Everything You Need to Know about the Les Miles Golden Parachute
As you know, Les Miles was on the hot seat. After beating Texas A&M, however, the LSU Athletic Director said that he would not fire Les Miles. Here’s everything you need to know about the contractual issues behind any possible termination of Les Miles.
How Much Would LSU Have to Pay Les Miles If He Were Fired?
In 2005, Les Miles signed his first contract with LSU. That contract was only for 4 years, and stated that LSU would pay out Les Miles’s remaining salary in the event of a termination without cause. That would have meant LSU paying out $1.8 million in 2007 and 2008, and $1.825 million in 2009 and 2010.
On January 1, 2013, however, after LSU had several successful seasons, the school provided Miles with a large extension, extending his contract until December 31, 2019. This amendment also specified the amount that Miles would get paid in the event that the school terminated him without cause.
- Prior to December 31, 2015: $15 million
- January 1, 2016 to December 31, 2017: $12,900,000
- January 1, 2018 to December 31, 2018: $8,600,000
- January 1, 2019 to December 31, 2019: $4,300,000
If LSU fired him immediately, Miles would have been entitled to $15 million.
Would LSU Really Have to Pay Les Miles All This Money?
Probably not, because Miles has to mitigate his damages.
The contract states that he would get paid in “equal installments over a period of time equal to twice the amount of time then remaining in the term of this Agreement.” For example, assume that Miles was fired on January 1, 2016. This means that he would get paid $12,900,000 in equal monthly installments over the next eight years. Regardless, $12.9 million is still a hefty chunk of change.
Plus, any money that he would he earn in the next eight years would reduce the amount that LSU would have to pay him. For example, if he were hired as another coach (and he surely would), the money paid to him by the new school would reduce the amount the LSU would have to pay him. For example, using the example above, if he were fired on January 1, 2016, but earned $6,900,000 over the next eight years as a coach at another school, LSU would only have make up the difference, or pay him $6 million.
Could Coach Miles Simply Not Work and Collect All the Money from LSU?
Again, probably not. This is because the contract specifically says that Les Miles has a duty and obligation to find another coaching position. If he tries to get another job, but doesn’t, that’s one thing. But he simply cannot sit on his couch collecting his paychecks from LSU.
Can LSU Fire Coach Miles for Cause?
If LSU fires coach Miles “without cause,” the school has to pay him. But if the school fires him “for cause,” the school does not owe him one penny. Could LSU fire Coach Miles for cause?
Almost surely no. As defined in most agreements (including the one with Coach Miles), firing a coach for cause does not mean that the coach performs poorly. It has to be something much worse than simply poor performance on the field. We’re talking conviction of a felony, fraud, gambling on NCAA games, lying to LSU, those sorts of things. There’s been no allegation of any of these, and, thus, a termination “for cause” is not realistic.
Walt says
Very informative and educational.
Thanks for the clear explanation.
Richard Camarata says
Les Miles first season at LSU was 2005, not 2006. Also, Nick Saban coached at LSU for 5 years, not 10 years. He coached at LSU from 2000-2004.
Thank you,
Richard
Daniel Kalish says
Thank you – the website has been corrected with the accurate information.
— Dan Kalish
Ross DeNicola says
Excellent explanation. I wish more people in this area would read, and hopefully, understand your explanation. If Les could get away from the Bo Schemblecher type offense, and get a significant improvement in the quaterback play, more of those elusive wins would be coming LSU’s way.
Joe says
So, what you are saying if Richt’s contract is similar, Georgia isn’t likely to come out of pocket at all???
Harold LaSalle says
very informative
timothy Giles says
Led Miles is a great coach and LSU needs better administrators, I hope our recruiting will recover and I think it will .
Chip Morrison says
Nice article boiling down the facts. Needless to say, Les Miles has a good contract and would profit regardless of the situation. But the LSU Athletic department would have to pay a lot of money including what the new coach also receives. So it would have been considerable amount of money probably a net approaching $20,000,000. And the LSU AD came to his senses and realized what a dumb thing to do. After Les Miles is about the best coach LSU has ever had and unlike Paul Detzel refused to leave LSU. Detzel returned, was LSU AD but never ever again an LSU coach. Detzel lived out the rest of his life in Baton Rouge.
Now how about replacing the present LSU AD for his rash behavior. Hummmm. He does not have such a wonderful contract and makes considerably less money, thus easily replaced. His judgement is now in question.
Chip Morrison
Class of ’63
William C. Morrison, Colonel, USAF (RET)
vincent michell md says
Thank you for the explanation. And thanks for putting it words that those of us without a law degree can understand! Well written and very much appreciated.