You are on page 1of 28

THE UNIVERSITY OF IOWA

AMENDMENT TO HEAD COACH CONTRACT

This Amendment to the Head Coach Contract between The University of lowa (University) and
Francis J. McCaffery (Coach) effective March _,2016, to and incorporates by reference
is attached
all of the terms and conditions of the Head Coach Contract between University and Coach effective July
1.,20L2, the Amendment to Head Coach Contract, effective July 1, 2013, and the Amendment to Head
Coach Contract effective July 1, 2014, (collectively the "Contract") €xcept as modified herein.

The parties agree as follows:

1. Section 10 of the Contract is amended by deleting the current section and replacing it with the
following:

10. TERMINATION BY UNIVERSTIY WITHOUT CAUSE; LIqUIDATED DAMAGES

This Contract may be terminated by the President at any time without Cause, upon
written notice to Coach (any written termination to Coach by the President or the University
that does not explicitly state that such termination is for Cause shall be deemed a termination
without Cause, and the provisions of this Paragraph 10 shall apply). In such event, Coach will
not be reassigned to any other posiltion within the Departnnent of Athletics. Further, in such
event, University shall pay to Coach as liquidated damages and not as compensation or a
penalty, in lieu of any and all other legal remedies or equitable relief, the sum of 56,800,000 if
the Contract is terminated before July 1, 2016, 55,700,000 if the Contract is terminated on or
after July, t,2Ot6 but before July 1, 2Ot7 ,54,60A,000 if thr: Contract is terminated on or after
July, 1, 2017 but before July L, 20L8, 53,500,000 if the Contract is terminated on or after July, 1,
2018 but before July 1, 2019,52,7011,000 if the Contract is terminated on or after July, 1, 2019
but before July 1, 2020, 51,350,000 if the Contract is terminated on or after July 1, 2020 but
before July 1, 2O2t and nothing if tl"re Contract is terminated on or after July L, 2021. The above
sum will not be reduced in the event of Coach's subsequent employment during the period
covered by this Contract. Paymentsi shall be made in equal monthly installments over the
remaining months of the Contract, beginning one month after the date of termination. The
University shall also promptly reimLrurse Coach for all expenses incurred by Coach prior to
termination that would have been reimbursable had this Contract not been terminated. The
University shall also be responsible for all amounts earned pursuant to the terms of the Contract
by Coach priorto the effective date of termination but unpaid as of that date; and those
amounts shall be due and payable within thirty days of the effective date of termination
(including any bonuses or other incc'ntive pay that was earned or achieved prior to the date of
termination, even if not payable until after such date). Tht-' University shall not be liable to
Coach for any University benefits or collateral business opportunities or other benefits
associated with Coach's position as Head Men's Basketball Coach. The parties have bargained
for this liquidated damages provisicrn, giving consideration to the Following: This is a Contract
forpersonal services. Thepartiesrr:cognizethataterminationofthisContractbyUniversity
prior to its natural expiration may cause Coach to lose certain benefits, supplemental
compensation or outside compensartion relating to his employment at University, which
damages are difficult to determine with certainty. Accordingly the parties agree to this
liquidated damage provision, and tl"re parties agree that Co,ach shall have no duty to mitigate or
offset such damages.

Section 11 of the Head Coach Contract effective July 7,201.2 is amended by deleting the current
section and replacing it with the following:

11. TERMINATION BY COACH

Coach agrees not to seek or apply for other coaching positions without prior notice to
the Director of Athletics. However, Coach may terminate this Contract without cause
immediately upon written notice to University. In the event of such termination, University's
sole obligation to Coach shall be pal/ment of his compensation as provided in Paragraph 3
hereof through the date of such termination, as well as anv incentive compensation earned but
unpaid pursuant to Paragraph 4 above (including expenses incurred by Coach prior to
termination that would have been reimbursable had this Agreement not been terminated).

