Neuheisel's new salary

Neuheisel's new contract
Contract extension worth $11.2 million over six years
By: Richard Linde, 5 September 2002

According to an article written by Bob Condotta of the Seattle Times and to an AP report, head coach Rick Neuheisel of Washington has signed a six-year extension to his current contract. The extension could bring his salary to as much as $1.87 million per annum. The contract runs from January 1, 2002 to January 1, 2008.

The provisions of the old contract, worth $1.2 million per year with incentives bringing it to as much as $1.4 million per year, are still in place. The new contract gives him a loan of $1.5 million, which is to be spread out over the next 6 years. During the six years, he is to pay 5% interest on the loan twice per year.

Should he agree to a five-year extension beyond 2008, which would run until 2013, the deal provides Neuheisel with a $1 million bonus. Altogether the contract is worth $11.2 million dollars over the next six years, an average of $1.87 million per year providing all conditions are met (see the Table below).

If he should leave the university on his own volition before the contract expires, he would have to repay the $1.5 million loan to the university. In addition, a $600 thousand buyout clause is in place, which he would owe to the university. The old contract called for a $100 thousand buyout.

Should he accept the 5-year contract extension in 2008, but leaves before 2013, he would have to repay portions of the $1 million bonus, at a rate of 20% for each year left in the contract. For instance, should he leave in 2012, fulfilling 4 years of the contract, he would repay the university $200 thousand for the remaining year.

Barbara Hedges, Washington athletic director, approved a pay raise for the assistant coaches in November 2001. Keith Gilbertson and Tim Hundley, offensive and defensive coordinators, each make $170,000. The other seven full-time assistants average $118,000. The nine full-time assistants are on two-year deals.

The table below summarizes Neuheisel's new salary contract. The data was taken from articles written by Bud Withers [Withers] and Bob Condotta [Condotta1, Condotta2] of the Seattle Times. Any factual errors appearing in the table are my own and should not be attributed to the Times.

Table 1. Nueheisel's Salary.

Base Salary	$425,000
Annuity	$150,000
Housing allowance	$200,000
KOMO, Fox Sports NW, Nike, Husky Fever, Verizon.	$385,000
Leased car (car coach program)	$20,000
Family Travel Allowance	$25,000
Country Club Dues	$5,000
Courtesy Car Allowance	$2,000
6-year loan ($1,500,000)	$250,000
Extension bonus ($1,000,000)	$166,666
Total	$1,628,666

Academic performance incentives
Graduation rate of 75%	$60,000
Additional compensation, 90% or higher	$40,000

Bowl Incentives
2001-2002 Options (maximum $150,000)	$150,000
Non BCS bowl $40,000
BCS bowl $100,000
National championship bowl $150,000

Total	$1,878,666

References:

(1) [Withers] Withers, Bud, "Notebook: Neuheisel's salary goes up 35 percent to $1.21 million," The Seattle Times, September 4, 2001.)

(2) [Condotta1] Condotta, Bob, The Seattle Times, "Rick Neuheisel's new deal worth $11.2M," 4 September 2002.

(3) [Condotta2] Conotta, Bob, The Seattle Times, "Huskies making selves at home, " September 5 2002

(4) [Ziegler/Graney]. Ziegler, Mark, Graney, Ed, "Pigskin Proliferation," SignOnSanDiego.com, The San Diego Union-Tribune, 13 November 2001.