Structuring College Coaches' Employment Agreements: Important Clauses And Issues In Agreements - (Part One)

An institution's athletics program should be aware of some important

clauses, provisions and issues that are normally found in a coaching employment

agreement.

Duties and Responsibilities of the Coach

An employment agreement should include a general duties and responsibilities

provision. The employment agreement also must include a provision mandating that

the coach abide by and comply with NCAA legislation, interpretations of NCAA

legislation, intercollegiate athletics conference rules and institutional

regulations relating to the conduct and administration of the athletics program.

Beyond the general responsibilities and best efforts clause, the employment

agreement should list specific responsibilities.

The institution will want, in addition to a list of specific duties, a clause

indicating that the coach will perform other duties incident to and consistent

with the position of coach as determined by mutual agreement between the

institution and the coach. From the institution's perspective, listing

specific duties is advantageous, especially in attempting to enforce the

termination provisions for just cause (i.e., failure to perform the duties and

responsibilities specifically assigned).

Automatic Renewal or Rollover Provisions

Rollover provisions extend the term of an employment agreement for an

additional year if the university is satisfied with the coach's performance

after the completion of each season. Thus, a rollover provision extends an

agreement so that the remaining term of the agreement at the commencement of

each succeeding season is the same as the original term of the agreement.

Rollover provisions have at least four drawbacks to an institution. First, an

institution's notice of a decision not to extend the agreement for the extra

year could be considered by courts to be a current breach of the agreement,

which immediately entitles the coach to severance pay or some other remedy. To

avoid this presumption, the agreement must expressly state the parties' mutual

intention to end the employment relationship at the close of the employment

term. Second, rollover provisions are typically poorly drafted. Third, rollover

provisions require the institution to give years of notice of its intention to

let the agreement expire. Finally, rollover provisions are typically one-sided.

While rollover provisions prevent the institution from removing the coach

without paying for the balance of the term, agreements containing such

provisions tend not to guarantee the institution that the coach will not

terminate the agreement and coach at another institution.

Some state-supported institutions are prohibited from entering into

agreements and contracts that bind the institution for more than a period of one

year. An institution should consult with legal counsel about the existence and

applicability of any such law in the institution's state.

Reassignment Clause

A reassignment clause allows the institution to remove an individual as coach

without terminating the employment agreement by assigning the coach to a new

title and different duties. Often, such a clause will contain a statement that

the coach is not to be assigned to any job that is not consistent with the

individual's education and experience.

If the coach refuses to accept such reassignment, the institution may attempt

to terminate the agreement pursuant to the termination provisions. In these

situations, the institution must avoid an accusation by the coach that he was

constructively discharged by such reassignment. The institution should shift the

burden of refusing...