FAYETTEVILLE — The offer letter for new Arkansas basketball coach Eric Musselman is worth at least $12.5 million over five years.
Musselman will be paid $2.5 million through the 2023-24 season, with an automatic extension and raise in place for NCAA Tournament appearances. He was paid a base salary of $1 million at Nevada, where he coached the past four seasons.
According to his offer letter signed Saturday, Musselman can receive up to two one-year extensions and up to two $100,000 annual raises for Arkansas playing in the NCAA Tournament. Musselman is expected to sign his formal contract with Arkansas within 90 days.
Musselman's salary would be increased by $250,000 for leading the program to the Sweet 16 for the first time; by $350,000 for leading the program to the Final Four for the first time; or by $500,000 for winning a national championship. The pay raises cannot accumulate.
Other incentives could total as much as $300,000 per year and are based on SEC championships, players' academic achievements and individual coaching awards earned by Musselman.
Musselman's signed agreement also includes a no-compete clause that prohibits him from taking another head coaching position within the Southeastern Conference. Musselman would owe Arkansas $5 million if he terminates his contract prior to April 30, 2021.
That buyout drops to $1.5 million between May 2021 and April 2022; $1 million between May 2022 and April 2024, and to $750,000 for any years earned as an extension.
If Musselman is fired for convenience, Arkansas would owe him 70 percent of the amount guaranteed on his contract, including for any years earned through NCAA Tournament appearances. The Razorbacks will pay Nevada $1 million to buy out Musselman's contract with that university.
Other perks outlined in Musselman's offer letter include 10 complimentary tickets to all home basketball games, and five complimentary tickets to home games in other sports; two loaner vehicles or a car allowance not to exceed $8,400 annually; up to $25,000 in moving expenses and up to three months in temporary housing; and memberships to The Blessings or Paradise Valley Country Club, and Fayetteville Athletic Club.
CORRECTION: This story has been corrected to reflect the correct buyout amounts with the correlating dates, and the correct maximum incentive compensation.