Board of Regents Meeting - Arizona State University

Board of Regents MeetingDecember 1-2, 2011Item #41EXECUTIVE SUMMARY Page 1 of 4Item Name: Multiple-year Employment Contract for Head Football Coach (UA)Action Item Discussion Item Information ItemIssue:The University of Arizona requests approval of the Multiple-Year EmploymentContract for Richard A. Rodriguez as Head Coach of its Football Team (“Team”).The proposed term of Rodriguez’s Multi-Year Contract would be from December1, 2011, until November 30, 2016.BackgroundThe University of Arizona seeks approval to hire Richard Rodriguez as HeadFootball Coach. The proposed contract term is five years. The proposed initialsalary is $1,450,000, and will be increased as set forth below during eachsubsequent contract year, ending in a salary of $1,800,000 during the final contractyear. Rodriguez’s salary will be allocated between Program and Peripheral (i.e.,promotional) duties.Rodriguez served as head football coach of the University of West VirginiaMountaineers from 2000 to 2007, where he compiled a record of 60-26, whichincluded 6 bowl game appearances. He then coached the University of MichiganWolverines from 2008-2010, including one bowl game appearance. Most recently,Rodriguez was a college football analyst for CBS Sports.Statutory/Policy RequirementsABOR Policies 6-1001 through 6-1003 require approval for multiple-year employmentcontracts.DiscussionThe highlights of Rodriguez’s proposed Multi-Year Contract are as follows:1. Contract Length and Salary The Contract term will be from December 1, 2011, until November 30, 2016.Rodriguez’s combined Salary for Program and Peripheral Duties will be as follows:Contact Information:Greg Byrne, 520-621-4622, Director, Intercollegiate Athletics, gbyrne@arizona.eduB. Glenn George, 520-621-5150, Vice President for Legal Affairs and General Counsel,bggeorge@email.arizona.edu

Board of Regents MeetingDecember 1-2, 2011Item #41EXECUTIVE SUMMARY Page 2 of 4o Year 1 $ 1,450,000o Year 2 $ 1,500,000o Year 3 $ 1,600,000o Year 4 $ 1,700,000o Year 5 $ 1,800,000Rodriguez’s salary will be paid entirely from revenue generated by the AthleticDepartment. His salary will be paid from department generated funds.2. Annual Incentive PaymentsRodriguez may receive additional one-time compensation, on an annual basis, for thefollowing Team Academic and Athletic Achievements:a) Academic Performance Payments(1) APRRodriguez may receive additional compensation for the following AcademicProgress Rate (APR) Team achievements. Payments are for the highest-rankedachievement and are not cumulative to any lower-ranked achievement:$5,000 if the APR meets or exceeds 952*;$7,500 if the APR is 1,000* APR lower tier calculation methodology: Eligibility for the $5,000 payment set forthabove is calculated by adding one to the most recently published multi-year APRachieved by the Team, unless such number is below the average for peer Division Iteams, in which case the Division I average plus one, must be met or exceeded toearn an annual APR bonus.(2) GPARodriguez may receive additional one-time compensation for Team Grade PointAverage (GPA) achievements in a given year. Payments are for the highest-rankedachievement attained and are not cumulative to any lower-ranked achievement:$5,000 if the GPA meets or exceeds 2.6*;$7,500 if the GPA meets or exceeds 3.0.*GPA calculation methodology: Initial Base Team GPA is determined byrounding the highest cumulative Team GPA achieved during the prior coach’s

Board of Regents MeetingDecember 1-2, 2011Item #41EXECUTIVE SUMMARY Page 3 of 4contract term to the nearest tenth. The $5,000 bonus will be paid if thecumulative Team GPA exceeds initial Base Team GPA by one-tenth; the$7,500 bonus will be paid if the cumulative Team GPA exceeds initial BaseTeam GPA by five-tenths. Base Team GPA will be recalculated each yearbased on the cumulative Team GPA from the prior year.b) Athletic Performance Incentive PaymentsRodriguez may receive additional one-time compensation, on an annual basis, forthe athletic achievements in each category set forth below:o Bowl Game Participation:- BCS National Championship Game $150,000- Any Other BCS Bowl Game $100,000- Non-BCS Bowl Game $ 75,000o PAC-12 Achievements:- PAC-12 Conference Champion $ 75,000- PAC-12 Division Champion $ 75,000o Final BCS Team Ranking (non-cumulative):- Ranked Within Top 10 $ 50,000- Ranked Between 11 th and 15 th $ 40,000- Ranked Between 16 th and 25 th $ 30,000o Total Season Tickets Sold (includes UA Students)(non-cumulative):- Exceeds 45,000 $ 80,000- 40,001-45,000 $ 70,000- 35,000-40,000 $ 60,000o Coach of the Year:- National Coach of the Year $ 50,000- PAC 12 Conference Coach of the Year $ 30,000If Rodriguez were to earn the maximum incentive bonuses allowed in each yearduring which the Contract is in effect, he would receive annual payments of$525,000 ($15,000 and $510,000 for academic and athletic achievements,respectively).

Board of Regents MeetingDecember 1-2, 2011Item #41EXECUTIVE SUMMARY Page 4 of 4(3) Miscellaneous ProvisionsRodriguez will receive compensation from private entities that contract with theUniversity to 1) furnish athletic shoes and apparel (NIKE), and 2) broadcast athleticevents (IMG).Rodriguez will receive all employee-related benefits that are normally available toUniversity employees in the professional service. He will receive additional benefits,including tickets to UA sporting events, use of two automobiles or a stipend therefor,guests to post-season football events, the right to use University facilities foroperation of a summer football program, country club membership, and use of anon-commercial jet for recruiting and other football-related activities (up to 45 hours).To the extent required by NCAA and Pacific-12 Conference regulations or Universitypolicy, Rodriguez must disclose all outside income to the Athletics Director, theUniversity President, and the ABOR President annually.The Contract may be terminated by the University President or his designatedrepresentative for cause, in which case the University shall be liable only for salaryand incentive payments earned to the date of termination. Additionally, if Rodriguezviolates NCAA or Pacific-12 Conference regulations, he may be liable to theUniversity for damages up to $100,000.If the University President or his designated representative terminates the Contractwithout cause, the University shall pay Rodriguez liquidated damages for each yearor portion thereof (pro rata) remaining in the Contract, calculated as follows: fiftypercent (50%) of University-funded compensation plus that percentage ofcompensation designated as Employee Related Expenses (as published by theUniversity’s Financial Services Office) as of the date of termination, plus the sum of$12,000 (the agreed annual value of the automobiles provided by the University oran outside entity for Rodriguez’s use during the term of this Contract).In the event Rodriguez terminates the Contract prior to expiration of its term, hemust pay the University liquidated damages equal to one-half of the then remainingvalue of his University-funded compensation.Recommendation to the BoardIt is recommended that the Board authorize the Multiple-Year Employment Contract ofRichard A. Rodriguez, Head Football Coach, according to the terms and conditions setforth in this Executive Summary. Approval is contingent upon review of the finalcontract by ABOR Senior Vice President and General Counsel to ensure that its termsare consistent with this Executive Summary.