K-State's $18.7M Coach Payout: A Bad Precedent?

Kansas State is in a precarious position regarding its former men's basketball coach, Jerome Tang, to whom the university owes $18.7 million. The athletic department, led by AD Gene Taylor, is reportedly seeking to fire Tang for cause, a maneuver that legal experts believe will likely fail, meaning the full contract amount will be due. This situation underscores a broader trend in college athletics where coaches are often given lucrative, fully guaranteed contracts, which can lead to significant financial regret for institutions shortly after signing.

The article suggests that Taylor's decision to pursue termination for cause, rather than honor the contract, is a move to avoid financial obligation. However, legal interpretations of contract language, particularly concerning 'objectionable behavior' determined by the athletic director's 'sole reasonable judgment,' are complex. Agents and athletic directors acknowledge the difficulty of negotiating incentive-laden deals when pursuing highly sought-after coaches or retaining them amidst competition. The pressures from university presidents, boards, and even politicians can also influence these high-stakes decisions.

Ultimately, the author argues that Kansas State's potential failure to pay Tang his full due would be a positive deterrent for future ADs who might consider similar actions. While acknowledging the widespread conditions that contribute to such contract structures, the piece emphasizes that 'reasonable' is a critical legal term in Tang's contract that may ultimately favor the coach receiving the full $18.7 million, irrespective of the school's desire to avoid the payment.