Monday, May 29, 2023
Home » News » Penn State Basketball » A Big Buyout, Postseason Incentives: Check Out New Penn State Men’s Basketball Coach Mike Rhoades’ Contract

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

no description

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.

Season 12023-2024$500,000
Season 22024-2025$500,000
Season 32025-2026$500,000
Season 42026-2027$500,000
Season 52027-2028$500,000
Season 62028-2029$500,000
Season 72029-2030$500,000
Season 12023-2024$2,900,000
Season 22024-2025$3,000,000
Season 32025-2026$3,100,000
Season 42026-2027$3,200,000
Season 52027-2028$3,300,000
Season 62028-2029$3,400,000
Season 72029-2030$3,500,000
Season 12023-2024$3,400,000
Season 22024-2025$3,500,000
Season 32025-2026$3,600,000
Season 42026-2027$3,700,000
Season 52027-2028$3,800,000
Season 62028-2029$3,900,000
Season 72029-2030$4,000,000

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.

Season 12023-2024$15,000,000
Season 22024-2025$12,000,000
Season 32025-2026$9,000,000
Season 42026-2027$6,000,000
Season 52027-2028$3,000,000
Season 62028-2029$1,500,000
Season 72029-2030$0
Up to $1,075,000
B1G Coach of the Year (solo or shared)$50,000
National Coach of the Year (solo or shared)$100,000
B1G Regular Season Championship (solo or shared)$150,000
Top 5 B1G Finish (including ties)$50,000
10 or more B1G regular season wins$25,000
B1G Tournament Championship$50,000
Win 20 or more games in a season$25,000
Postseason NIT Appearance$15,000
Each Postseason NIT Win$10,000
NCAA Tournament Appearance$100,000
Each NCAA Tournament Win$75,000


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