Inside Brian Kelly’s $54M LSU Buyout…and the Hidden Clause Behind It
Brian Kelly just made $54 million by getting fired!
Yes, you read that right — LSU will pay its now-former head coach nearly $800,000 a month for more than six years after parting ways less than four seasons into his 10-year, $95 million contract.
It’s a staggering sum that exposes the financial arms race powering college football — and how universities are quietly building safety nets for multimillion-dollar mistakes.
The $95 Million Gamble That Backfired
When LSU lured Brian Kelly from Notre Dame in 2021, the move was meant to reestablish the Tigers as perennial national contenders. The contract was worth $95 million over 10 years, fully guaranteed.
Kelly delivered moments of promise — including an SEC West title in 2022 — but never reached the College Football Playoff. After a 49-25 loss to Texas A&M and growing internal pressure, LSU decided to move on in October 2025.
The buyout: a jaw-dropping $54 million, the second-largest in college football history, behind only Texas A&M’s $77 million payout to Jimbo Fisher.
How LSU Is Paying $54 Million — Without Taxpayer Money
LSU’s Board of Supervisors quickly clarified one thing: no public education funds are being used.
Instead, the money will come from:
- Private booster donations (one major donor is reportedly covering “the lion’s share”)
- Athletics department revenue — ticket sales, sponsorships, and TV deals
- Deferred payments over several years
This model mirrors how most Power Five programs handle buyouts. These athletic departments generate hundreds of millions annually — and wealthy boosters see keeping a competitive coach as an “investment,” not an expense.
The Contract Clause That Could Save LSU Millions
Kelly’s contract includes a “Duty to Mitigate” clause — one of the few escape hatches LSU has.
This clause requires Kelly to “exercise due diligence and good faith in seeking qualifying employment” while buyout payments continue. In plain English: if Kelly gets another job, LSU can subtract that salary from what it owes him.
For example:
If he signs a 5-year, $25 million deal elsewhere, LSU’s $54 million obligation drops to $29 million.
But there’s a catch. Kelly can claim that no other job is “comparable” to his LSU role — especially since few schools can pay near that amount. That means he could technically take a light media job or even sit out entirely, while still collecting full payments.
The “Time Value of Money” Debate
LSU’s other play is to negotiate a lump-sum payout — a smaller total paid upfront rather than monthly over six years.
The argument: money now is worth more than money later.
But the math doesn’t help LSU much.
Even using a 5% annual discount rate, the present value of Kelly’s buyout is about $46.7 million. Drop that to 3%, and it’s $49.6 million — saving LSU maybe $4–7 million.
That’s why experts believe LSU will still end up paying $40–50 million, depending on negotiations and Kelly’s future employment.
Why Buyouts Keep Getting Bigger
Kelly’s buyout is just the latest symptom of a runaway coaching market.
Agents like Jimmy Sexton have leveraged schools’ desperation to win into guaranteed, front-loaded contracts with limited performance clauses.
Every athletic director swears they’ll tighten future deals — shorter terms, stronger offsets, more incentives. But the demand for elite coaches keeps leverage in the hands of the few who can deliver instant results.
It’s simple supply and demand. And right now, demand always wins.
The Bigger Picture: Public Scrutiny vs. Private Money
Whenever massive buyouts make headlines, taxpayers understandably ask: “Why are state schools paying coaches tens of millions to leave?”
The reality is more nuanced. LSU — like many SEC programs — is financially self-sufficient. Its football program generates enough revenue to cover staff salaries, facilities, and buyouts.
As LSU Board Chair Scott Ballard put it, “Not a single dollar of state funds or academic money will go toward Brian Kelly’s buyout.”
Still, the optics matter. At a time when universities face budget pressures and rising student costs, eight-figure payouts to fired coaches are hard to justify.
What Happens Next
LSU now faces the dual challenge of rebuilding its football program and regaining public trust.
Early rumors link Lane Kiffin (Ole Miss), Mike Norvell (Florida State), and Dan Lanning (Oregon) to the Tigers’ vacancy — all expensive options in their own right.
Whoever steps in will inherit not only a roster in transition but also the financial pressure of following one of college football’s costliest departures.
The Bottom Line
Brian Kelly’s $54 million buyout isn’t just a contract story — it’s a snapshot of what college football has become: a billion-dollar industry where loyalty is negotiable and failure is profitable.
For LSU, the message is as bold as it is expensive: Winning is worth any price. Even $54 million. Stay updated on college football’s biggest stories — from our frequently updated sports news U.S.A.!
