Incentives for the Coach

It’s a bummer to hear that Coach Tad Boyle’s salary for taking the Buffs to the Big Dance this past season was only $165,830. That is only three times as much as the average for Colorado wage earner, but it is a pittance compared to coaches at the country’s top programs.

After his first season at CU, Boyle was recruited to coach elsewhere, but declined to stay at CU – for a meager salary of $165,000. There is more to the story – his total compensation package includes incentives.

According to the Daily Camera (March 15, 2012) there are six people on the Boulder campus who have multi-year contracts. Tad Boyle is one of the six.

The Board of Regents has directed campus officials to structure these six contracts in a manner that focuses on incentives, rather than large salaries. This is similar to salesmen who are paid commissions or executives who receive other types of performance incentives. In other words, the coach gets a cut of incremental revenue he/she is able to generate for the school. When viewed from that perspective, most will find the concept of his total compensation package to be more palatable.

The breakdown of Boyle’s salary follows:
Base – $165,830
Public relations – $180,000
Fundraising – $96,000
Sponsorship support – $108,000
Summer camps – $35,000
Country club – $6,480
Academic performance incentive – $34,000 in 2012 ($68,000 other years)
Welfare and development incentive – $33,000 in 2012 ($66,000 other years)
Outreach and reputation incentive – $33,000 in 2012 ($66,000 in other years).
The total package is worth $691,310.
This is a lot more than $165,000, but still well below the total for coaches at other major programs.

The breakdown of Boyle’s incentives follows:
15 regular season wins – $30,000
17 regular season wins – $20,000
19 regular season wins – $30,000
Pac-12 tournament semifinals – $75,000
Pac-12 tournament win – $30,000
NCAA tournament appearance $105,000.
These incentives, totaling $290,000, were earned by Boyle this past season.

Other incentives that were available included:
NCAA second round appearance – $30,000
NCAA third round appearance – $30,000
NCAA fourth round appearance – $30,000
Final four appearance – $105,000
National championship – $750,000.

A lackluster season, with 15 wins, will result in a $2,000 bonus per game won. If two additional games can be won, or 17 wins, then $10,000 is awarded for each of those two wins. The value of a game won in the Big Dance is $30,000 per game.

If you were the coach, how would you deal with the pressure of coaching a game that included a $2,000 bonus if you won? $10,000 for each game won? $30,000 for each game won? or $750,000 to win the national championships?

By offering incentives, colleges are able to contain and manage their costs. At the same time, the likelihood of transgressions is much greater when results are tied too closely to incentives. For additional information take a look at USA Today. They typically prepare a database of coach’s salaries and incentives in conjunction with March Madness.

 

What About Academic Performance Incentives?

Kyle Ringo, sports writer for the Boulder Daily Camera, recently wrote an intriguing editorial on the local football scene, “McElwain Deal Could Pave Way for Raise for Embree” (December 14, 2011).

A short replay for those not familiar with the situation…

Jon Embree was hired to rebuild the University of Colorado football program at an annual salary of $725,000, plus on-field incentives. This is the lowest salary in the PAC-12. Embree bleeds Black and Gold and is well qualified despite his lack of experience as a head coach. He has surrounded himself with a qualified team of assistant coaches and has rekindled enthusiasm for the sport, CU Athletics, the university, and fundraising efforts.

Jim McElwain was recently hired to coach the Colorado State Rams, a school that was successful in a weak conference under Sonny Lubick. McElwain will be paid $1.3 million to try to put CSU back on the football map.

Now for the intriguing part of Ringo’s editorial…
McElwain has a $200,000 incentive in his contract related to his players’ academic performance.

The focus of the editorial was $$ and it did not address the specifics of McElwain’s academic performance incentive nor did it look at some of the questions surrounding the concept. Some questions that might be posed are presented below.
• Participation on a D1 athletic team is time consuming. As a result, athletes have access to tutors and in some cases are required to use them. Given that level of support is it is appropriate for an academic incentive to be offered?
• Most special groups, including athletic teams, include students who perform above the average in the classroom. If that is the case, then why is an academic performance incentive necessary?
• Are academic performance incentives based on a student’s improvement or his grades? This question is relevant because some athletics lack strong academic backgrounds for socioeconomic or other reasons.
• Former CU basketball Coach Jeff Bzdelik stated publicly it was difficult to produce a quality basketball team at CU given the universities high academic standards. f this is the case, how do you establish an appropriate academic standard for football and basketball?
• Would an academic performance incentive require students to perform at a certain level in meaningful classes that develop knowledge and skills that will allow the student-athletes to get a job when they graduate?
• How many coaches in Colorado’s colleges and universities have a clause in their contract that awards them for their students’ performance in the classroom?
• Does Embree have a academic incentive for the classroom performance of his players? If not, then why? If so, then why wasn’t it discussed in Ringo’s article?
• Do physics or accounting professors have similar performance  incentives for their students? This is a rhetorical question. Grade inflation has become so rampant in some universities, CU included, that policies have been set in certain disciplines, such as the Leeds School, that establish quotas that limit the number of A’s and B’s in a class.
• Is an academic performance incentive meaningful, or is it just a clause placed in the contract to pacify the “jock-haters.”

Both athletics and academics are important to our colleges and universities. It is truly an interesting challenge to find a balance between the two.