lf Coach terminates the Corrtract voluntarily and accepts another head basketball
coaching position with any professional team or other Division I college or university (a
"Position") before July 1, 2020, he vuill be responsible to require that said new employer pay
University liquidated damages, in lieu of any and all other legal remedies, or equitable relief,
S1,000,000.00 commencing upon Crcach's employment with new employer. Payment shall be
made in equal monthly installments; over the remaining months of the Contract, beginning one
month after the date of acceptance. Such payment by ther new employer to the University is,
and shall be considered for all purposes, consideration pairJ by the new employer to the
University for the right to hire Coaclh and the obligation will continue until paid in full, even if
Coach does not continue working for new employer for an'y reason. Such payment is expressly
not a payment made to satisfy an olbligation owed personarlly by Coach for payment of such
amount as no such personal obligation of Coach for paymernt of such amount is created under
this Contract. lf the new employer timely pays the applicable amount to the University, neither
Coach nor such new employer shall have any further obligation to University under this Section
11. However, in the event the new employer does not timely pay the full amount described in
this Section 11, then Coach shall be deemed in breach of tlris Agreement and the Coach agrees
to pay the obligation of the new enrployer or the balance unpaid, whichever is less.

Appendix B of the Contact is amencled by adding the following two paragraphs:

Coach shall have access to a private jet for his pers;onal use for up to 1.0 hours per year.
Every effort will be made to secured donated airtime with rental using department funds as a
second option after all attempts to secure donated time have been exhausted.

Coach understands that some or all of these benel'its may be subject to federal or state
taxation and that he shall be responsible for any tax he may incur as a result of the receipt of
said benefits.
All other terms and conditions of the CQntract between University and Coach, s amendefl by
Amendment, shall remain in full force and effect.

I have read and understand the Contact and agree to abide by its terms and

It
Date (lzalk
Francis John

,"r" trf of u

,n" Lf.tfl 6 J. Billce Harreld


President
THE UNIVERSITY OF IO\V A

AMENDMENT TO HEAD COACH CONTRACT

This Amendment to the Head Coach Contract between The University of Iowa (University)
and Francis J. McCaffery (Coach). effective July I. 2014. is attached to and incorporates by
reference all of the terms and conditions of the Head Coach Contract between University
and Coach. effective July L 2012. and the Amendment to Head Coach Contract. effective
on July L 2013. except as modified herein.

The panies hereto promise and agree as follows:

I. Paragraph I of the Head Coach Contract effective July 1. 2012 (Head Coach Contract)
is hereby amended to delete the following language:

The term of Coach"s appointment specifically to the position of Head Men·s


Basketball Coach shall begin July 1. 2012. and continue until June 30. 2019. unless
this Agreement is terminated pursuant to Paragraphs 9. I 0 or 11 belo\\ (the .. Term .. ).

And replace it with the following:

The tenn ofCoach·s appointment specifically to the position of Head Men·s


Basketball Coach shall begin July I. 2012. and continue through June 30. 2020 if
during such te1111 an NCAA Tournament bid is not achieved. but if an NCAA bid is
achieved during such tem1. then the term of Coach·s appointment shall be extended
through June 30. 2022. unless this Agreement is te1111inated pursuant to Paragraphs 9.
I 0 or 11 below (the ·Term··).

2. Paragraph 3 of the Head Coach Contract is hereby amended to delete the following
language:

University agrees Coach will be paid a guaranteed annual salary as follows:

Base Salary
Year one $750.000
Owside Income
Public speaking. appearances. S250.000
fundraising engagements and camps

Television and radio programming $150.000


(paid directly by Learfield Communications. but guaranteed by the University)

Apparel/Shoe Contract $150.000


(paid directly by Nike. but guaranteed by the University)
Page I of 4
Total Outside Income $550.000

Tora! Annual Guaranteed Compensation - Year one $ 1.300,000

Then. if NCAA bid achieved in 2012-13 Schedule A


2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Base Salary $1.000.00C s; 1.050.000 s; 1.050.000 $1.100.000 S l .100.000 SI .150.000
Outside Income 5)700.00C $750.000 5800.000 5800.000 $850.000 $850.000
Total $ 1.700.000 51.800.000 $ 1.850.000 s 1.900.000 51.950.000 5'2.000.000
Guaranteed

Or. ifNCAA bid not achieved in 2012-13 then Schedule B


2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
Base Salary S900.000 SI .000.000 s 1.000.000 s1.050.000 s1.050.000 Sl.100.000
Outside Income S600 . 000 $600.000 $650.000 S650.000 5700.000 5)700.000

Total $1.500.000 s1.600,000 s1.650.000 s 1.700.000 51.750.000 s; 1.800.000


Guaranteed

If after year one the team receives a bid to pai1icipate in the NCAA Tournament.
Coach's total guaranteed compensation will be as set fo11h in Schedule A above for the
balance of the Contract te1111. If a post-season NCAA bid is not received at the end of the
first year. Coach's guaranteed compensation shall be as set fo11h in Schedule B until the
team receives an NCAA bid. Upon receipt of an NCAA bid at any time during the term
of this Contract. Coach's guaranteed income will be determined according to the terms
of Schedule A commencing in the Contract year following receipt of the NCAA bid and
for the balance of the Contract Te1111.

