Grandpa Duck No. 1 Share Posted December 8, 2021 Steve Berkowitz’ Article in this morning’s Register Guard, originally in USA Today, puts price of Cristobal’s buyout, and paying off Diaz at 27.7 million. There are rather severe income and excise taxes for a private nonprofit entity on payments to their highest paid employees. Even though Oregon gets the Cristobal buyout, Miami pays it through Cristobal who owes the tax. Since Miami reimbursed Diaz’ tax when they hired him away from Temple in 2019, the writer assumes that the IRS will require the same treatment for Ctistobal’s tax obligation on his 8 million buyout obligation. Chump change? Link to post Share on other sites More sharing options...
UtahDuck No. 2 Share Posted December 8, 2021 This I think would go up more if Salave'a, Mirabal and bobby williams all follow suite. I think their contract buy outs are around 25% of the remaining. Feld would have a buyout. Ken wilson would too. This is assuming they follow cristobal and aren't released from the university. I could see another 3ish million plus added to this because Mirabal and feld are most definitely following cristobal. don't forget they need to buy out the current staff at Miami as well. My expectation is that they will be paying upwards of 35 million to fire and hire cristobal. Then pay cristobal a guaranteed 85 million. Then you have his new staff(oregons coaching staff was making something like 6 million+ a year) so i assume he would want at least that much. that is 170 million over 10 years. all the while the indoor practice facility at miami isn't even a full football field in length... well good luck. 2 Link to post Share on other sites More sharing options...
Haywarduck Moderator No. 3 Share Posted December 8, 2021 It would be interesting to know how this all works. They never contacted Oregon about talking to Cristobal, never paid the buyout before they signed him. It all seems so convoluted. What, other than good will, makes them pay the $8 million? They got their guy, he is working, not like he is no longer their coach if they don't pay now. I would think there should have been a clause where if you didn't pay before signing Cristobal it becomes $10 million and an additional $1 million a week. It seems kind of like a toll road ticket where you are never going back there, and never pay it, what do I know? The lawyers may make more on this than anyone, I suppose. Link to post Share on other sites More sharing options...
UtahDuck No. 4 Share Posted December 8, 2021 On 12/8/2021 at 10:29 AM, Haywarduck said: It would be interesting to know how this all works. They never contacted Oregon about talking to Cristobal, never paid the buyout before they signed him. It all seems so convoluted. What, other than good will, makes them pay the $8 million? They got their guy, he is working, not like he is no longer their coach if they don't pay now. I would think there should have been a clause where if you didn't pay before signing Cristobal it becomes $10 million and an additional $1 million a week. It seems kind of like a toll road ticket where you are never going back there, and never pay it, what do I know? The lawyers may make more on this than anyone, I suppose. I work in software sales and we have a buyout(release) clause on some of our products. typically speaking the money is never due upfront and is standardized at 120 days from release unless otherwise specified. I am not a lawyer but an upfront payout would be nigh impossible especially due to the nature of how coaching hires happen and likely wouldn't be enforceable in court. Also for 1m/week would seem highly excessive and no agent would let their coach sign that contract. With that said it is still a signed contract, if he refuses to pay his release clause he opens himself up to litigation. Specifically speaking the reason head coaches have release clauses is that when a new coach is brought in they typically cull the previous staff and now the university has to pay those coaches buyouts(unless the follow the previous head coach). In such Oregon would have a solid lawsuit that covers the 8 million, plus damages, plus legal fees. The lawsuit would be against cristobal as he is the owner of the contract. Now if Miami refused to pay cristobal his buyout, than cristobal could sue miami. All in all if miami doesn't pay than Cristobal will be in a very bad place. All this is based on my assumption of release clauses due to my work their could be some differences, in college football. Like it could be possible that the university is only owed their portion of the buyout on a year basis until the original contract is expired. although I still think it most likely due upfront in 120(or 90) days from monday. To close, it is possible that you could add a penalty, again 1m/week is way to high and likely would never be signed but I could see a 10-50k a week penalty for contracts of this size. Link to post Share on other sites More sharing options...
Jon Joseph Moderator No. 5 Share Posted December 8, 2021 MY RECOMMENDATION? SELL! The U will earn an average, at best, ROI. Link to post Share on other sites More sharing options...
Guest Axel No. 6 Share Posted December 8, 2021 The powers that be at the University of Miami clearly didn't pay attention to Cristobal's on-the-field product. My prediction: over the next four years, Oregon will win more games than Miami, and it won't be close. Link to post Share on other sites More sharing options...
Desert Duck No. 7 Share Posted December 8, 2021 $8 million, plus around another 50% to cover MC's income tax on that. $12 million-ish... just to cover MC's buyout alone. Ouch. Link to post Share on other sites More sharing options...
The Kamikaze Kid Moderator No. 8 Share Posted December 8, 2021 That's a lot of doe to pay to lead Duke by six heading into the 4th qtr. 1 Link to post Share on other sites More sharing options...
Washington Waddler Moderator No. 9 Share Posted December 8, 2021 On 12/8/2021 at 9:18 AM, UtahDuck said: all the while the indoor practice facility at miami isn't even a full football field in length... With any luck, it’s built over a yet to be discovered sink hole. Link to post Share on other sites More sharing options...
