Arkansas Business

This story is from the archives of ArkansasSports360.com.

Head football coach Gus Malzahn’s letter of agreement with Arkansas State University calls for a five-year contract paying a base salary of $156,000 authorized by the state, plus bonus incentives and all profits from television and radio shows, football camps and clinics.

However, according to the letter provided by ASU through a Freedom of Information Act request, if Malzahn were to be terminated in the first year of the contract, the university would pay $2.45 million in "liquidated damages," and then about $490,000 less annually each year of the contract.

ASU did not provide an estimate or guarantee on the value of the media shows, camps or clinics, so the total value of the contract couldn’t be determined from the letter of agreement.

In addition, the university will also provide housing and a variety of performance bonuses. He would receive $50,000 for a conference championship and participation in a bowl game.

If Malzahn were to leave after one year, he would pay “liquidated damages” of $700,000. That amount drops to $350,000 after two years and $200,000 after three years.

(More: Click to download a PDF of the basic terms of the contracts.)

More details from the agreement include:

• If ASU decided to terminate Malzahn's contract "without cause" in the first year, it would pay Malzahn $2.45 million "as liquidated damages." If ASU terminated it in the second year, it would pay Malzahn $1.96 million; the third year, $1.47 million.
• Malzahn would receive a one-year contract extension if the team wins seven games in a season, provided that six are against NCAA Division 1A opponents.
• Malzahn would receive a bonus of $25,000 for participating in a NCAA bowl game absent a conference win.
• Malzahn would receive a bonus of $75,000 for participating in a BCS bowl game.
• Malzahn would receive a bonus of $100,000 for participating in a BCS championship game -- and $125,000 for winning it.
• Malzahn would receive a bonus of $10,000 for being named conference coach of the year and $25,000 for being named national coach of the year.

ASU hired Malzahn as head football coach on Tuesday after its previous coach, Hugh Freeze, accepted the head coaching position at Ole Miss.

Only a year ago, Malzahn was the toast of the college football world, reportedly turning down opportunities to coach at Maryland and Vanderbilt, where his offer was in the $3 million range. Instead he agreed to remain at Auburn for $1.3 million, which made him the highest paid offensive coordinator in college football.

ArkansasSports360.com will update this story.

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