Brian Kelly’s recent dismissal from Louisiana State University (LSU) marks the latest episode in a growing trend of costly coaching firings in college football, highlighting the stark contrast between the financial realities of struggling Americans and the lucrative world of collegiate athletics. As many face hardships such as hunger and loss of medical insurance, high-profile football coaches like Kelly continue to secure enormous financial safety nets even after being let go.
On Sunday, LSU announced it had parted ways with Brian Kelly following a disappointing home defeat to Texas A&M that knocked the Tigers out of the Associated Press (AP) Top 25 rankings. This fall from grace was especially notable considering LSU had been ranked as high as third nationally in September and remained a top-10 team for the majority of the season. Kelly, who was serving the fourth year of a ten-year contract reportedly worth about $100 million, now faces an uncertain future—but financially, he is well protected.
Although details surrounding the termination are still being finalized, Kelly’s contract stipulates that LSU owes him 90% of the remaining balance if he is fired for cause, a figure estimated to be around $54 million. The agreement includes a “duty to mitigate” clause, which obligates Kelly to seek other employment so LSU’s financial responsibility could decrease. Yet, finding another institution willing to hire him may prove difficult, given his 31-14 record at LSU, which included only one appearance in the College Football Playoff, a program that had won a national title just six years prior. More realistically, LSU is expected to continue paying Kelly roughly $800,000 per month through 2031, allowing him to comfortably retire at age 64. In today’s economy, such a cushy exit is enviable.
Kelly’s situation is far from unique in college football’s current landscape. Just two weeks before LSU’s decision, Penn State fired James Franklin, a coach who had led the Nittany Lions to the College Football Playoff semifinals the previous year and had played a key role in restoring the program’s reputation after a historic child sex abuse scandal. Penn State is currently paying Franklin $49 million to no longer coach. The following week, the University of Florida parted ways with Billy Napier, the first Gators head coach in 76 years to finish with a losing record (22-23). Florida is obligated to pay Napier $21 million, with half of that sum due by mid-November. Notably, when Florida hires Napier’s replacement, it will be the second time in seven years that the school pays three head coaches simultaneously. LSU finds itself in a similar position, paying Kelly’s severance while also completing a $17 million buyout for Kelly’s predecessor, Ed Orgeron.
This season’s coaching carousel has already seen ten firings, with colleges owing a staggering $169 million in buyouts, including six coaches from the prestigious “Power 4” conferences. These figures don’t account for private institutions like Stanford, where coach Troy Taylor’s buyout terms remain confidential, or for coaches like Wisconsin’s Luke Fickell and Florida State’s Mike Norvell, whose job security remains in jeopardy as the season progresses. Historically, firing a college coach was a difficult decision, marked by public humiliation and a tangible sense of loss. Coaches would often leave town with their families, and school administrators risked their own careers with every hiring decision. The stigma was palpable and long-lasting.
However, the paradigm has shifted dramatically in recent years. College athletics has evolved from an amateur-driven enterprise dominated by a cartel of schools into a more open marketplace that prioritizes star players and high-profile programs. This change has fostered a private equity mindset among the wealthy benefactors who bankroll major athletic departments. Coaches are increasingly treated like corporate executives who generate hundreds of millions of dollars for their institutions. Two years ago, Texas A&M’s decision to pay Jimbo Fisher a record $77 million upon his firing seemed outrageous. Today, Georgia would owe its coach, Kirby Smart, $105 million if they fired him, though the program is unlikely to do so given his status as the highest-paid coach in college football.
While the revenue used to cover these buyouts largely comes from lucrative television contracts and sponsorships, it’s worth considering what else could be funded with these sums. Scholarships for student-athletes, reinstatement of women’s and Olympic sports programs, and other educational priorities could benefit significantly if these buyouts were curtailed. Yet