Hewitt's buyout structure...

[BeeRBee]

I kind of hate to give this it's own thread, but while I'm convinced I saw questions about this in some other threads, I can't find them now. Anyway, after scrounging around this afternoon I think I can say this:

• Hewitt was fired in March 2011, before his contract would have rolled over and added a 6th year. At that point he had 5 years remaining.
• The contract did not specify his salary for 2010-2011 (subject to negotiation), but his 2009-2010 salary was $1.375 million per year. I'm assuming he did not get a raise for 2010-2011.
• The buyout of 100% of $1.375 million for 5 years would have been $6.875 million (nominal), and presumably would have consisted of monthly payments of $114,583 ending in March 2016.
• The notes to the GTAA financial report for the year ending June 2011 state that the buyout settlement requires "monthly payments of $75,521 through March 2019", an 8 year period.
• The nominal sum of $75,521 over 96 months is $7.25 million.
• News articles at the time of the firing describe the buyout as being $7.2 million.
• The difference in $6.875 million over 5 years and $7.25 million over 8 years presumably represents the negotiated interest for the agreement to spread out the payments, which works out to be an annual rate of about 3.7%. (If his salary actually increased in 2010-2011 this would be lower.)
• Coincidentally, as of March 2015 GT is exactly halfway through paying off Hewitt's buyout. They have made 48 payments totaling $3.625 million, and have 48 payments to go.

Given the description of the buyout in news articles as $7.2 million, I'm convinced that part of Radakovich's "spreadsheet" work to find the money to fire Hewitt consisted of negotiating the longer payout period. So, this probably wasn't a restructuring that occurred after the firing, but a negotiated settlement resulting in the firing.

More information that anyone needs, but for some reason I really wanted to figure this out.

 

[eetech]

I believe the discrepancy you are seeing was because the way the buyout was structured, in that the amount being paid was increased automatically every year.

People are confusing the Hewitt buyout way too much, because it was nothing like any other buyout we've probably encountered. The best way to probably look at it was that after the end of the teem in which Hewitt git fired, he would be paid 7.2 mm spread out unevenly over 5 years. There was literally no way Tech could reduce the amount, which is what made the contract ridiculous.

 

[eetech]

My bad. It was a 6 year contract with the amount decreasing.

http://espn.go.com/blog/collegebask.../25806/jackets-finally-swallow-hewitts-buyout

 

[CrackerJacket]

Regardless of the exact details, it's plain Hewitt's contract has put our men's hoops program into the dumpster for close to a decade. I see no evidence CBG is capable of turning the thing around, so the journey back to respectability can't begin until next year at the earliest. I would not want the job of trying to market this program to a ticket-buying public, and I'm sad for our players.

 

[Peacone36]

I like our guys. Id like to see them all transfer to Ga. St and get Ron Hunter back to the tourney for the next 3 years. He is a likable guy.