A Big Buyout, Postseason Incentives: Check Out New Penn State Men’s Basketball Coach Mike Rhoades’ Contract

Penn State Athletics released the contract terms for new men’s basketball head coach Mike Rhoades on Wednesday afternoon in conjunction with the announcement of his hiring.

Previous men’s basketball head coaching contracts had not been made public in the past. As such, it is difficult to compare incentives and other compensation. While not officially released and only stated here as broad comparative benchmarks, the general understanding is that former head coaches Micah Shrewsberry and Pat Chambers each left Penn State making just north of $2 million and $1 million, respectively.

All of that aside Rhoades will take over as the Nittany Lions’ fourth head coach in five years making $3.4 million in total guaranteed compensation during his first year at Penn State, with that total increasing by $100,000 each year over the seven year contract length. While contracts are almost always renewed prior to their conclusion, as written Rhoades would enter the final year of his current deal making $4 million.

As for his buyout, it would appear that Vice President for Intercollegiate Athletics Pat Kraft is not interested in losing Rhoades to a new program in the immediate future, with buyouts of $15 million, $12 million and $9 million the first three years in State College. The following three years would see Rhoades’ buyout drop to $6 million, $3 million and $1.5 million with no buyout in the final year of his deal.

Penn State did not release the agreement if Rhoades would be fired for cause. Comparatively, Penn State football coach James Franklin would be owed the total compensation remaining on his own contract. It’s unknown — and Penn State would not disclose when asked — if Rhoades’ contract follows a similar buyout structure. Interestingly enough, Rhoades’ buyout will dwarf Franklin’s in each of the next seven years of their respective contracts. Starting in the coaching year 2024, Franklin’s buyout is no higher than $2 million with his current buyout set at $6 million.

As for incentives, Rhoades will be rewarded for postseason appearances more than anything else, earning $100,000 for each NCAA Tournament showing with the potential bonus earnings of no more than $1.07 million. The full list of buyout terms and bonus incentives can be seen below.

OTHER

2 dealer car/vehicle stipend, 25 personal use hours on private aircraft, ticket allowance and relocation allowance