• Performance-based bonuses have become a common element of compensation packages for college athletic coaches.
Typical performance milestones include national championships, conference championships, and games-won thresholds.
• As adoption of performance bonuses has increased, the size of contingent payouts has also grown significantly
The total sum of potential performance bonus payouts across multiple sports programs can account for a meaningful portion of athletic department budgets and cash reserves.
• Many college athletic departments are now faced with large potential cash outlays, creating financial risk and uncertainty.
This can be especially onerous at a time when university budgets are strained and athletic programs are viewed with heightened scrutiny.
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