I have the 2002 version, with the 2007 addendum to it. I understand that there was another addendum in 2008, which I don't have, so I think the only real change was that the contract was through 2015 and that the total annual salary is $2.3M. The 2007 addendum has $1.8M as salary ($225,000 base, $1,575,000 talent fee) through 2013.
The parties to the contract are JT and the Regents of UC (signed in 2007 by Birgenau, Nathan Brostrom (Vice Chancellor of Admin), and Sandy, as officers of the Regents).
Paragraph 11 of the 2002 agreement states that JT could be terminated even WITHOUT CAUSE (that means even if there is no breach of the contract, bad behavior or wrong-doing) but the "University shall continue to pay Coach for the remainder of the term of this agreement, subject to reductions referenced below . . ." That means if he is fired at the end of the year, you have $2.3M x 3 (2013-2015), which is $6.9M.
What is "referenced below" is a duty on the part of JT to mitigate the pay that comes from Cal [my apologies to someone to whom I said mitigation does not come into play - it does under this contract, it would not if there is a buyout/reformation of the contract]. That means if JT gets another job, the money he gets from the college or pro team would reduce the Regents' obligation dollar for dollar:
So in sum, the Regents (could be via Sandy as officer) can fire Jeff Tedford whenever they want and for whatever reason. However they will have to pay the salary he is owed through 2015 ($2.3M year). But if JT gets another job, whatever he makes will reduce the Regents' obligation dollar for dollar.
All that said, if the parties want to forgo the current agreement, the Regents could negotiate with JT a buyout for an agreed upon amount, where Cal gets a discount on the remainder of the contract, and where JT gets in exchange a more up-front lump sum payment and no offset on his payment from money made in his subsequent employment.
It saddens me to write this but I think it needs to be posted so more people know what is needed to get this done.
The parties to the contract are JT and the Regents of UC (signed in 2007 by Birgenau, Nathan Brostrom (Vice Chancellor of Admin), and Sandy, as officers of the Regents).
Paragraph 11 of the 2002 agreement states that JT could be terminated even WITHOUT CAUSE (that means even if there is no breach of the contract, bad behavior or wrong-doing) but the "University shall continue to pay Coach for the remainder of the term of this agreement, subject to reductions referenced below . . ." That means if he is fired at the end of the year, you have $2.3M x 3 (2013-2015), which is $6.9M.
What is "referenced below" is a duty on the part of JT to mitigate the pay that comes from Cal [my apologies to someone to whom I said mitigation does not come into play - it does under this contract, it would not if there is a buyout/reformation of the contract]. That means if JT gets another job, the money he gets from the college or pro team would reduce the Regents' obligation dollar for dollar:
Quote:
"The parties recognize that Coach has the duty to obtain other employment in mitigation of any damages he may sustain by virtue of the termination of this Employment Contract. It is expressly understood by the parties hereto that any payments so made to Coach will be reduced by any amounts received, or to be received at a later date, by Coach from other sources in and for rendition of services by Coach during the period of time in which Coach, pursuant to this Agreement would have been employed by the University if this contract had not been terminated. In the event Coach enters an employment agreement, or receives compensation during the period of time in which Coach, pursuant to this Agreement, would have been employed by the University if this contract had not been terminated, Coach shall promptly inform the University of the amounts of such compensation."
So in sum, the Regents (could be via Sandy as officer) can fire Jeff Tedford whenever they want and for whatever reason. However they will have to pay the salary he is owed through 2015 ($2.3M year). But if JT gets another job, whatever he makes will reduce the Regents' obligation dollar for dollar.
All that said, if the parties want to forgo the current agreement, the Regents could negotiate with JT a buyout for an agreed upon amount, where Cal gets a discount on the remainder of the contract, and where JT gets in exchange a more up-front lump sum payment and no offset on his payment from money made in his subsequent employment.
It saddens me to write this but I think it needs to be posted so more people know what is needed to get this done.