Let’s Take a Look at Jeff Brohm’s Contract

As a public institution Purdue is required to share the details of its coaching salaries. It just takes some time for the full details to come out. Brohm signed on in December, but today we have some of the details. The Lafayette Journal & Courier released them today, so let’s take a look:

Similar to Darrell Hazell’s contract when he left Kent State, Purdue paid Western Kentucky $900,000 when Brohm terminated his contract with the school. It’s considered a loan to Brohm and Purdue will forgive $150,000 on December 31 of each year. If Brohm is fired by the end of the initial term, the remaining balance of the loan will be completely forgiven. If Brohm leaves on his own, he would owe the school the remaining balance of the loan.

This makes sense. It is a six year deal, so six years at $150,000 a year forgiven isn’t bad. I know in the past some schools have tried to work out a deal where they will play guarantee games instead. I don’t know for sure, but I would guess that is why Eastern Kentucky was on the schedule in 2012 and 2016. I would guess it was part of the deal for getting Danny Hope from there. We did not have a similar deal when we got Hazell from Kent State and Western Kentucky is not currently on the schedule. Ohio State played Youngstown State in 2007 and 2008, mostly because that is where Jim Tressell came from.

Provide $3.5 million for assistant coaches. His nine assistants will make a combined $3.075 million in their first year.

I like this, and it seems critical. Brohm has gone on record as saying he wants to spend money wisely and not just to spend it. He wants the right people in the right spots behind the scenes. That leaves $425,000 that can likely be spread around to other support personnel.

If Brohm is fired, he’s owed the remaining balance on his contract, which is currently for six years at $3.3 million per year. If Brohm is fired after he’s already received a total of $18 million in guaranteed compensation (base salary and supplemental stipend), Purdue would not owe any liquidated damages. Brohm also has a mitigation clause in the contract, requiring him to seek employment to offset Purdue's financial obligations.

Here is the big one. It is what kept Darrell Hazell around as long as he was around. The mitigation clause and $18,000,000 clause help too. The way I read this, Purdue is on the hook for at least $18 million. Since he wouldn’t pass that until at least near the end of year 5 we would likely be talking contract extension by then anyway as long as he wasn’t fired.

Most schools want to keep their coaches on contract for at least 4 years out for recruiting purposes. It is very unlikely Brohm gets to the end of year 5 without either an extension or getting fired.

If Brohm leaves Purdue on his own, he would owe the outstanding balance on the loan and also owe the university liquidated damages depending on the date:

Before Dec. 5, 2017: $5 million

After Dec. 5, 2017 and before Dec. 5, 2018: $4 million

After Dec. 5, 2018 and before Dec. 5, 2019: $3 million

After Dec. 5, 2019 and before Dec. 5, 2020: $2 million

After Dec. 5, 2020 through the end of the initial term (Dec. 31, 2021): $1 million

Brohm can retire from coaching for 12 months and not be responsible for any liquidated damages.

Basically, if Purdue surprises everyone, wins the Big Ten this year, and someone else hires Brohm away he owes us $5 million plus the remainder of that $900,000 loan. Of course, at that point, Purdue fans would be ecstatic anyway and it is very likely that whatever school hires him would pay that penalty, so it is a win-win. Also, he can retire at any time without penalty as long as he sits out a year.

Other Perks:

It is good to be the coach, as you get:

· Country Club membership

· Car allowance of $1,250/month

· Income from HS camps.

· $20,000/year of Nike gear

· Eight Purdue Football season tickets and 8 suite tickets

· 25 tickets per game for “business use”

· 2 lower arena season tickets for men’s basketball, women’s basketball, and volleyball

· Spouse and child travel to away games.

· Moving costs

· The Purdue jet for recruiting purposes

Bonuses:

Here is the part where we can dream:

· 6% performance base bonus for exceeding the national Graduation Success Rate

· 3% performance base bonus meeting GPA expectations outlines by the athletic director

· 10% performance base bonus for winning the Big Ten championship

· 6% performance base bonus for winning the Big Ten West (even if we tie for it)

· 3% performance base bonus for finishing 2^nd in the Big Ten West

· 7.5% performance base bonus for 6 regular season wins and a bowl bid

· 10% performance base bonus for 7 regular season wins and a bowl bid

· 12% performance base bonus for 8 regular season wins and a bowl bid

· 18% performance base bonus for reaching the Cotton, Fiesta, Orange, peach, or Sugar Bowls when they are not in the college football playoff

· 25% performance base bonus for reaching the Rose bowl if it is not on the College Football playoff.

· 40% performance base bonus for reaching the College Football Playoff

· 3% performance base bonus if we have a top 25 recruiting class according to any of the major recruiting services

· 5% performance base bonus as Big Ten Coach of the Year

· 10% performance base bonus as National Coach of the Year

For the purposes of these percentages, Brohm’s bonuses are awarded using a Performance Bonus Base of $1.5 million. The way I read this, he can get up to $1.5 million in bonuses each year. Sure, it would take Purdue winning the Big Ten, reaching the College Football Playoff, Brohm getting named National Coach of the Year, and us hitting the academic bonuses, but I have no complaints.