A question was posed to me recently about the buyouts U of L has paid since 2017. I’d done the analysis in the aftermath of the regime takeover to properly account for the net cost to athletic department finances. That comment makes more sense when I describe the process.
As everyone knows, buyouts are often not lump sum payouts esp. when a contract specifies how it’s paid. And when they involved a replacement hire, the U of L buyouts were typically accompanied by a savings component: the hire of a replacement at a lower salary. I’ll first list the buyouts, salaries where applicable, and the relevant time frames…
Athletic Director
Jurich (salary $2.76 million) replaced by Tyra ($0.85 million) and paid a buyout of $7.17 million spanning the years 2018 through 2026.
Football Coaches
Petrino ($3.98 million) replaced by Satterfield ($3.25 million) and paid a buyout of $14.48 million over the years 2019 through 2021.
Petrino’s assistants paid a combined $4.01 million in buyouts spanning 2019 through 2021.
Basketball Coaches
Pitino ($5.50 million) replaced by Padgett ($0.80 million) for 2018, no buyout.
Padgett ($0.80 million) replaced by Mack ($4.00 million) from 2018.
U of L paid Xavier $4.00 million to buy out Mack in 2018.
Stadium Naming Rights
Schnatter was paid $9.50 million as a buyout over the years 2020 through 2024.
L&N Credit Union pays ULAA $2.00 million annually as the new sponsor starting in 2023.
It’s believed that Schnatter’s buyout was delayed from the original schedule of 2020-2024. There’s also no allowance for the Pitino assistant coaches’ buyouts.
The net payment of buyouts compared to salary savings that resulted was the true cost to ULAA to buy out coaches and the various contracts. Buyouts involved an initial expense that was gradually recouped as lower salaries were paid to the replacement employees.
Even though the gross amount of buyouts, by my calculation, exceeded $35 million, the maximum net cost U of L had ever amassed was slightly under $15 million (in 2022) because of the salary savings and the fact that buyouts were usually paid over time. The following table and graph illustrate this point. By the end of 2025, ULAA’s net position will be restored to zero or where it should have been had the original buyouts and employee turnover never occurred.
As everyone knows, buyouts are often not lump sum payouts esp. when a contract specifies how it’s paid. And when they involved a replacement hire, the U of L buyouts were typically accompanied by a savings component: the hire of a replacement at a lower salary. I’ll first list the buyouts, salaries where applicable, and the relevant time frames…
Athletic Director
Jurich (salary $2.76 million) replaced by Tyra ($0.85 million) and paid a buyout of $7.17 million spanning the years 2018 through 2026.
Football Coaches
Petrino ($3.98 million) replaced by Satterfield ($3.25 million) and paid a buyout of $14.48 million over the years 2019 through 2021.
Petrino’s assistants paid a combined $4.01 million in buyouts spanning 2019 through 2021.
Basketball Coaches
Pitino ($5.50 million) replaced by Padgett ($0.80 million) for 2018, no buyout.
Padgett ($0.80 million) replaced by Mack ($4.00 million) from 2018.
U of L paid Xavier $4.00 million to buy out Mack in 2018.
Stadium Naming Rights
Schnatter was paid $9.50 million as a buyout over the years 2020 through 2024.
L&N Credit Union pays ULAA $2.00 million annually as the new sponsor starting in 2023.
It’s believed that Schnatter’s buyout was delayed from the original schedule of 2020-2024. There’s also no allowance for the Pitino assistant coaches’ buyouts.
The net payment of buyouts compared to salary savings that resulted was the true cost to ULAA to buy out coaches and the various contracts. Buyouts involved an initial expense that was gradually recouped as lower salaries were paid to the replacement employees.
Even though the gross amount of buyouts, by my calculation, exceeded $35 million, the maximum net cost U of L had ever amassed was slightly under $15 million (in 2022) because of the salary savings and the fact that buyouts were usually paid over time. The following table and graph illustrate this point. By the end of 2025, ULAA’s net position will be restored to zero or where it should have been had the original buyouts and employee turnover never occurred.
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