By Jonathan Teich
In March of 2011, Bradley University hired Geno Ford, as its new head men’s basketball coach. Ford had just completed his third successful season at Kent State. A casual fan may think this is just another hire because the coaching industry has lots of turnover. However, Ford’s hiring at Bradley was more complicated than having a press conference and press release announcing the hire.
Since he accepted a new job before his contract was completed at Kent State, the school sued both Ford and Bradley University. The school felt that Ford breached his contract and Bradley was wrong to hire Ford without receiving Kent State’s permission. But, what made Ford’s transition to Bradley a bigger challenge than the numerous coaching changes every offseason? The challenge was the language in his contract. Kent State and Ford must not have included language, which allowed for the early termination of the contract. Kent State and Ford did not include language, which would allow for the early termination of the contract.
However, due to the multiple coaching changes occurring every offseason, athletic departments are becoming smarter with every contract. They are including clauses that better protect themselves. These clauses are put in place to protect the other party in the event of an early termination. This presentation looks to examine the best practices athletic departments can use to protect themselves if they terminate a coach early or a coach leaves the school before the completion of his or her contract.
Important Clauses
Termination Clauses — A termination clause should state that a coach would be terminated because of death, disability, or criminal conduct
“Just Cause” — This should state that a coach could be terminated if they violate the organization’s rules, its affiliation rules, civil or criminal laws, moral turpitude, or refusal to perform duties.
Liquidated Damages Clause — A provision in a written employment agreement that stipulates the amount of money to be recovered if the employee is discharged is known as a liquidated damage clause. This clause provides some contractual advantages for the school. It allows them to predict how much it would cost to terminate a coach. It gives the coach and the school the chance to determine the sum before an arbitrator does.
Baldwin v. Board of Sup. For University of Louisiana (2014)
Jerry Baldwin was hired in 1999 and was given a four year contract. However, in 2001 the board was not satisfied with his performance and terminated the contract early and paid him the agreed upon liquidated damages. But, the school did not give him thirty days written notice as determined in the contract.
Either party may terminate the agreement without just cause prior to the expiration of its terms by giving thirty days written notice to the other party.
The best practice from this case is that an athletic department must follow the proper notice before termination.
Fleming v. Kent State (2010)
In 2010, when Kent State hired a new head coach Fleming was given an opportunity to apply for defensive coordinator. When he did not get the job he was reassigned to a new position which he never showed up for. His contract was then terminated by the school.
the best practices from this case is that before a school moves an employee to a new position they must include a reassignment clause in the contract. A clear liquidated damages clause must always be included in the contract.
O’Brien v. The Ohio State University (2007)
Jim O’Brien was fired in 2004 for what Ohio State determined to be a material breach of his contract after he failed to inform the school that he gave $6,000 to a foreign basketball recruit after the recruit had signed to play professionally overseas.
A material breach is a party’s failure to perform an element of contract that is so fundamental to the contract that the single failure to perform defeats the essential purpose of the contract or makes it impossible for the other party to perform.
The best practices from this case for a school is that it must understand the reasons they can terminate a coach. Both parties also need to make sure that a clear and unambiguous liquidated damages clause is included so that it makes the termination smoother.
Northeastern v. Brown (2004)
Northeastern head football coach Donald Brown was under contract at the school until the 2007-2008 football season. In Brown’s contract, it stated he would devote all his time to his current employment and would not discuss other employment while at Northeastern. In January of 2004 Brown wanted to speak with another school that was not the University of Massachusetts, but was convinced to stay at Northeastern with a one-year extension. However, just one month later he resigned at Northeastern and accepted the job at the University of Massachusetts.
The best practices from this case are that a school must understand the potential consequences when trying to hire a coach. Also, if a school wants to prevent a coach from leaving to a rival school it should include a non-compete clause.
Vanderbilt v. DiNardo (1999)
In 1990, Gerry DiNardo was hired as the head football coach at Vanderbilt, and after having success, he was offered an two year contract extension by Athletic Director Paul Hoolahan in August of 1994. Hoolahan came to DiNardo after practice and had him sign the extension, but DiNardo would only agree to terms if his attorney Larry DiNardo approved it. Vanderbilt sent the contract to Larry DiNardo but never heard back from him and took it for acceptance of the extension. Then in December of 1994 DiNardo announced he was leaving Vanderbilt for the same position at Louisiana State University. Vanderbilt then sent a letter to DiNardo asking for the liquidated damages that were agreed to in the contract
The best practice from this case is the need for a more formal contract negotiation process. There needs to be an understanding of what constitutes a formal contract extension as well as what determines if the contract extension was accepted or not.
Frazier v. University of District of Columbia (1991)
Bobby Frazier was fired as football coach and then promised a new position two days later, but as never reassigned. But, his contract was not for a certain amount of time which makes him an at-will employee. This means he could be fired at anytime.
The best practice from this case is that hiring a coach as an at-will employee gives the school greater flexibility when terminating the coach’s contract
Best Practices
Include termination clauses and buyout provisions
Increased understanding of what is in the contract
Ensure clauses are written with clear and unambiguous language
Teich is pursuing a masters in sports administration at the University of North Carolina at Chapel Hill. He can be reached at jteich6@live.unc.edu
