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When a college football coach is dismissed, the buyout amount specified in his contract is often just a starting point for negotiations. The actual amount paid can be significantly lower, thanks to offset clauses and mitigation requirements that reduce the school's financial obligation when the coach finds new employment. The 2025 coaching cycle provided several notable examples of how these dynamics play out in practice.
Offset clauses allow a school to subtract a coach's new salary from the buyout owed, sometimes dollar-for-dollar. Many contracts also include a duty to mitigate, which requires the coach to actively seek comparable work. As one agent told CBS Sports, "buyouts are often starting points in negotiations." Schools and coaches may also agree to creative structures, such as heavy up-front payments for tax purposes or trades where a coach gives up some money in exchange for other concessions.
Brian Kelly, LSU
Kelly was originally owed $54 million, but LSU attempted to fire him for cause to avoid the buyout, leading to a legal battle. The school even claimed that athletic director Scott Woodward lacked the authority to terminate Kelly. Eventually, around Thanksgiving, Kelly was formally terminated without cause, as confirmed by a letter obtained by CBS Sports. He received his full buyout, contingent on fulfilling his obligation to find another job. Kelly now works as an analyst for CBS Sports.
James Franklin, Penn State
Franklin's original buyout was $49 million, the second-largest in college athletics history at the time of his firing. However, Penn State and Franklin settled on a significantly lower amount before he accepted the head coaching position at Virginia Tech. In an interview with USA Today, Franklin admitted the negotiation was difficult. "You go through that deal, and you're thinking, I don't want to let them off the hook financially," he said. "But it wasn't about me penalizing Penn State. At that point, it was about what do I need to do for my family and for myself to be happy and move on?" The actual buyout paid was $9 million.
Mark Stoops, Kentucky
Stoops was owed $37.7 million, but the original terms required payment within 60 days of his firing, which would have been a massive financial hit for Kentucky. Instead, the parties restructured the buyout: Stoops received nearly $4 million up front by December 16, 2025, with the remaining balance paid quarterly through April 1, 2031, amounting to about $6.7 million annually. There is no offset language, and the separation package includes a mutual non-disparagement agreement and cooperation requirements for future NCAA inquiries. Stoops is currently a special assistant at Texas.
Jonathan Smith, Michigan State
Smith was owed 85% of his remaining contract through 2030, totaling $33.5 million. His contract includes offset language, but he has not yet taken a coaching job that meets the offset criteria. The contract requires Smith to actively seek comparable employment as an NFL or Division I coach, but he is not required to accept a position if it is not in the best interest of his career. The contract also prohibits Smith from structuring new compensation to avoid mitigation and requires him to provide ongoing information about his job search. As one industry source told CBS Sports, "You need to be nice to the bank so you can withdraw money out right over the course of your contract. Schools have gotten really sharp lately by introducing language that doesn't allow you to game the offset." Michigan State can suspend the buyout if Smith is not communicative about his future employment. The actual buyout remains $33.5 million for now.
Billy Napier, Florida
Napier's contract contained no offset or mitigation, and half of his $21 million buyout was due within 30 days of his 2025 firing. The lack of offset allowed James Madison to hire Napier at a discount; his salary is middle of the road in the FBS and near the top of the Group of Six market, but he is not the highest-paid G6 coach, which he might have commanded given JMU's stature. The actual buyout paid was $21 million.
Hugh Freeze, Auburn
Freeze's $15.4 million buyout had no offset or mitigation, and he is not currently coaching, so he will receive every penny owed. The actual buyout paid was $15.4 million.
Mike Gundy, Oklahoma State
Gundy's $15 million buyout is offset by future employment, but he is not currently coaching. His contract requires him to make "reasonable and diligent efforts to obtain comparable employment" in the football industry, including coaching positions at a university or professional team. He has been working as an analyst for TNT Sports. The actual buyout paid was $15 million.
Justin Wilcox, California
Wilcox's $10.9 million buyout includes offset language for any amount paid if he takes a job as a football coach, coordinator, or athletics administrator, or as an officer in an organization that regulates football competition. He has not taken another job, so the actual buyout remains $10.9 million for now.
Sam Pittman, Arkansas
Pittman negotiated a reduced buyout of $8.3 million, taking $1.5 million less than originally owed in exchange for removing the clause that would have compelled him to seek work until age 65. He was paid 62.5% of his remaining salary instead of the 75% initially owed, a rate that applied because his record at the time was over .500. Had Arkansas waited and his team's losing continued, dropping him below .500, the school would have owed only 50%. The final figure represented a middle ground.
Brent Pry, Virginia Tech
Pry's situation was unusual: Virginia Tech fired him as head coach and then rehired him as defensive coordinator under Franklin in December. His initial buyout was set to pay him just over $6 million through 2027, but it was amended to $3.1 million when he was rehired. His defensive coordinator salary for 2026 and 2027 totals around $3 million, so the school is still on the hook for roughly the same amount, just through different means. Pry could come out ahead with performance bonuses plus his $2 million salary for 2028. The actual buyout paid was $3.1 million (technically).
Originally reported by cbssports.