Million strings knot Nutt deal
Posted on Tuesday, November 20, 2007
FAYETTEVILLE — If Houston Nutt and the University of Arkansas part ways after this season, Nutt has a vested interest in how the severance takes place.
UA officials as well as Nutt and close associates maintain that no decision has been reached regarding his future in Fayetteville despite widespread Internet reports Friday and Saturday that quoted unnamed sources saying Nutt would not return for 2008. Nutt said after Saturday’s 45-31 victory over Mississippi State in Little Rock that he expected to meet with incoming Athletic Director Jeff Long for an evaluation some time after Arkansas concludes its regular season with Friday’s game against No. 1 LSU in Baton Rouge.
Nutt would stand to lose more than $ 2 million in deferred money if he resigns from the job he has held for the past 10 years.
Nutt would also owe the university a $ 500, 000 buyout for breaking the terms of the contract, according to his employment agreement.
But if the UA fires Nutt, he stands to make more than $ 4. 5 million, minus mitigation for future earnings once he gets another job.
Nutt will collect all of the deferred compensation — roughly $ 2. 5 million plus accrued interest — as well as monthly payments on his base salary of $ 329, 644 per year. The funds for the deferred portions of Nutt’s agreements have already been placed into escrow accounts as written in his contract.
Nutt has entered into three deferred compensation plans with the Razorback Foundation, the private, fund-raising arm of the athletic department.
The first plan, started in 1999, has deposited $ 1. 35 million into escrow for Nutt. If he coaches at the University of Arkansas through July 1, 2008, he would be guaranteed $ 2 million from that agreement.
The second deferred compensation plan was entered into in 2002 and Nutt would have already had $ 600, 000 deposited into escrow on that plan. According to the agreement, Nutt could have already had access to $ 150, 000 of that money.
The third plan, which Chancellor John White called “a bonus for Coach Nutt’s sustained and uninterrupted service as Head Football Coach” and incentive for him to remain in the position, was initiated after Nutt turned down the head coaching job at Nebraska following the 2003 season. That bonus was written up as a one-time payment that escalates with each year of service by Nutt.
It is currently worth $ 1, 106, 687, though Nutt would forfeit it, and the other deferred money, if he resigned to take another heading coaching job at the college level or in the NFL or was terminated for cause.
Nutt, 50, was given a contract extension through 2012 after leading the Razorbacks to the SEC Western Division championship and a 10-4 record last season. He has a 74-48 record in his 10 seasons at Arkansas.
Nutt was asked on his Monday teleconference if he even wanted to come back to Arkansas after the strife he had been through the past season.
“I addressed that Sunday,” Nutt said. “You just get tired of being in ‘rumors’ and ‘rumors of’, ‘there’s no truth to that,’ ‘ they’re making it up saying he’s already resigned.
“ I really don’t want to spend any more time answering questions on that subject. I want to spend my time getting this team ready to play the No. 1 team in the country.” Arkansas has also given threeyear guarantees to coordinators Reggie Herring and David Lee, which would carry through early 2010. But Herring’s salary of $ 350, 000 per year and Lee’s salary of $ 300, 000 per year would be mitigated by future employment at another university.
The same would be true for the other assistant coaches, all of whom have two-year agreements in place that would carry through next season, with the exception of receivers coach Alex Wood. Wood’s agreement is up after this season.
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