If I were him, I'd do so from out of state. We could very easily read that Coach got "lost" in a bayou on a "hunting trip" in the next couple of weeks.

SirDippinDots said:

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TyperWoods said:

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I don't blame him. He had a contract. Whatever they promised him was part of the reason he left ND.

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The problem I assume he has is that contract disputes have to be litigated in Louisiana. Good luck with that.

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agent-maroon said:

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Quote:

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Former LSU football coach Brian Kelly rejected two financial settlement offers from the university, and his attorneys have given LSU officials a Monday deadline to confirm in writing that they'll pay him the $54 million he's owed under the terms of his contract.

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https://www.espn.com/college-football/story/_/id/46915913/ex-lsu-coach-brian-kelly-rejected-2-settlement-offers

A&M football related because we got his butt fired. Good luck with the lawsuit kitties!

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This feels similar to another buyout negotiation I'm familiar with.

It's the same reason why people that win the lottery take a lump sum. If you invest properly, you could almost make MORE money with a lump sum vs a multi year payout.

Bill Superman said:

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BMX Bandit said:

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if yall would bother to read the article, you'd see why Kelly may likely choose to settle.

option 1: $54 million paid monthly through 2031, reduced by any amount he makes coaching elsewhere

option 2: $30 million paid in two payments (dates not stated in article)


there is a guaranteed number less than $54 million he will accept based on the time value of money and no need to mitigate.

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The most obvious solution is to retire and collect the $54 million to be paid through 2031. Could be the easiest decision anyone's ever had.

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He can't to get that he has to seek employment. If he wants to,retire take a settlement

Those guys aren't wired like that though. He probably does wants a bulk payout with removal of the mitigation but the two offers are too little. They offer that deal gets done.

But whatever as long as it screws tiger, I'm happy.

BMX Bandit said:

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there is a guaranteed number less than $54 million he will accept based on the time value of money and no need to mitigate.

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Exactly. It all comes down to the discount rate. The yield on the 5-year is about 3.7%. I suspect Kelly and his agent want a discount rate in that range whereas LSU is offering something higher. If I were Kelly I wouldn't accept a discount rate higher than the 5-yr yield. The risk of LSU defaulting on their obligations is about the same as federal government defaulting on theirs, so the rate should be equal.

More contract and personnel minutiae from another school!

Kelly may not want to retire now….He's 64 years old….and only he knows how much passion and juice he has to stay in the head coaching world.
All that being said, the 30M is his best option with no deductions from LSU for "working elsewhere"….. with all the coaching vacancies out there he could land somewhere else for between nine and 10 million a year, coming out well over 54 million by 2031…..

If the contract has no provision for them paying him 54 million LESS what he earns coaching somewhere else, why would he accept 54 million LESS what he earns coaching somewhere else?

BMX Bandit said:

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if yall would bother to read the article, you'd see why Kelly may likely choose to settle.

option 1: $54 million paid monthly through 2031, reduced by any amount he makes coaching elsewhere

option 2: $30 million paid in two payments (dates not stated in article)


there is a guaranteed number less than $54 million he will accept based on the time value of money and no need to mitigate.

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It really depends on what his goals are for the next several years. Does he want to continue to coach or just sit back and collect a fat check?

If he wants to be a head coach then when you factor in how much he'd actually get from LSU over the next 6 years and the whole time value of money thing, maybe cutting a deal is his best option.

If he wants the most amount of money for the least amount of effort then he should just keep collecting his monthly check through the end of the contract. This is what I would do if I were him.

Hill08 said:

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Bring n WOOD said:

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Kelly may not want to retire now….He's 64 years old….and only he knows how much passion and juice he has to stay in the head coaching world.
All that being said, the 30M is his best option with no deductions from LSU for "working elsewhere"….. with all the coaching vacancies out there he could land somewhere else for between nine and 10 million a year, coming out well over 54 million by 2031…..

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I don't think a school would pay BK 10M a year.

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Let's say he gets rehired in 2027…..even at 8M a year, he'd earn 32M by 3031, plus the 30M buyout, he'd be at 62M by 2031 in lieu of 54M…..

BMX Bandit said:

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if yall would bother to read the article, you'd see why Kelly may likely choose to settle.

option 1: $54 million paid monthly through 2031, reduced by any amount he makes coaching elsewhere

option 2: $30 million paid in two payments (dates not stated in article)


there is a guaranteed number less than $54 million he will accept based on the time value of money and no need to mitigate.

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$30 million today is only worth $53 million in 6 years if you average 10% annual returns. It would be better to take the payments and kick it on a beach for the rest of his life because when you're pulling down about a million a month for doing nothing, making another million or so a month working a high stress 60 hour a week job doesn't sound like an appealing proposition. If I'm BK, I take the money and walk away.

I dunno, $35MM paid in two installments with no mitigation clause seems like a pretty good deal, considering time value of money. I guess it would depend on when that second installment is.

Why would he not agree to a guaranteed 54 mil? It's only 6 years to get it all. It's not like it's 30 years.

He's 64, and doesn't look like he's in tip-top shape, health wise.

He's not throwing away 20 mil. 6 years is nothing.

LSU wants to settle because their financials are in shambles. I would not settle if I'm BK, it would be stupid to deny yourself $20MM, that you're owed.

Maybe we'll get another Bobby Bonilla Day situation.

combat wombat said:

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If the contract has no provision for them paying him 54 million LESS what he earns coaching somewhere else, why would he accept 54 million LESS what he earns coaching somewhere else?

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He has them cornered with early signing date coming up. Plus what big name future coach is going to sign a contract with them while a lawsuit is pending. Just recalculating net present value based on current interest rates makes current value of contract in todays dollars 45-50 million.

LB12Diamond said:

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He's not throwing away 20 mil. 6 years is nothing.

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Time value of money says otherwise. Without getting into too much minutiae, $54MM over 6 years is a $750,000 monthly payment 72 times. Discounting at 7% interest results in a present value just under $44MM. If he can get them to $40MM and no mitigation clause, you'd be a fool to not take that deal.

He'll have a huge tax bill if he takes the lump sum, but there would be short-term certainty.

ABATTBQ11 said:

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BMX Bandit said:

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if yall would bother to read the article, you'd see why Kelly may likely choose to settle.

option 1: $54 million paid monthly through 2031, reduced by any amount he makes coaching elsewhere

option 2: $30 million paid in two payments (dates not stated in article)


there is a guaranteed number less than $54 million he will accept based on the time value of money and no need to mitigate.

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$30 million today is only worth $53 million in 6 years if you average 10% annual returns. It would be better to take the payments and kick it on a beach for the rest of his life because when you're pulling down about a million a month for doing nothing, making another million or so a month working a high stress 60 hour a week job doesn't sound like an appealing proposition. If I'm BK, I take the money and walk away.

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If you can't make 15% year over year you aren't very smart