February 13, 2020Four Nelson Mullins Attorneys Ranked in Chambers Global 2020 Guide
Legal Issues in Collegiate Athletics
This article first appeared in Sports Litigation Alert Vol. 17, Iss. 2, and is printed with permission of Hackney Publications.
“Over recent years, buyout clauses have become increasingly commonplace in the college football coaching carousel, essentially providing for liquidated damages in the event of the early termination of an employment contract,” write attorneys Dan Cohen and Jeff Daniel, who co-authored an article about a contract dispute at the University of Arkansas for Legal Issues in Collegiate Athletics.
The two provided context and perspective of the larger issues of buyout clauses, while discussing the university’s decision to file a lawsuit against a former coach.
“When negotiating and structuring a buyout clause, a school should take these considerations into account. The buyout amount should be reasonably sufficient to cover not only future salary escalation, but also any pain the school might have to absorb in paying a replacement coach’s buy-out from a previous employment contract.”
These materials have been prepared for informational purposes only and are not legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Internet subscribers and online readers should not act upon this information without seeking professional counsel.