BUYOUT BEWARE

By Scott Daniels, Esq., NFL Draft Bible

It's known as the domino effect. Each year, as the college football regular season comes to an end, prominent college football head coaches and qualified no-names are lured away from their current programs for more lucrative jobs at prestigious institutions.

While most coaches leave for greener pastures, colleges and universities have only one line of defense when their head football coach chooses to jump ship; The Buyout Clause.

The buyout clause operates as a penalty that is to be levied on the head coach if they do not fulfill the duration of the contract. The school and the coach agree on a specific "buyout number" and if the coach leaves to take the reigns somewhere else, that coach must pay the school the agreed upon buyout number.

LSU's Les Miles had quite an interesting buyout clause in his last contract. It stated that if he were to leave LSU to become the head coach of Michigan - and Michigan only - Miles would have to pay LSU $1.25 million.

Although Miles was the frontrunner for the Michigan job, he ended up re-signing with LSU. No word as to whether or not the same buyout clause remained in his new contract.

Another buyout clause hit the news wires a few weeks ago when Rich Rodriguez, former head coach of West Virginia, accepted the offer to become the new head coach of Michigan.

Unlike some other dishonorable coaches, Rodriguez left his former coaching post with class and dignity. However, that did not prevent West Virginia from suing Rodriguez in an effort to collect the $4 million he now owes the school for breaking his contract.

West Virginia's buyout clause requires Rodriguez to pay the school $4 million over a two year period, in which 1/3 is due 30 days after employment termination. Rodriguez's resignation was effective December 19, 2007. Therefore, according to the buyout clause, Rodriguez has until January 18, 2008 to pay West Virginia approximately $1.32 million.

Even if we assume the buyout clause is valid, Rodriguez hasn't technically done anything wrong yet. He still has until January 18, 2008 to satisfy the buyout clause. So how is West Virginia able to institute a lawsuit when they have yet to be harmed?

Contract law, while somewhat archaic, is a beautiful thing. It's one of the few areas of the law that allows one side to sue and seek legal relief before they have actually been harmed.

Under the common law, a contract can be breached if one party makes it clear that he or she does not intend to perform the contract duties. While there have been reports - or should I say rumors - that Rodriguez is expected to dispute the buyout clause, only Rodriguez himself truly knows if he intends to abide by the agreed upon contract terms.

Essentially, West Virginia is under the impression that Rodriguez is not going to pay up. Could they have waited to sue until after the initial payment is due? Sure. Does West Virginia really need the $4 million owed to them? Absolutely not.

This lawsuit is not about enforcing a buyout clause. It's not about money either. It's about a school who wants revenge on their former head coach.

In West Virginia's case, the famed English historian and author Edward Gibbon said it best; "Revenge is profitable."