June 12, 2013
Gophers: Tubby Smith May Have Another $225k Coming
According to consulting firm Pleasant Avenue Athletics (PAA), the University of Minnesota may still be on the hook for $225,000 related to APR incentives in Tubby Smith’s contract with the school.
The APR data publicly released by the NCAA yesterday shows a single-year (2011-12) APR score of 981 for the Minnesota men’s basketball team.
Although the University has likely known what the reported APR score would be for some time, PAA’s experience shows that these types of incentive payouts can often be delayed or even missed when a coach and school go separate ways.
There are two components to the $225,000:
(1) $150,000 for an APR score of 981 in 2011-12; and
(2) $75,000 for a revised APR score of 959 in 2010-11.
Per the amended contract entered into between Minnesota and Smith last summer, an incentive of $150,000 would be earned for a single-year APR score of 970 or greater.
Prior to the 2012 amendment (effective July 2012), coach Smith was to earn $25,000 for an APR score between 930 and 939. In June 2012, the NCAA reported an APR score for 2010-11 of 939.
However, since that time the score has been adjusted to 959. The agreement in effect in June 2012 called for a $100,000 bonus payout for an APR score of 950 or greater. Therefore, Smith has a reasonable claim for an additional $75,000 bonus payment.
These amounts may have already been paid out, but there’s a reasonable likelihood that they have not. In addition to the APR bonuses, PAA notes that additional amounts may be due to Smith related to GPA and graduation success rate incentives.
Finally, it’s relevant to note that we do not consider any incentive amounts earned during Smith’s coaching tenure to be a cost of termination (i.e., “a buyout cost”).
Related articles that may be of interest:
Q&A: Richard Pitino’s Contract with Minnesota (April 16, 2013)
Tubby Smith’s Buyout: Approximately $3.25 million (February 13, 2013) $3.25
Guns Up, Cash Down: Tubby Smith Takes a Large Pay Cut at Texas Tech (April 7, 2013)