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NABC Programs
Legal Issues for Assistant Basketball Coaches' Employment Arrangements
1. Guaranteed Pool of Money - Have the head coach seek a guarantee pool of money for a specified number of assistant coaches. Ideally, annual increases in the assistants' compensation would be built in or tied to annual increases in the consumer price index. 2. Written Employment Agreement - Request a written employment agreement between the university and each assistant coach with a term that is as long as the head coach's employment agreement with the university. Model the termination provision and any guarantee of compensation following termination in the assistant coaches' contracts after the termination provision and guarantee of compensation in the head coach's contract. It is advisable to have an attorney review any employment agreement before you sign it to ensure that your rights are fully protected. 3. Head Coach's Discretion regarding Assistant Coaches - Have the head coach's contract specify that the head coach (not the athletic director or some other university administrator) has the discretion to appoint and remove assistant coaches. Clarify that the assistant coaches report to the head coach, rather than to the athletic director or other university administrator. Also seek a clause stating that an assistant coach cannot be reassigned to another position within the university without the assistant coach's consent, which consent may be withheld in the assistant coach's sole discretion. 4. Benefits - Seek the full package of university benefits for all assistant coaches. Assistant coaches should receive the same benefits package that full-time university employees receive, including medical, dental, retirement plan (e.g., TIAA/CREF) and any matching retirement contributions from the university, vacation and sick leave, tuition remission for family members, and possibly family coverage for medical and dental. 5. Basketball Camps - Request that the university guarantee an annual minimum amount of revenue from summer basketball camps since this is becoming an increasingly important component of compensation for both head coaches and assistant coaches. If the university is unwilling to guarantee a minimum amount of camp revenue, seek a minimum revenue guarantee from the university in the event that the university is unable to make the facilities available for the agreed-upon number of weeks each summer. 6. Company Car - Request a company car for at least the top two assistants. For any assistants who do not receive a company car, seek a stipend for gas or a written policy to reimburse travel expenses, including mileage at the IRS-approved rate (currently $.345 per mile). 7. Relocation Expenses - Seek relocation expenses for assistant coaches. 8. Shoes/Apparel - Seek a guaranteed amount of product for the head coach and each of the assistant coaches from the shoe company or apparel supplier that sponsors the university, if any. 9. Travel for Spouses - Consider requesting for each assistant coach a trip to the Final Four for the coach and his or her spouse at the university's expense. Also consider requesting that the university permit each assistant coach to take his or her spouse on one road trip per season at the university's expense. (Please note that the IRS typically considers university-sponsored travel for a coach's spouse to be a benefit that is taxable to the coach.) 10. Timing of Negotiations - The head coach's contract and the assistant coaches' contracts should all be negotiated at the same time, and ideally prior to the press conference announcing the hiring of the head coach and the assistants. At the very least, it is advisable to have a term sheet in place prior to the press conference that outlines the important terms of the deal for the head coach and the assistants, including the items listed above.
National Association of Basketball Coaches
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