Here is a copy of the memorandum of understanding between the Georgia Tech Athletic Association and new men’s basketball Brian Gregory. This is a cut and paste version of the document.
Among the things you may be interested in: he will receive a base compensation of $1 million per year, with incentives. Dayton is a private school and not subject to Freedom of Information Act requests, but he reportedly had a contract valued between $750,000 that would have eventually totalled $1 million. His annual salary is less than Paul Hewitt’s. Tech athletic director Dan Radakovich said reports that Paul Hewitt’s buyout of $7.2 million hampered their search process were inaccurate. He had a figure in mind for what he wanted to pay for a quality coach and that’s what they agreed to.
Tech is paying $350,000 toward the buyout of his Dayton contract.
There is a buyout in this contract. Unlike Hewitt’s total, Gregory’s would decline by a significant percentage in Year 3 and then again in Year 5.
Here is a copy of the document:
March 28, 2011
Name: Brian Gregory
RE: Memorandum of Understanding Offer
Head Men’s Basketball Coach – Georgia Institute of Technology
It is with great pleasure that I offer you the position of Head Men’s Basketball Coach for the Georgia Institute of Technology (”Institute”), effective April 1, 2011. This Memorandum of Understanding, which presents the material terms of our offer, will be incorporated into a formal employment contract with the Georgia Tech Athletic Association (”ASSOCIA nON”) for execution at the earliest possible date. Your acceptance of this offer will constitute a binding agreement between you and the Institute.
The employment contract will be for a term of six years.
Your compensation as Head Men’s Basketball Coach will be the following:
• Annual base compensation of $ 1,000,000, with no escalating value for at least the first two years:
Apparel & Equipment $50,000
GTAA Public Appearances $50,000
• Incentive compensation for achieving athletic performance goals as follows:
o ACC Champion (includes tie) =$ 75,000
o ACC Tournament Champion = $ 50,000
o NCAA Tournament Appearance = $ 25,000
o Each NCAA Tournament Win = $ 25,000
o Final Four Appearance = $100,000
• Incentive compensation for achieving academic performance goals as follows:
o Graduation Success Rate equal to or greater than 70% = $ 75,000
o APR Rates (payment amounts not cumulative)
• Greater than or equal to 930
• Greater than or equal to 940
• Greater than or equal to 950
Maximum incentives earned in anyone fiscal year cannot exceed $500,000. No incentive compensation will be earned/paid for a year if contemporaneous penalties (loss of scholarships) are assessed that year as a result of Academic Progress Report failures during your tenure as Head Coach.
• Full standard benefits on the same terms as provided by the Institute to all professional employees, with contributions and benefit amount based upon the base salary where relevant.
• Reimbursement for your household moving expenses in accordance with Institute policy and state law.
• $1300 monthly vehicle stipend and a mutually agreed upon Country Club Membership.
Among other terms, your employment contract will include the following:
• Provisions prohibiting you from receiving benefits or compensation other than as described above from any other source without prior written agreement. The Institute shall permit you to conduct athletic camps with Institute support in accordance with Institute and Athletic Department policies; however, the financial risk and benefit will remain with you.
• Provisions stating that if you resign, or if the contract is terminated for “good cause” (see Addendum “A”), the ASSOCIATION shall not be liable for any payments or benefits after the date of termination, except those earned prior to termination.
• Provisions allowing the ASSOCIATION to terminate your employment without “good cause” that would require the following payment to you based on a percentage of the remaining value of base compensation under the contract:
100% of Year 1
plus 100% of Year 2
plus 75% of Year 3
plus 75% of Year 4
plus 50% of Year 5
plus 50% of Year 6
Payments would be made monthly over the period of years that were remaining under your contract (”Payout Period”) at the time of termination, and would be offset by 50% of any compensation you are paid or contract to receive during that
• Provisions in which you agree not to seek, consider, or apply for other positions without prior notice to the ASSOCIATION. Additionally, a buyout of$750,000 if you resign before the end of 2012, and a buyout of $300,000 if you resign at any point thereafter.
• Provisions in which the ASSOCIATION, upon invoice, will pay the University of Dayton or its designee up to $350,000 towards the release of obligations for Coach Gregory.
• Provisions in which the ASSOCIATION agrees to review the contract with Coach Gregory within 90 days of the end of the 2012-13 season.
• Provisions setting forth your duties as Head Men’s Basketball Coach (see Addendum “B”).
• The provisions of this Memorandum of Understanding are subject to the certification of Brian Gregory, as evidenced by his signature below, that:
• (a) The information and credentials listed and described on the resume attached as Addendum “c” and in any other application materials for this position are true and correct and all respects; and
• (b) There are no past, current or pending felony charges against Brian Gregory that would preclude my employment with the Georgia Institute of Technology or the Georgia Tech Athletic Association;
While these terms are contingent upon our executing an employment contract, I trust that every reasonable effort will be made to mutually conclude that process within 60 calendar days of your start date. However, this Memorandum of Understanding will serve as the contract if a formal contract is not signed within 60 calendar days. It is with great anticipation and enthusiasm that I offer you the position of Head Men’s Basketball Coach at the Georgia Institute of Technology. Assuming that you are amenable, please indicate your acceptance and agreement to these terms by signing below.
I have every confidence that you will lead our Men’s Basketball program with integrity and pride, and I look forward to welcoming you as a member of the Yellow Jacket family.
There’s more that I won’t include.
– Doug Roberson, AJC