April 7, 2013
Guns Up, Cash Down: Tubby Smith Takes a Large Pay Cut at Texas Tech
Tubby Smith agreed this week to become head coach of the Texas Tech men’s basketball team. He’ll start off earning $1.6 million in guaranteed compensation. That amount is scheduled to increase by $100,000 each year through the 2018-19 season.
As compared to the $1.6 million he’ll make this season in Lubbock, Smith would have been guaranteed at least $2.25 million in compensation at Minnesota (a difference of $650k or 41% more than he’ll make at Texas Tech).
Going forward the guaranteed compensation gap will close up slightly. Smith’s required annual raises under his Minnesota agreement would have been roughly half of the $100,000 he’s to receive as the leader of the Red Raiders.
Tubby shouldn’t be short on cash after the significant buyout of his contract by the University of Minnesota, but going forward his decrease in pay is substantial.
In addition to the lower guaranteed compensation, Smith’s incentive potential is far lower at Texas Tech than it was at the ‘U’. The Gophers also included some easily achievable bonuses for Tubby.
Compensation under Hypothetical Scenario for 2013-14 Season
Smith coaches team to a 4th place conference finish and NCAA tournament appearance, where his team loses in their first game. The team has an APR of 950 and graduation success rate of 50%.
|Guaranteed||$2.25 million||$1.60 million|
|Incentives||$0.35 million||$0.08 million|
|TOTAL||$2.60 million||$1.68 million|
Using the same hypothetical scenario above for both schools, Smith would make over $900k (55%) more at Minnesota in 2013-14 than he would at Texas Tech.
Coach Smith, whose teams at Minnesota had their own troubles with APR scores, could run into academic issues at Texas Tech related mostly to seasons prior to his arrival. Beginning with the 2015-16 contract year, Smith would not receive any incentive payouts if the team is subject to a postseason ban or has been penalized otherwise with respect to poor APR performance.