New Arkansas basketball coach John Calipari has signed a five-year contract with the Razorbacks that is set to pay him a base salary of $7 million dollars a year.
University of Arkansas board of trustees met Wednesday morning to approve the contract which was of a “salary in excess … of maximum.” When the approval was granted, Arkansas athletic director Hunter Yurachek tweeted an image of red smoke rising out of Bud Walton Arena, signaling the hiring of Calipari, 65.
The deal with Calipari includes a $1 million signing bonus and retention bonuses of $500,000 per year. The pay can increase by as much $1.25 million per year based on various payments, maxing at a one-off bonus of $500,000 for winning a national championship.
Calipari’s contract also includes a non-compete, a clause that stops Calipari from jumping ship and taking another job. But only within the SEC. The contract also includes a buyout clause that provides for the school to pay 75% of Calipari’s reamining salary if he is fired for convenience. Calipari would have to pay $6 million to the school if chose to buy out his contract.
Technically, Calipari is taking a pay cut. He made around $8.5 million per year at Kentucky. The $7 million base now is behind only Kansas’ Bill Self in NCAA Basketball coaches salaries.
Calipari will be formally introduced during a press conference at 6 p.m. at Bud Walton Arena on Wednesday. The presser is open to the public.