The true math about the Neal Brown buyout (2024)

Math is hard. Contracts are hard. Lawyer jargon is downright ridiculous. All are involved when trying to evaluate a coaching contracts and the potential buyout. That has been a hot discussion among WVU fans lately.... apparently. It was brought to my attention via our members on the message board that there were several conflicting stories out there about the buyout - what it was, what it is, how it's changed, etc. And, finally, saltydog8159 put it plainly in our VIP Mailbag:

The truth about the Buyout as of today and how it works throughout the contract

Easy enough. Maybe. Let's break down what the contract is, and what it was, and what it could be depending on what WVU does (or doesn't do) moving forward.

The first thing that needs clearing up....

Contracts are paid out on a biweekly or twice-monthly basis, just like most people are paid with any other job in the country. If a coach is making $4 million over twelve months, then he has already received $3 million of that by the time you get through nine months of the year. That will be important later.

The second thing that needs clearing up....

The old contract had a deadline where the buyout percentage decreased. The new extension eliminated that, and the buyout percentage is the same no matter when Neal Brown would hypothetically be fired. That will also be important later.

The old contract

Under the old contract, the term ran through the end of the 2026 season, there were salaries of $4.1 million, $4.2 million and $4.4 million in 2024, 2025, and 2026, respectively. If Brown was fired on or before 12/31/2024, then he would receive 100% of his remaining salary. If he was fired after that date, then the percentage dropped down to 85%.

The new contract

Under the new extension, the term runs through the end of the 2027 season, with salaries of $4 million in 2024 and 2025, $4.3 million in 2026, and $4.4 million in 2027, adding an extra year and shifting money around. The buyout is 75% of the remaining salarywhether Brown is fired tomorrow or two years from now.

The Math

Again,when a coach is fired is important to the math here, even if there is no deadline like the old contract. The reason is that the buyout would be the prorated portion of the current year's salary. The buyout number will be different if Brown is fired in September as opposed to November, although those numbers will be, quite frankly, insignificant in the grand scheme of things.

That being said, let's look at a couple hypothetical situations. First, what if Neal Brown is fired at the end of September (giving us a clear 3/4 of the calendar year for 3/4 of a salary)?

Old Contract -100% of the remainder of his 2024 salary ($1.03 million) plus 100% of both 2025 ($4.2) and 2026 ($4.4) for a grand total of $9.63 million

New Contract -75% of his remaining 2024 salary ($1.00 million) plus 75% of the remaining three years ($4+4.3+4.4 for a total of $12.7). Seventy-five percent of that number ($13.7) comes out to a grand total of $10.275 million.

Result? With the new extension, WVU is paying out $645,000 more to Brown if they fire him at the end of this month than they would have under the old deal.

Okay, let's now go to Brown being fired at the end of the season. All money paid this year is a sunk cost, done and gone. So we're just looking at future salaries. In that scenario, WVU would have paid $8.6 million (100% of his remaining contract) under the old deal, but will pay $9.525 (75% of $12.7 million) under the new deal, which equals $925,000 more. Take away $100,00 because of the savings in salary, and your true difference is $825,000.

Let's say WVU pulls a reverse-Dana and waits until January 1st to make their move, prompting the 85% trigger in the old deal. That would have saved WVU $1.3 million on the old deal, bringing the buyout down to $7.31 million..... while it would still remain $9.525 under the new deal.

How about the ship gets righted, WVU finishes 8-4 on the season, and they ride it out for one more year, but things go horribly in 2025? WVU moves on after the 2025 season. That would mean Brown got his salary for all of 2025, then the buyout for beyond that. In the old deal, that would be a total of $7.94 million ($4.2 million in salary plus $3.74 million in buyout), while the new extension would have paid him $10.525 million ($4 million salary plus $6.525 million in buyout). That's a difference of $2.585 million - saving $200,000 in salary, but paying $2.785 million more in buyout.

The result

No matter when WVU hypothetically fires Neal Brown, the University would be on the hook formore in buyout money now than they were under the old contract. And the difference only gets greater with time, as the examples we just gave saw the contrast go from $645,000 to $2.585 million.

The salaries get slightly lower, which is a positive, especially in the early parts of the deal. The Athletic Department also spread the payments out over more time, as the contract states that"The Severance Benefit shall be paid by the University in regular bi-weekly installments.... through the Termination Date."

The previous contract had similar language, but the term sheet was shorter. Once you start getting into present value of money, alternative investment opportunities, etc etc etc..... there's an argument for "I'd rather pay $9.525 million over three years than $8.6 million over two years." Of course, the margin for that argument gets thinner the more the gap grows between the two scenarios.

The true math about the Neal Brown buyout (2024)

FAQs

The true math about the Neal Brown buyout? ›

That would mean Brown got his salary for all of 2025, then the buyout for beyond that. In the old deal, that would be a total of $7.94 million ($4.2 million in salary plus $3.74 million in buyout), while the new extension would have paid him $10.525 million ($4 million salary plus $6.525 million in buyout).

How much money does Neal Brown make? ›

Brown will be paid $4 million in each of the next two seasons, a reduction of $100,000 in 2024 and $200,000 in 2025 from a previous contract signed in 2021. He'll make $4.3 million in 2026, a $100,000 drop, and $4.4 million in 2027.

When was Neal Brown hired? ›

Troy. Troy announced Brown's hire on Sunday, November 30, 2014. In 2015, Brown's Trojans posted a 4–8 record.

How many years are left on Neal Brown's contract? ›

– West Virginia University Vice President and Director of Athletics Wren Baker and Football Head Coach Neal Brown have agreed to terms on a one-year contract extension. The extension keeps Brown under contract for the next four years and goes through the 2027 season.

How much does Judge Brown make a year? ›

Salary. It was reported in mid-2012 that Brown was the second highest paid daytime television personality, earning $20 million a year, only second to Judge Judy, who earns $45 million a year.

Who was the first black football player at Brown? ›

Pollard played halfback on the Brown football team, which went to the 1916 Rose Bowl. He was the first African American football player at Brown.

Who is West Virginia's new head football coach? ›

Neal Brown - Head Coach - Staff Directory - West Virginia University Athletics.

Who is the WV basketball coach? ›

How much does Don Brown get paid for UMass football? ›

What's UMass Head Coach Don Brown's Salary? Don Brown signed a five-year deal when he was hired before the 2022 season. He made $816,000 in total pay in 2023, according to USA Today, and made $829,600 in 2022.

How much does the Browns coach make? ›

However, when he became the head coach of the Browns, that's when his net worth shot up. His annual salary after being hired was around $3.5 million. At just 42 years old, Stefanski is one of the youngest coaches in the NFL. However, that $10 million net worth is just average in terms of the NFL.

What is Coach Mike Brown salary? ›

The base salary of the deal is worth $8.5 million per season, with bonuses that could reach $10 million per year. Sacramento coach Mike Brown has agreed to a three-year, $30 million contract extension through 2026-27 season, sources tell @TheAthletic @Stadium.

How much money does Robin Brown make? ›

Personal Information
Real NameKody Brown, Robyn Brown, Meri Brown, Janelle Brown and Christine Brown
AliasKody Brown, Robyn Brown, Meri Brown, Janelle Brown and Christine Brown
Net worthKody Brown- $800,000 Robyn Brown- $600,000 Meri Brown- $400,000 Janelle Brown- $400,000 Christine Brown- $400,000
8 more rows
Feb 3, 2024

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