Contracts, Coaches

The employment contracts of coaches follow the laws and regulations that govern all employment relationships. Unlike players, coaches are not members of unions, and there are not standard or uniform coach contracts across leagues. Coaching contracts are negotiated individually and often contain clauses to define the resolutions to a variety of possibilities if the contract is not completed. In professional team sports compensation for head coaches is lucrative, but is generally substantially less than the annual salaries of star players. The head coaches in the highest revenue-generating college sport programs, primarily football and men's basketball, have contracts authorizing compensation similar to their professional sports counterparts.

In contrast to player contracts, coaching agreements are noteworthy because, although often long-term or multiyear agreements, they are commonly terminated before having run their complete term. Contract termination is a double edged sword. It is very common for the employer to dismiss a coach under contract when the coach's team is performing below expectation. Likewise it is not unusual for a successful coach to accept a more lucrative offer while under contract. The latter situation is most common in intercollegiate (NCAA) sports. Public contract law specifies the legal framework for dealing with the breach or nonperformance of contracts. However private law, as dictated by the contingencies laid out in the contract itself, is increasingly more likely to determine the settlement of prematurely terminated contracts.

When a coach is terminated by his employer before the term of the contract is complete (club or university athletic department) the termination is specified as being “with cause” or “without cause.” Coaches who are fired simply because the employer is not satisfied with their performance are deemed as terminated without cause, and unless otherwise specified by the contract, are entitled to the compensation due them for the remainder of their contract. Such terminations are routine in professional and college sports as many coaches are fired, even in mid-season, when their teams fail to perform to expectations. A coach fired with cause means that a violation of the contract has occurred, and no further compensation is due. Coaching contracts typically have a clause that specifies that conduct, comportment, compliance with league or NCAA rules, etc. must be maintained or the coach is subject to termination with cause. The firing of a coach because of a NCAA rules violation or for personal misconduct, such as in the case of University of South Florida football coach Jim Leavitt in 2010 for striking a player, is an example of a “with cause” termination. (Leavitt filed a wrongful termination suit that was settled out of court in January 2011.)

Coaches who leave their contracts early to take a more lucrative position may be sued by their employer for breach of contract. This is a more frequent occurrence in college sports as professional leagues have “no tampering” rules, which discourage teams from negotiating with a coach under contract with a competitor. Courts will not enforce “specific performance” for personal service or employment contracts, meaning the coach cannot be forced to remain with, or go back to, his current employer. A court-ordered injunction, however, can proscribe the coach from performing his duties for any other employer other than the current holder of his contract. Injunctive relief thus offers the same result, in that if the coach desires to stay employed he must honor the remainder of his contract. Notwithstanding, and although injunctive relief is often sought, a monetary settlement is viewed as the most efficient choice as it allows the coach to migrate to [Page 285]the employer that most values his services, while at once allowing the aggrieved party economic compensation to offset his or her loss.

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