The term sheet outlining the contract terms for Pat Kelsey, the newly appointed men’s basketball coach at the University of Louisville, has recently been released. This document sheds light on the compensation package for Kelsey, who previously served as the head coach at Charleston. At 48 years old, Kelsey hails from Cincinnati and was officially announced as the 24th head coach in the history of Louisville basketball on Thursday afternoon.
Among the key details highlighted in Kelsey’s five-year contract with U of L, the term sheet provides insight into his compensation package. Additionally, it presents a comparison between Kelsey’s deal and that of former head coach Kenny Payne. Payne, who held the position for just two seasons, was tasked with overseeing a challenging period marked by disappointing on-court performance. By juxtaposing these contracts, the term sheet offers a comprehensive view of Kelsey’s appointment and the context surrounding his tenure as head coach of the Louisville Cardinals.
🎥: @patkelsey Introductory Press Conference #GoCards https://t.co/4EIJae29qz
— Louisville Athletics (@GoCards) March 28, 2024
Contract Details for Louisville Basketball Coach Pat Kelsey Revealed.
According to the terms outlined in Kelsey’s agreement with Louisville, he is set to receive an annual salary of $2.3 million for each season spanning from 2024-25 to 2028-29. Additionally, the contract includes various one-time bonuses for Kelsey, who previously coached Charleston and Winthrop to multiple NCAA Tournament appearances, despite not securing a win in any of the four tournament games. Notably, his buyout from Charleston was reported to be $1 million.
These one-time bonuses cover different achievements, including being named conference coach of the year, national coach of the year by recognized bodies such as the Associated Press or Naismith, as well as winning the ACC regular-season or tournament championship. Moreover, there are additional one-time bonuses tied to the NCAA Tournament, with varying amounts based on the team’s performance, from reaching the tournament to winning the national championship.
Furthermore, the term sheet stipulates that if the Cardinals make NCAA Tournament appearances in 2025, 2026, or 2027, Kelsey’s contract will automatically extend through the 2029-30 season at the same pay rate. Beyond salary and bonuses, the agreement outlines other benefits for Kelsey, such as up to $50,000 in moving expenses, a family membership at the University of Louisville Golf Club, access to a suite at the KFC Yum Center for men’s basketball games, and eight season tickets to all Louisville men’s and women’s basketball games and football games.
Additionally, the term sheet addresses the potential scenarios regarding Kelsey’s separation from the school. In case Louisville terminates Kelsey’s contract without cause, the university would owe him 95% of the remaining guaranteed compensation, subject to mitigation and offsets, payable over the remainder of the contract term. Conversely, if Kelsey decides to leave Louisville for another position, he would be required to pay 95% of his remaining guaranteed compensation to the university within 90 days.
Analyzing the Contract Discrepancy Between Louisville Basketball Coaches: Pat Kelsey and Kenny Payne.
In comparison to his predecessor at U of L, Kelsey’s contract is notably smaller. Payne, who took over coaching duties in March 2022, signed a six-year deal with an annual salary of $3.35 million. His contract included incentives and provisions, such as receiving $8 million if Louisville terminated his contract without cause in Year 2, which ultimately transpired. Payne’s compensation was also tied to on-court performance, with a payout of approximately $558,333 for each of his 12 wins at Louisville. His contract was set to extend through March 2028, with potential salary increases contingent upon the team’s success in making the NCAA Tournament.
On the other hand, Kelsey’s contract features one-time bonuses linked to achievements in the NCAA Tournament, such as advancing to different rounds of March Madness. Addressing the salary difference, Louisville AD Josh Heird explained that the variance was based on factors like the coaches’ respective circumstances and the transition from mid-major to Power Five conferences. He highlighted that their salary negotiations were informed by data comparing compensation packages of coaches making similar career leaps. Kelsey’s salary was determined to align with industry standards for coaches transitioning to higher-profile programs.
Moreover, it’s noteworthy that when Louisville parted ways with former coach Chris Mack in January 2022, the school agreed to a $4.8 million severance package. This severance agreement is being paid out in monthly installments of $133,333.33, as reported by the Courier Journal.
