The Win AD contracts library contains many thousands of contracts to support best practices drafting by your negotiating team and counsel, including compliance management in coach contracts. So we were very intrigued by Tom McMillen’s April 26, 2011 article in The Baltimore Sun:
“If the NCAA imposes penalties for problems that existed during a coach or director’s employment, why not require them to return some salary and bonuses to the university — even if they have moved on to another job? After all, many coaches get bonuses for good academic performance by their teams, why shouldn’t there be penalties for poor performance?
If there were significant clawback provisions in the contracts for athletic directors and coaches as I proposed to our board of regents, I guarantee they would be more vigilant about what happens on their watch. Substantial financial incentives would encourage them to insure that rules are followed, that they wouldn’t be able to afford to look the other way.
I suspect that it will be difficult to establish this process — too many coaches are dedicated to winning at any cost. But University System of Maryland Chancellor William Kirwan is also head of the Knight Commission on Intercollegiate Athletics. I am hoping he and I can work to persuade the NCAA to institute clawback policies. But first we want to make the University of Maryland a leader in creating a process where winning is accompanied by responsibility.”
Researching the Win AD database for coach contracts and talking with our customer community, we learned that Arizona State University is implementing the following provision in new and existing coach contracts:
a. Forfeiture of Bonuses for Violations of NCAA or Conference Legislation. Coach will forfeit and repay to the University any Supplemental Compensation or performance bonus paid to Coach when the achievements that were the basis for such Supplemental Compensation or performance bonus are vacated, diminished or in any way affected by any sanctions, whether self-imposed by the University or imposed by the Conference or the NCAA, resulting from: As with every negotiation, there are unique factors to consider. Where appropriate, however, this approach may be fitting for certain coaches and programs. Putting ideas into practice through the Win AD contracts library – that is one example of the value that Win AD can delivers.
i. violations of NCAA or Conference Legislation by Coach, and/or
ii. violations of NCAA or Conference Legislation relating to the Program by an assistant coach, other Program personnel or a student-athlete Program member, and either (A) the violation occurs or continues to occur after Coach knew or should have known that it was about to occur or was occurring, or (B) Coach failed to establish and maintain reasonable policies and procedures for the Program to prevent violations of NCAA or Conference Legislation.
Compensation Clawback Provisions: Mitigating the Effects of ViolationsWith the NCAA’s rule changes increasing the accountability of head coaches for the actions of their programs 1, it may also be an opportune time for athletic directors and administrators to consider extra safeguards when signing coaches to a contract. Read moreThis Section 13(c) will apply regardless of whether (A) such violations of NCAA or Conference Legislation result in termination of this Contract or (B) Coach is still employed by the University.
As with every negotiation, there are unique factors to consider. Where appropriate, however, this approach may be fitting for certain coaches and programs. Putting ideas into practice through the Win AD contracts library – that is one example of the value that Win AD can delivers.
