Article posted on November 8, 2011

Looking across 100 men’s basketball head coach contracts from the 2009-2010 season, there are four primary contract structures and other “variables that ADs may want to consider for contract language about the organization of basketball camps.”

Because camps represent an income stream for coaches, a recruiting pipeline for schools (e.g., Butler) and a branding opportunity for programs, we reviewed nearly 100 men’s basketball head coach contracts from the 2009-2010 season. Below we provide sample language from four primary kinds of contract structures:

1. University Administrated

2. Profits Retained from Basketball Camp

3. Head Coach Responsible for Reimbursement

4. Guaranteed Money Regarding Camps in Contract

Some colleges place much more of an emphasis on the school’s brand when publicizing and implementing a basketball camp. In these cases, the infrastructure for the camp should already be solidly in place, along with necessary funding allotments and facility charges. The coach is able to work within a static system and is put in the best possible position to sell the brand.

Other universities have a much more dynamic system in place and depend much more on the coach to bring his nuances to the camp. These instances let the coach have complete creative control, and he usually also earns any profits accrued from the camp’s attendees.

Both of these systems have their pros and cons. One is a bit stiffer and less dynamic, but provides a sense of security and a built-in plan for working with campers. The other plan lets the coach really put his stamp on the program, but the infrastructure is a bit less stable. The preference really depends on the circumstances, and there are ample opportunities and success stories in both categories.

There are other variables that athletic directors may want to consider for contract language about the organization of basketball camps. The most pressing difference, for some, is in the financial department. Some schools pay a flat rate to the coach for running the camp, while others let the coach retain any profits accrued from the activity. A flat rate offers financial security, while a more variable aspect allows the coach to have some leeway in terms of the creation of new activities for the camp.

Another factor to consider is the manner by which financials are allocated in terms of the facilities. Some schools require their coaches to pay for use of the facilities out of season, while others waive such a cost. In a few cases, a coach will receive a discount from the school. Western Kentucky University, for example, has the coach place a $1 deposit as payment.

Below are several examples of contract language indicating different aspects regarding coaching camps. Some cross into other areas of the camp-contract spectrum as well.

1. University Administrated

Florida State University – Leonard Hamilton

Coach is hereby authorized, during each Contract Year, to conduct and participate in an annual men’s basketball summer camp (the “Camp”). The Camp shall be conducted by Coach as a private enterprise in the name of Leonard Hamilton Basketball Camps, Inc. Coach shall be entitled to profits in excess of expenses derived from the Camp so long as he is employed with the University as Head Men’s Basketball Coach or until such time as the University may elect, in its sole discretion, to operate the Camp as a function of the University Department of Intercollegiate Athletics. During each Contract Year, the University will reimburse expenses directly related to operation of the Camp in an amount not to exceed $50,000 per Contract Year. Such reimbursement will be payable through the ADF in accordance with its guidelines directly to Leonard Hamilton Basketball Camps, Inc. Camp expenses may not be carried over to any subsequent Contract Year.

University of South Alabama – Ronnie Arrow

Summer Camps – Coach shall have the opportunity to use University facilities in connection with the summer youth basketball camp run by coach and using his name for available weeks each summer, provided that the University is reimbursed by coach for its actual and overhead expenses incurred in making the facilities available with the understanding that the two week period (or more if available) shall be as designated by the University upon consideration of the preferences of Coach, and upon such conditions as may be required from time to time by the University’s administration. Any fees for University Facilities will be those that are usually and normally charged by the university. Any profits made by coach from this enterprise shall be retained by him solely. Coach may request the use of such facilities for two weeks (or more if available), and the university may grant such request in its discretion. The University shall administer financial aspects of the summer program.

2. Profits Retained from Basketball Camp

University of Kansas – Bill Self Head Coach

shall be entitled to operate a summer basketball camp and basketball clinics in accordance with the policies of KU and Athletics concerning the operation of such camps and clinics. Athletics and Head Coach hereby agree that said camp shall have priority use of Athletics facilities during the second and third weeks of June during each year of this Agreement. Head Coach hereby acknowledges and agrees that Athletics shall receive 2% of the net revenues derived from said camp.

Ohio University– John Groce

Subject to the prior written approval of the Director, which approval will not unreasonably be withheld, the Head Coach shall be permitted to enter into other compensation arrangements for outside income beyond his duties to the University during the term of his employment with the University, such as youth camps, coaches clinics, and shoe and apparel contracts which must be in conjunction with University’s designated shoe/apparel contracts. All compensation shall be reported to the Director on accordance with applicable Mid-American Conference or National Collegiate Athletic Association (NCAA) requirements, including annual notification of the amount of such compensation.

University of Illinois at Champaign-Urbana – Bruce Weber

Coach is responsible for directing the University’s summer Men’s Basketball camp and providing all services necessary and incidental to such position. Total Men’s basketball coaching staff compensation will be based on a will equal 90% of the net profit of the camp as calculated by the university after payment of all direct expenses which shall be payable within 90 days of the completion of camp. Coach shall recommend to the Director the allocation of such camp compensation for all men’s basketball coaches for summer camp duties and such camp compensation shall be paid in accordance with coach’s recommendations.

