contract.pdf
    It's just as unclear as the pennlive article states. Seems like it may be something that was overlooked by B'OBs agent & lawyer.

    LBU 03

  • Nittny65 said...

    are you saying his bonuses are less or more than other coaches for winning?

    Less, it seems. No?

    signature image

    PSUjosh11

  • LBU 03 said...

    I'm not sure about a typo. Here is a link to the actual contract. (bottom of page 5) http://openness.psu.edu/pdf/OBrien_contract.pdf It's just as unclear as the pennlive article states. Seems like it may be something that was overlooked by B'OBs agent & lawyer.

    I'm not sure it was an item overlooked by the BO'B's lawyer. if the language seems to indicate any bowl gets 11% bonus that works in BO'B's favor.

    danmcc

  • The insentive to win Bcs games or the Championship game is the next contract. If he is very succesful over the next couple of years they will renegotiate his contract and you will see those percentages go up and base salary go way up. He is a first time head coach I think it was smart of the school to negotiate the contract they did. If he proves himself then let's pay him what's he is worth.

    DjHart