Nutt In Or Out?
Last updated Friday, November 16, 2007 11:28 PM CST in Columns
By Harry King
THE MORNING NEWS
LITTLE ROCK -- Houston Nutt is going to SMU, the man said. Ten minutes later, he called back with an update. Make that Baylor, he said.
A half-hour later, Nutt's agent told a reporter that the reports were untrue.
Chancellor John White told a different reporter he had not heard the rumors and he had not talked to Nutt about the possibility of him leaving.
In addition to the talk that Nutt has found another job, there have been rumors that he will be fired. Unless the school agrees to a buyout, he will not resign and I don't blame him.
To do so would mean walking away from more than $4 million, including a bonus of more than $1 million, a deferred compensation package of almost $1.5 million and a guaranteed income of $330,00 annually for five years. If he is fired, he gets every dollar.
If the Mississippi State game today or the LSU game on Friday is Nutt's last, the school could strike a deal, shielding Nutt from the stigma of a firing and still allowing him to cash out all accumulated chips.
It's quite possible that Nutt has tired of the fight -- particularly off the field -- and there's a good chance of more developments next week in the ongoing e-mail saga.
If Nutt leaves, reasons for his departure will be discussed ad nauseum, but his exit would eliminate the cloud of conjecture that has been hanging over the Razorback football program for months. There is a feeling that Nutt is too divisive, that there is a wedge between some fans and the program, and that only his departure will promote solidarity.
The source of the animosity varies. Some cite his handling of Gus Malzahn, Mitch Mustain and others from Springdale; others despise the lack of progress in the passing game; still others are convinced that the Razorbacks should be among the SEC's elite.
If Nutt is gone, the only reason to delay his departure is to work out the details. If that is done to the satisfaction of all, Nutt's exit could be loosely described as an amicable firing.
Expediency is important. It will clear the decks for the hiring of a new coach -- remember that some basketball coaches said they would not talk to the UA about a job until there was a vacancy -- and the quicker that someone is in place, the quicker he can pursue and persuade recruits.
Nutt's base salary is $329,644. If he is fired and finds another job, the Razorback Foundation is obligated to pay the difference between his new salary and his UA salary through 2012. That could be $130,000 per year or so.
Also in play is a bonus of more than $1 million -- a reward to Nutt for turning down Nebraska in 2004 -- and some deferred compensation.
If Nutt remained the Arkansas coach through Dec. 31, 2009, he would be eligible to receive the bonus which would be $1.2 million at that time. If he leaves voluntarily, he cannot collect. But, if he is fired, the money belongs to him.
The Razorback Foundation set up a deferred compensation plan in June 1999 "as an inducement to Nutt to continue employment ..."
The plan calls for $150,000 to be deposited each July 1, beginning in 1999. At this point, that would be a total of $1,350,000, plus interest. If Nutt stayed until July 1, 2009, the guarantee was $2 million.
If he is fired, he would be entitled to what is in the account. If he resigns, then the money deposited would be returned to the Razorback Foundation and he would be entitled only to the interest earned.
To make up for that lost revenue of $2.5 million or more, there could be a lump-sum payment to Nutt.
Another deferred compensation plan was put in place in May 2002 with $100,000 to be deposited each Jan. 1, beginning in 2002 and continuing through 2011. At this point, the deposits would total $600,000. Nutt is 100 percent vested in the first $300,000 and 80 percent vested in the next $300,000. Benefits were to be paid beginning with $50,000 on July 1, 2006, and $100,000 on July 1, 2007. The second agreement says only that if Nutt leaves as head coach prior to the payout, he would receive "all remaining sums" on the following Jan. 2.
The Foundation is also responsible for guaranteeing the contracts of Nutt's assistant coaches and many of them received extensions early this year.
Harry King is sports columnist for Stephens Media's Arkansas News Bureau. His e-mail address is hking@arkansasnews.com.
About this columnist
The dean of Arkansas sports writers, Harry King updates his column five days per week with the latest on the Razorbacks. A 35-year veteran of The Associated Press, King joined the Arkansas News Bureau in May of 2002. He's covered the Razorbacks since the Arkansas-Texas game dubbed the Big Shootout in 1969.
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wizardofhogz wrote on Nov 19, 2007 10:51 PM:
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