Posted on behalf of Chris Psihoules
Sports Contract Drafting Gone Bad
Last week it was reported that Arizona Wildcats Head Basketball Coach, Sean Miller, discussed paying $100,000 to ensure that freshman Deandre Ayton would sign a letter of intent with the school. This violation, if true, would allow Arizona to terminate his contract with cause. However, according to the language of his contract, if terminated for cause, Miller may be entitled to 85% of the money still due under his contract, or $10.3 million.
The Termination by University Without Cause; Liquidated Damages clause in Miller’s contract with the University does not limit Miller to keeping only monies already paid or past due. In direct contrast, it entitles him to receive his Base Salary. One would think that somewhere amidst the drafting of this contract, language limiting Miller’s salary should have been inserted. It was not, and what we now have is a situation where the University will save money by terminating Miller without cause.
An odd contract language twist to an already bizarre situation. Read a more in-depth Forbes article written by Darren Heitner here.