$15 million college football coach sues Big Ten school over buyout dispute

As coaches around college football collect major buyouts in the 2025 cycle, one recently-fired head coach has now filed a lawsuit alleging his buyout payments have been mishandled

Former college football head coach at a Big Ten game | Dylan Widger-Imagn Images

It's a darn tootin' time to be a lawyer in the college sports space, eh? As college footbal programs all around the country change coaches, hand out buyouts and sign ridiculous new contracts, even some former coaches are trying to get what's theirs.

Just this week, as the dust seemed to be settling nation-wide on a chaotic spin of the coaching carousel this fall, we had Sherrone Moore's firing at Michigan and the ugly fallout from that ordeal, plus the somewhat surprising retirement of legendary Utah Utes head coach Kyle Whittingham, setting up a changing of the guard at Utah plus a brand new search in Ann Arbor — which may kickstart a whole other chain of coaching searches.

Amid all this talk of contracts and big buyout money, one former Nebraska coach, Scott Frost, has come out of the woodwork to sue Nebraska, alleging the 'Huskers have shorted him on the agreed-upon buyout payments. Local news outlet WOWT had the news Friday evening:

"Former Nebraska football coach Scott Frost filed a lawsuit Friday, accusing the school of breaching his contract and mishandling millions in buyout payments and taxes," they wrote. "In the complaint filed in Lancaster County District Court, Frost claimed the university wrongly stopped payments he said are owed for 2025 and 2026 under his employment contract. Frost is seeking a court order confirming Nebraska’s right to reduce those payments and seeking at least $5 million in damages.

Scott Frost was fired on the heels of a 10th consecutive loss in a one-possession game, this time to Georgia Southern, 45-42, following a poor start to the team's season in 2022. At the end of that season, Nebraska placed former Baylor and Carolina Panthers coach Matt Rhule at the helm of the program, and he's guided it ever since.

Scott Frost buyout details

Former Nebraska Cornhuskers head coach Scott Frost | Dylan Widger-Imagn Images

When Frost was fired in September of 2022, his buyout came out to roughly $15 million, and that number would have been split in half had the Cornhuskers merely waited a few weeks, until Oct.1, to officially pull the trigger. Now, per Yahoo Sports, the argument centers on some tax mumbo jumbo.

"According to the filing, Nebraska told Frost in December 2022 that it planned to count the projected value of his 2025 and 2026 buyout payments as income on his W-2 for that year," wrote Jim Recalto for Yahoo. "Frost argues that move was improper and left him with a $1.7 million tax liability for money that had not been paid."

Yahoo adds: "Frost says those future payments were guaranteed under his contract and could not be reduced or taken away. However, he also claims the university said in the same email that the payments could later be adjusted, without explaining how or why."

Seek out your local CPA for a better read on this situation, but from the bird's eye view, it appears that Frost had future buyout payments lumped into the same year he was fired, which definitely heavied his tax burden vs. taken the payments over several years. Then, the university tried to adjust or change those payments they had already lumped onto the W-2 which Frost had been taxed for.

Essentially, the man was taxed on money he hadn't yet received, and then when it came to receiving said money, the process for getting it was changed around despite the fact Frost was already liable for the money. At least, that's how Frost's side puts it. Nebraska may have some explaining to do here.