Additional Insight on Tom Crean and His Contract With Indiana
“It reminded me a lot of the political theater I used to be part of”
— Indiana Athletic Director Fred Glass on announcing Crean’s extension to a packed Assembly Hall
The media is again struggling to get the specifics of the buyout provisions correct, so we’ll step in. In this article we’ll also discuss a few other angles of interest related to this topic.
What is the amount of Tom Crean’s buyout?
His buyout depends on the timing of termination. If he were to be terminated at the end of this month (March 2015), the buyout would be a minimum of $11.1MM and could be as high as $12.0MM.
From now through June 30, 2015, the buyout is the lesser of $12MM and the remaining “outside, marketing and promotion income” payable under his contract. $11.1MM represents the buyout total if there have been no annual merit increases. However, such merit increases are allowable under the employment agreement and just a 5% increase would push the buyout figure as of the end of this month to $11.6M.
On July 1 of this year the buyout drops to $7.5MM.