And replace it with the following:

University agrees Coach will be paid a guaranteed annual salary as follows:

Base Salary
2014-15 $1.050,000
Outside Income
Public speaking. appearances, $375,000
fundraising engagements and camps

Television and radio programming $225,000


(paid directly by Learfield Communications, but guaranteed by the University)

Apparel/Shoe Contract $150,000


(paid directly by Nike, but guaranteed by the University)
Page 2of4
Total Outside Income $750,000

Total Annual Guaranteed 2014-15 $1,800,000

If at the conclusion of the 2014-15 season the team receives a bid to pa11icipate in the
NCAA Tournament. Coach's total guaranteed compensation shall be as set fcmh in the
following Schedule A for the balance of the Contract Tenn as extended per the
language in Paragraph 1 and as shown in Schedule A below.

Schedule A
2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

Base Salary 51.200.000 s 1.250.000 s1.250.000 $1.300.000 Sl .300.000 SI .350.000 $1.350.000

Outside 5800.000 $800.000 $850.000 $850.000 5900.000 5900.000 5950.000


Income
Total S2.CXJO.OOO S2.050.000 52.100.000 52.150.000 $2.200.000 S2.250.000 S2.300.000
Guaranteed

Ifat the conclusion of the 2014-15 season the team does not receive an NCAA bid.
Coach's total guaranteed compensation shall be as set forth in the following Schedule B
for the balance of the Contract Term until such time as the team receives an NCAA bid.
Upon receipt of an NCAA bid at any time during the balance of the Contract Term.
Coach's total guaranteed income shall be as set forth in Schedule A above commencing
in the Contract year following receipt of the NC AA bid and for the remaining balance of
the Contract Tem1 as extended per the language of Paragraph 1.

Schedule B
2015-16 2016-17 2017-18 2018-19 2019-20

Base Salary s 1.050.000 $1.100.000 SI .100.000 $1.150.000 Sl.150.000

Outside Income $800.000 $800.000 $850.000 $850.000 5900.000

Total $ 1,850.000 s 1.900.000 s1.950.000 $2.000.000 S2.050.000


Guaranteed

3. Paragraph 9.A. of the Head Coach Contract is hereby amended to delete the following
language:

A. One significant or repet1t1ve violations of the duties of the Head Men· s


Basketball Coach. which are outlined in Appendix A. or of any of the other
tenns/conditions of this Contract. or a refusal or unwillingness to perfo1m such
duties in good faith and to the best of the Coach's abilities.

Page 3 of 4
And replace it with the following:

A. One significant violation or multiple or repetitive violations of the duties of


Coach. which are outlined in Appendix A or of any of the other
terms/conditions of this Contract or a refusal or unwillingness to perfo1111 such
duties in good faith and to the best of the Coach·s abilities:

4. The Head Coach Contract shall be amended to include the following paragraph
regarding discipline and the paragraph currently numbered 16 in the Head Coach
Contract shall be renumbered as Paragraph 17:

16. DISCIPLINE

Pursuant to NCAA By-Law 11.2.1 (or any successor by-law). if Coach is found in
violation of any NCAA regulations (follmving all timely appeals). Coach shall be
subject to disciplinary or corrective action as set fo11h in the provisions of the NCAA
infractions process.

All other terms and conditions of the Head Coach Contract between University and
Coach effective July I. 2012 and the Amendment to the Head Coach Contract effective
July I. 2013. shall remain in full force and effect.

I have read and understand the terms contained in this Amendment to Head Coach
Contract dated the day and date first above written.

Date l I - IJ -- If Signed
I1a
Direct r of Athletics

Date f 1/ftf / /'/ Signed £'!..


President

Page 4 of4