Big Red Business: The cost of a basketball coaching change

If Nebraska decides to part ways with basketball coach Tim Miles and his three top assistants at the end of this season, what would it cost?

The buyout bottom line: About $3.287 million.

Of that total, Miles would receive about $2.52 million, according to the terms of his contract that runs through March 2021. He would be paid monthly installments of $105,000 over those two years.

Miles’ annual base salary is $2.50 million.

His three assistants are under contract through April 2020. They would also be paid monthly installments for the remaining time of their contract. The payments would be pegged to their base salary and the value of university-provided employee benefits, according to their contracts made available by the athletic department.

Michael Lewis is the highest-paid assistant, earning an annual salary of $256,200. Armon Gates earns $256,000, and Jim Molinari’s base salary is $255,267. A benefits value breakdown was not listed in their contracts.

Miles, Lewis, Gates, and Molinari received one-year contract extensions at the end of last season, though their pay remained unchanged.

As is typical in coaching employment contracts, the payouts to Miles and his assistants could be reduced if they land new employment. In those cases, contract language allows the athletic department to make lump sum buyout payments for a reduced amount of money based on the salary at their new job.

Miles, 52, is in his seventh season as Nebraska’s head basketball. Prior to this year, he had only two winning seasons, and has an overall record in Lincoln at 112-110, following losses to Penn State and Purdue this week.

Since taking over from Doc Sadler in 2012, Miles has guided Nebraska to one NCAA tournament appearance and one NIT bid, while playing before sold-out crowds at Pinnacle Bank Arena. Both times in the post-season, Nebraska lost in the opening round.

At this stage of the basketball season, it is pure speculation whether Miles and his staff will be retained or let go. Nebraska began the year ranked in the top 25, with a veteran starting line-up and high expectations of an NCAA post-season tournament bid.

But after starting 13-3, with impressive victories over Creighton, Clemson, Seton Hall, Oklahoma State and Indiana, Nebraska has won just twice in its last 12 games. Those were back-to-back wins at Pinnacle against Minnesota and Northwestern.

It also hasn’t helped that key senior starter Isaac Copeland was lost to a season-ending injury during this recent losing stretch.

Nebraska is 15-13 overall, and 5-12 in conference play.

Miles addressed the buyout speculation in a podcast interview earlier this week with college basketball writer Jeff Goodman of WatchStadium.com.

In the interview, Miles said that “if they fire me, they’re still going to pay me. I’m still a millionaire. I’ve got that going for me.”

The comments -- which Miles described as an attempt at humor as part of a broader conversation about how he had worked his way up the coaching ranks -- drew some criticism mostly from fans on social media.

Miles tweeted an apology Thursday: “ Earlier this week, my (sarcastic) attempt at humor during a podcast failed. Anyone who knows me understands that I got into coaching and remain a basketball coach for reasons beyond money. I apologize to anyone offended or taken aback by my flippant remark.”

Athletic director Bill Moos has publicly stated he will wait until after the season before evaluating the future of Miles and his program. And amid the speculation about whether Miles will be retained or let go, Moos recently urged the head coach to not listen to any of the noise.

Ironically, at the end of February, the athletic department will no longer have any severance payouts on the books. The only remaining payment -- to former head football coach Bo Pelini -- will be made by the end of the month, the athletic department confirmed.

Pelini, who was let go after the 2014 season, has been receiving monthly installments on what was valued as a $6.4 million buyout.

The university no longer owes money to former football head coach Mike Riley, who was fired after the 2017 season, nor any of his staff. Riley was paid about $6.3 million. Former athletic director Shawn Eichorst, who was fired in fall 2017, received a $1.7 million buyout that has also been paid in full.

In the 2017-2018 fiscal year, the athletic department listed nearly $13 million in severance-related expense. Even for an athletic program that operates in the black, firing a coach has huge financial implications. There’s the buyout, then the aftermath of a coaching search.

So far this season, only one coach from a high-profile program has been let go. In late December, UCLA fired men’s basketball coach Steve Alford. He was earning $2.6 million a year. Terms of his buyout have not been fully disclosed, although the athletic department said it had the funds to cover the contract liquidation.

Several other basketball coaches are on the hot seat heading into the home stretch of the regular season, which will make for an active post-season coaching carousel.

Steve Rosen writes about the business of sports for Huskeronline.com Questions, comments, story ideas? Reach Steve Rosen at sbrosen1030@gmail.com.