Arkansas Business

This story is from the archives of ArkansasSports360.com.

Dr. Chuck Welch understands why outsiders are skeptical.

Welch, the Arkansas State System President, recognizes the financial commitment made to football Coach Gus Malzahn is substantially more than what the school has paid in the past. He knows the vision for the program with Malzahn at the helm is beyond anything ASU has outlined before.

Details of how ASU will supplement the coach’s estimated $850,000 beyond the state-paid maximum of $156,000 are hard to come by. Attorneys are still working through the official contract and specifics on compensation, but Welch told ArkansasSports360.com on Thursday there “are no concerns whatsoever on our part to meet our obligations” to Malzahn.

“Do we understand why people are scratching their heads? Do we understand why people are questioning if we can do that? Certainly we do,” Welch said. “But I will just say this: there were also a number of people, that when it first got out as a possibility [of hiring Malzahn], who were saying there was no way ASU could pull this off, there’s no way this can happen.

“And we did.”

Malzahn was hired away from Auburn to replace Hugh Freeze in December after Freeze left for Ole Miss. Malzahn was making $1.3 million annually with the Tigers as their offensive coordinator. His deal with the Red Wolves isn’t that lucrative — and doesn’t top $1 million as suggested in a recent report by the Arkansas Democrat-Gazette — but it does include the use of vehicles and a home on the exclusive Ridge Pointe Country Club in Jonesboro.

Money for Malzahn’s salary beyond the line-item maximum is expected to come from a variety of sources. Football camp, clinic and radio/television show revenues will help supplement Malzahn’s salary and a review of ticket prices and donation levels is ongoing at Arkansas State. Malzahn is entitled to all revenue from camps, clinics and coach’s shows.

Welch said the university is confident enough in securing money for Malzahn and his staff that fundraising attention has now turned to facilities projects. ASU is investigating a number of projects, including a press box expansion to accommodate more club and premium seating. An indoor practice facility is also part of discussions as the athletic department puts together its vision for a facilities master plan.

Asked if he was comfortable with the school’s financial commitment to him and the football program, Malzahn didn’t want to get into specific details on the contract. He did say he had “no doubt” the school's commitment to him and the program was the same as when he accepted the position.

“We’re going full-speed ahead,” Malzahn told ArkansasSports360.com “We’re very committed to making this the type of program that we talked about from day one when I was hired.”

Though he was hired in December, Malzahn finished out his season with Auburn before beginning work for Arkansas State. His deal with the Red Wolves began Jan. 1 and will expire Jan. 31, 2017.

Malzahn has yet to sign his formal contract with the school, but is operating under a letter of agreement. A coach working for a period without his official contract is not unusual as lawyers work their way through specific language.