Buyout Clause at Center of Controversy at Kent State

Jun 3, 2011

Kent State University has sued former head basketball coach Geno Ford, seeking $1.2 million in damages, or the full amount provided for in Ford’s contract if he left KSU and took another job elsewhere.
 
When Ford signed a contract extension after the 2009-10 season, he agreed to the buyout clause, which required him to pay KSU the sum equal to his base and supplementary salary multiplied by the number of years remaining on the contract. The clause was triggered when Ford accepted a job last month with Bradley University.
 
KSU sued, charging that it was owed the $1.2 million in liquidated damages, since Ford had four years remaining on his contract at a total annual salary of $300,000.
Sports lawyer Daniel B. Fitzgerald explained on his Connecticut Sports Law website recently that enforcing a buyout clause can be “a challenge.”
 
“A buyout clause is essentially a liquidated damages clause,” Fitzgerald wrote. “A liquidated damages clause is only enforceable if the clause requires the coach to reimburse the school for the reasonable damages caused by the coach’s departure. The clause cannot be punitive.”
 
KSU may have difficulty proving that Ford’s departure has had devastating consequences, since it promptly promoted Ford’s top assistant, Rob Senderoff, and the program did not lose a single recruit.
 
Ford has also gone public with a statement stating that everything (with his departure) was handled professionally and appropriately. However, some have questioned this since KSU officials and players were reportedly not told of his decision to take the Bradley job until Bradley issued a press release.
 
KSU also may be frustrated with the fact that it has lost four head men’s basketball coaches in 11 years.
 
Bradley, for its part, is positioning itself as having followed proper protocol.
 
“Bradley University is respectful of employer-employee relationships — including those involving current and former employees — and has acted accordingly,” Athletic Director Michael Cross said in a statement. “As testament to that, Bradley and Coach Ford handled the hiring process in a straightforward and professional manner with the clear consent of Kent State University.”
 
The school went on to call Kent State’s lawsuit “completely unnecessary.”
 


 

Articles in Current Issue