The major points of Kirby Smart’s employment agreement with Georgia were agreed upon and announced when he signed a memo of understanding shortly before stepping onto the podium to be named the Bulldogs’ new coach in December.
At that point, his deal looked remarkably similar to that of his predecessor Mark Richt.
But six months later, the contract Smart signed shows some subtle differences in the employment agreements for the two coaches. And some not so subtle.
Smart’s contract — executed in late May — was turned over to The Atlanta Journal-Constitution this week in compliance with an opens-record request.
The biggest difference is Smart’s contract includes the controversial “conduct and ethics clause.” That condition was a major sticking point for Richt and his representation after he agreed to a raise and new contract in January 2015.
In fact, Richt never signed that deal. So technically he operated under the guidelines of the contract he signed in 2012. Ultimately, though, UGA honored the handshake agreement and paid Richt based on the agreed-upon increased compensation — $4 million – when it fired him Nov. 29.
But while Richt never signed off on that clause, Smart did.
It is essentially a disciplinary clause and it is found in the compensation section of Smart’s new contract. It gives Georgia Athletic Association the right to withhold pay from the head coach in the case of a material violation of “one or more of the duties, obligations or expectations … that do not rise to a level warranting termination.”
Call it the “Jack Bauerle Clause.” The legendary swim coach was indefinitely suspended and his pay and bonuses frozen in 2014 while his program was under NCAA investigation for providing extra benefits for a star swimmer. After those charges were substantiated, Bauerle was ordered to repay more than $100,000 in legal fees the athletic association paid to defend the charges.
Financial penalties previously were not spelled out in any coaches contracts. But now they are. Going forward, it is “standard operating procedure” for all of the Bulldogs’ head coaches, according to Athletic Director Greg McGarity.
“I’d just say that events that occur around the country often lead to changes in contracts everywhere,” McGarity said. “Things have to be adjusted all the time, not only here but around the country.”
So Smart’s contract now states that UGA has “the right to withhold or reduce performance bonuses … and other compensation payable to Smart … by a maximum of 25 percent for up to 12 months.” Furthermore, it states that the athletic association can recommend suspension “with or without pay” for up to one year and recommend that the University “take other disciplinary action.”
Another major difference come in the area of performance bonuses.
The maximum Smart can earn in bonuses for winning SEC and national championships — $1.6 million — is double what Richt’s last deal allowed ($800,000). However, McGarity said the same breakdown was included in the deal that Richt never signed.
Also, the buyout structure is markedly different for Smart than it was for Richt.
Smart would owe UGA one year’s salary, or $3.75 million, if he resigned after this year, then it is prorated each year thereafter, from $3 million in Year 2 to his base salary of $400,000 in 2021, the final year. Conversely, the Bulldogs would have to pay Smart $13.5 million if they fired him after this season, $10.8 million in 2017, $7.05 million in 2018, and so on. UGA had to pay Richt just $4 million, or 25 percent of his total deal, when it dismissed him.
Meanwhile, the narrative has been that Smart is making fewer public appearances. In reality, according to the “public relations obligations” section of Smart’s contract, he will do more PR. However, his requirements are oriented more toward endorsement and fundraising opportunities than those of a pep-rally nature.
Like Richt, Smart must also make “no fewer 12 unpaid personal appearances” before Bulldog Clubs throughout the Southeast and “a reasonable number of appearances” on the Bulldog Hotline and the coaches’ many other media platforms. However, Smart must spend at least two days helping the president raise money, make no fewer than 12 annual endorsement appearances for the football program at UGA’s request and that any payments for such “university-related appearances be negotiated and kept by the association.”
In addition, Smart must be available for three personal appearance son behalf of Nike or any future equipment provider and up to three appearances on behalf of IMG or any future rights holder.
Smart agreed to these requirements, but with an added caveat: “The Association and University acknowledge and understand that Smart’s primary obligation shall be to the serve as the head coach of the University’s football team,” and these university-related appearances “shall be subject to his roles of directing the team, including but not limited to its practice, playing and workout schedules and the recruitment of potential student-athletes.”
Smart also included the word “reasonable” to another about complying with the AD’s requests for appearances, “subject to Smart’s schedule in fulfilling his primary role as head football coach.”