3. Head Coach Responsible for Reimbursement

Louisiana Tech University – Kerry Rupp

Coach may operate a camp for the teaching of athletic pursuits on the University property to the end of better utilization of the facilities and with suitable compensation paid to the University for the use of such facilities. The use of University facilities will be determined by the availability of those facilities as established by the University. It is specifically agreed that in the operation of such camps, COACH acts for himself in his private capacity and not as an agent or employee of the University and that this agreement consumes merely a license to use the property and facilities subject to the conditions set forth in the athletic department camp policy or adopted by the University President and Athletics council.

Rutgers, State University of New Jersey, New Brunswick – Mike Rice

You will direct basketball camps and clinics at Rutgers beginning in the summer of 2010. You will be required on an annual basis to execute the standard camp/clinic contract with Athletics for use of facilities and to pay any amounts due to Rutgers University including but not limited to room and board costs for campers and staff. The camps will be run through your limited liability company and owned by you and shall be subject to Rutgers’ rules and regulations governing athletic sports camps conducted at Rutgers.

University of Washington – Lorenzo Romar

The parties acknowledge that employee may own, work for, or otherwise be associated with a private sports camp. Employees may request to use University facilities administered by University personnel for such sports camps. Use of University facilities by employee will be pursuant to a separate contract, which shall include a requirement that the sports camp pay the University an appropriate fee for the use of the facility. Employee understands he is responsible for ensuring that any camp activities comply with the State Ethics law.

4. Guaranteed Money Regarding Camps in Contract

University of Minnesota – Tubby Smith

Summer Camp Supplement; Space Availability. During each of the first four years of the Agreement, Coach shall receive a supplement of Fifty Thousand and no/100 Dollars ($50,000) for each summer period during which he operates a basketball camp, provided that Coach’s basketball camp operated consistent with Governing Association rules and University policies. Subject to space availability and other program needs of the Department, Coach shall have the right to hold up to four weeks of basketball camp per summer in University facilities beginning in June, in accordance with Governing Association rules and University policies, and may use University facilities at other times of year to conduct clinics and other educational and instructional programs.

University of Texas at Austin – Rick Barnes

UTAUS will sponsor summer basketball camps for youths from eight to seventeen years of age. For the period that Barnes is the head basketball coach, Barnes will be required to perform such services in connection with such camps as may be assigned by the Director and will be paid $100,000 annually for such service. Barnes shall not be entitled to conduct or direct summer basketball camps that are not sponsored by UTAUS. Barnes will provide to the Director recommendations for payments to the camp staff from the net proceeds of the camps.

University of Utah – Jim Boylen

Non-Institutional Summer Basketball Camp – In order to advance the public relations interest of University and enhance recruiting, University shall make available to Coach for summer basketball camps the use of gyms and facilities at a rate not to exceed $3.00 per camper per week. The $3.00 per camper per week shall include the use of University’s gyms and related facilities, including locker rooms, swimming pool and the like, and shall further include any and all insurance required for the purpose of operating such summer basketball camps. University will charge coach lodging and food costs for the campers at the lowest rate provided by University to any other person or entity that has purchased University food and lodging. In consideration for Coach’s agreement to conduct a non-institutional summer basketball camp, the University shall pay Coach the sum of One Hundred Thousand Dollars (100,000) per year. The University will make such payment to Coach within ten (10) days of receiving written documentation evidencing the net profits from the camp. The University will not be required to make such payment to Coach in any year within which Coach does not conduct and/or participate in such a camp. The University’s Auditor may audit Coach’s records concerning the camps.

Below is a table that summarizes the foregoing contract styles across conferences.

NOTES

  • Among the nearly 100 agreements we reviewed in this study, roughly 20 did not fall neatly into any of the above four categories, so they are not reflected in this chart.
  • Florida State and South Alabama were the two “University Administrated” schools.
  • The “guaranteed money” rating reflects more institutional organizations, as evidenced by 60% of member schools being BCS.
  • The two most striking contrasts between “Profits Retained” and “Head Coach Reimburse” are the Big 12 and the Atlantic Coast Conference. Former Big 12 school Colorado would also have fallen in the “Profits Retained” category.
  • With the “Profits Retained” schools, there are some that can retain only the ceiling of a certain amount. Those schools are Cincinnati, Michigan State, California and New Mexico. All coaches at these schools can make, maximum, only $50,000 off the camps.
  • Within the “Profits Retained” schools, there are some that retain profits after reimbursing the university. These schools include Mississippi State, Indiana, Buffalo, Illinois, Utah State, Arizona, Mississippi, Central Florida, Nevada-Reno, Kentucky and Connecticut. Note that no Big 12 schools fall into this status, either. The main difference between these schools and the other schools where the head coach must reimburse is that, for these schools, payment and profit are stipulated in the contract. It is not so for those in a separate category.