Structuring College Coaches' Employment Agreements: Important Clauses And Issues In Agreements - (Part One)
An institution's athletics program should be aware of some important
clauses, provisions and issues that are normally found in a coaching employment
agreement.
Duties and Responsibilities of the Coach
An employment agreement should include a general duties and responsibilities
provision. The employment agreement also must include a provision mandating that
the coach abide by and comply with NCAA legislation, interpretations of NCAA
legislation, intercollegiate athletics conference rules and institutional
regulations relating to the conduct and administration of the athletics program.
Beyond the general responsibilities and best efforts clause, the employment
agreement should list specific responsibilities.
The institution will want, in addition to a list of specific duties, a clause
indicating that the coach will perform other duties incident to and consistent
with the position of coach as determined by mutual agreement between the
institution and the coach. From the institution's perspective, listing
specific duties is advantageous, especially in attempting to enforce the
termination provisions for just cause (i.e., failure to perform the duties and
responsibilities specifically assigned).
Automatic Renewal or Rollover Provisions
Rollover provisions extend the term of an employment agreement for an
additional year if the university is satisfied with the coach's performance
after the completion of each season. Thus, a rollover provision extends an
agreement so that the remaining term of the agreement at the commencement of
each succeeding season is the same as the original term of the agreement.
Rollover provisions have at least four drawbacks to an institution. First, an
institution's notice of a decision not to extend the agreement for the extra
year could be considered by courts to be a current breach of the agreement,
which immediately entitles the coach to severance pay or some other remedy. To
avoid this presumption, the agreement must expressly state the parties' mutual
intention to end the employment relationship at the close of the employment
term. Second, rollover provisions are typically poorly drafted. Third, rollover
provisions require the institution to give years of notice of its intention to
let the agreement expire. Finally, rollover provisions are typically one-sided.
While rollover provisions prevent the institution from removing the coach
without paying for the balance of the term, agreements containing such
provisions tend not to guarantee the institution that the coach will not
terminate the agreement and coach at another institution.
Some state-supported institutions are prohibited from entering into
agreements and contracts that bind the institution for more than a period of one
year. An institution should consult with legal counsel about the existence and
applicability of any such law in the institution's state.
Reassignment Clause
A reassignment clause allows the institution to remove an individual as coach
without terminating the employment agreement by assigning the coach to a new
title and different duties. Often, such a clause will contain a statement that
the coach is not to be assigned to any job that is not consistent with the
individual's education and experience.
If the coach refuses to accept such reassignment, the institution may attempt
to terminate the agreement pursuant to the termination provisions. In these
situations, the institution must avoid an accusation by the coach that he was
constructively discharged by such reassignment. The institution should shift the
burden of refusing...
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