Michigan State releases contract terms for head football coach Jonathan Smith

Michigan State gives new head coach Jonathan Smith a big raise to lure him away from his alma mater, Oregon State...

Author:
Matthew Lounsberry
Publish date:
Nov 28, 2023 10:05 PM EST

In this story:

Once Michigan State athletic director Alan Haller identified Oregon State's Jonathan Smith as the guy he wanted to bring in to turn around the Spartans' program, he and the university were willing to give Smith a big pay raise to lure him away from his alma mater.

Michigan State has signed Smith to a 7-year, $52.85 million contract that will run through 2031. The head coach's wages include a base pay of $6 million per year, as well as an additional, supplement pay which begins at $1,250,000 and increases by $100,000 each year until topping out at $1,850,000.

Smith's agreement also includes annual performance bonus including winning six games and earning a bowl big ($75,000), winning seven games and playing in a bowl ($100,000), playing for and/or winning a Big Ten championship ($250,000), playing for the national championship ($350,000) and winning a national championship ($400,000), among other annual incentive bonuses.

Prior to leaving Oregon State, Smith had six years left on his contract, which ran through 2029 and was worth $31.2 million ($5.2 million per season). Michigan State paid Oregon State $3 million to buyout Smith's contract.

Should Smith choose to leave Michigan State prior to the conclusion of his contract, he'll be required to pay a buyout to the university. His buyout begins at $7 million if he leaves prior to Dec. 1, 2024 and decreased by $1 million per year and ending at $1 million he leaves between Dec. 2, 2028 and Dec. 1, 2029. There is no buyout if he leaves after Dec. 2, 2029.

Michigan State has also provided Smith a massive, $10.75 million per year salary pool to fill out his assistant coaching staff. This is a step up from the football program's already impressive budget of $7.5 million for assistant coached under former head coach Mel Tucker.

If at any point Michigan State elects to fire Smith, the university is required to pay Smith 85% of his remaining annual salary at the time of his termination, unless he is fired for cause, as was the case with Tucker. If Smith were to accept another head coaching position, the pay from that job would offset what MSU owes him.

Prior to firing Tucker, Michigan State had signed him to a 10-year, $95 million contract extention that was set to run through 2032. Because Tucker was fired for cause amidst sexual harassment allegations, the former head coach is set to lose the nearly $80 million which remained on his contract. Tucker is expected to eventually sue Michigan State in an attempt to win back some of his remaining contract.

For comparison's sake, Tucker's contract was set to pay him a base of $5.9 million per year, with supplemental pay of $3.2 million per year from TV and radio appearances, the university's apparel contract and other appearances. Tucker's contract called for him to receive bonuses if the team won the national championship ($500,000) or played in a college football playoff game ($275,000), among others.

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