Arkansas Business

New University of Arkansas football coach Bret Bielema has signed a letter of agreement that will pay him $3.2 million annually for six years.

Outlined in the 14-page document, posted in full at the end of this story, is a buyout for firing Bielema that starts at $12.8 million in the first year and drops to $3.2 million in year six.

Bielema, who will be introduced as coach at 4 p.m. Wednesday news conference at the Broyles Center in Fayetteville, would owe the UA between $3 million and $500,000 if he chooses to leave over the course of his contract.

The deal also includes a no-compete clause probibiting him from leaving for other Southeastern Conference schools.

Buyout totals drop by $500,000 annually.

Athletic and academic achievement incentives built into the contract for Bielema, who was earning $2.6 million annually at Wisconsin, could pay an additional $700,000. Included among the bonus options:

• A $350,000 payout for winning the national championship.
• A $300,000 payout for appearing in the national championship.
• A $200,000 payout for appearing in a semifinal playoff game (beginning in 2014)
• A $150,000 payout for appearing in a non-title BCS game
• A $100,000 payout for appearing in the Capital One or Cotton Bowls
• A $50,000 payout for any bowl game appearance
• A $25,000 payout for winning SEC Coach of the year
• A $25,000 payout for winning national coach of the year
• Up to $200,000 can be earned for academic achievements

Arkansas will also make arrangements to pay Wisconsin the $1 million buyout that Bielema owes for leaving the Badgers.

Bielema's contract will easily make him the top-paid state employee in Arkansas. A fellow UA employee, men's basketball coach Mike Anderson, will likely rank second. Anderson's total compensation for the current fiscal year is more than $1.6 million.

Bielema, who comes to Arkansas after seven seasons with the Badgers, replaces John L. Smith, who was under a 10-month, $850,000 contract with Arkansas. Smith was hired in April to replace Bobby Petrino, who was fired for lying about the details of a motorcyle crash and hiring his mistress to a football staff position.

Petrino earned $3.56 million annually with the Razorbacks. He was fired for cause and owed none of the $18 million buyout in his contract.

Bielema was 68-24 at Wisconsin. His record included winning three consecutive BCS berths, guiding the Badgers to the Rose Bowl.

Bret Bielema Letter of Agreement - Arkansas