WholeHogSports
JOHN PELPHREY ERA BEGINS : Bonus plan amplifies deal
Posted on Tuesday, April 10, 2007
URL: http://www.wholehogsports.com/adg/187024/
FAYETTEVILLE — The emphasis on Arkansas ’ commitment to winning big in basketball again can be seen in new Coach John Pelphrey’s incentive-laden compensation agreement that in a perfect season could push $ 2 million.
The school also insured itself against losing the new coach prematurely by writing buyout penalties into his deal that start at $ 3 million if he leaves before his second season.
Pelphrey and Arkansas have agreed to a five-year contract that will pay him $ 750, 000 per year, putting him 10 th among SEC coaches in salary. But he can earn $ 1. 2 million more in bonuses if his team pulls off a dream season on the court and in the classroom.
Maxing out the incentives would push Pelphrey’s earnings to $ 1. 95 million.
The financial figures are detailed in a compensation letter that he signed Monday. The school released the document in response to an open records request by the Arkansas Democrat-Gazette.
It’s a shift from the way Arkansas has structured previous contracts for basketball and football coaches. Those deals have featured base salary and outside income and have been relatively light on incentives.
Previous basketball coach Stan Heath, who was fired March 26, earned close to $ 800, 000 a year. The most he could earn in bonuses was $ 100, 000.
Pelphrey can earn $ 200, 000 for an SEC regular-season championship, $ 100, 000 for an SEC Tournament title, $ 100, 000 for an NCAA Tournament Sweet 16, $ 200, 000 for a Final Four trip and $ 400, 000 for winning the national title.
The bonuses are cumulative, totaling $ 1 million.
Another $ 200, 000 can be earned by hitting certain academic performance rates — a system the NCAA uses to track athletes’ progress — and graduating players.
Leaving before the fifth year of the contract wouldn’t be cheap.
Pelphrey would owe Arkansas $ 3 million if he quits before his second season starts and $ 2 million if he goes before his third season starts. He’d have to pay $ 1 million to leave during the third or fourth seasons and there is no buyout provision in his fifth year.
Parker Executive Search of Atlanta suggested the buyout amounts as being consistent with those in other recent contracts nationally, UA sports information director Kevin Trainor said.
Athletic Director Frank Broyles could not be reached Monday night to comment on the compensation.
Pelphrey’s $ 750, 000 salary is more than double what he made at South Alabama. The Mobile (Ala. ) Register reported last month that Pelphrey earned a base salary of $ 202, 000 with another $ 100, 000 possible in incentives.
USA Today studied the compensation of coaches whose schools made the 2006 NCAA Tournament. The average salary for those coaches in the six major conferences — Atlantic Coast Conference, Big East, Big Ten, Big 12, Pac-10 and SEC — was $ 1. 2 million, not counting benefits or incentives.