Michigan State University’s dismissal of Alan Haller will have a financial fallout beyond his own contract.
It affects football coach Jonathan Smith’s deal as well.
The school’s decision to part ways with its athletic director Thursday triggers a clause in Smith’s seven-year, $52.85 million deal he signed when he was hired 17 months ago that cuts in half how much another school would have to pay to pry him away from the Spartans.Smith’s contract reads: “In the event Alan Haller is no longer serving as the Athletics Director at the time of termination, the Liquidated Buyout shall be reduced by 50%.” That clause was not in the contract of either previous MSU football coach Mark Dantonio or Mel Tucker, nor is it part of Tom Izzo’s ongoing five-year contract that rolls over annually
Smith was hired Nov. 25, 2023. MSU hired its new president, Kevin Guskiewicz, two weeks later on Dec. 8 that year, and he took over the top leadership position at the university on March 4, 2024. A leadership change within a school can have a trickle-down effect, with a new president wanting to hire an athletic director they are familiar with, and then a new athletic director then potentially looking to replace inherited coaches from a previous regime. Similarly, coaches also want to work for leaders they are familiar and/or comfortable with and could seek other opportunities if a relationship with a new athletic director is not established quickly
If another school were to hire Smith away between now and Dec. 1, he would owe MSU $3 million a relatively small buyout for a coach entering his eighth season running a power-conference Football Bowl Subdivision program after leaving Oregon State. MSU paid the same amount to get Smith out of his contract with his alma mater.If Haller remained AD, it would have cost a potential suitor for Smith $6 million this year. The adjusted terms to Smith’s deal with the provision kicking in means should he leave for another job, he would owe MSU $2 million between Dec. 2 and Dec. 1, 2026; it drops to $1.5 million the following year, $1 million in Year 5 and $500,000 in Year 6. Smith would not be required to pay the university if he were to leave after Dec. 2, 2029, without an extension or renegotiated contract with a new
