Billy Gillispie’s seven-year deal to coach Kentucky’s basketball team could potentially pay him in excess of $20 million. That UK considers a two-page preliminary memo a sufficient contract flusters Gillispie’s attorney.
“I’m at a loss, to be honest,” Gillispie’s Tulsa-based attorney, Stuart Campbell, said yesterday. “I’ve never experienced this before. That a coach goes into a seven-year deal with a two-page document signed in the middle of the night. And I didn’t see it for a month.”
UK and Gillispie agreed to basic terms during his first night in Lexington. The school introduced him as the new basketball coach the next day.
Those terms were outlined in an April 6 document on UK Athletics letterhead and titled “Memorandum of Understanding Offer.” The memo specifies length of employment and compensation. A one-page attachment details financial incentives for athletic and academic achievement.
In the opening paragraph, UK Athletics Director Mitch Barnhart noted that the memo will be “expanded and incorporated into an employment contract … at the earliest possible date.” He later expressed his wish to formalize the deal within 60 days.
Campbell, 47, identified the terms allowing UK to fire Gillispie without having to pay him compensation as a “major” roadblock. The Memorandum of Understanding Offer requires UK to pay Gillispie $1.5 million per year for each year remaining on the deal (up to four years) if he is fired without cause.
But a firing for justifiable reasons, or “for cause,” would free UK of any financial obligation. The two sides could not agree on how to define “for cause.” This led Kentucky to decide to let the Memorandum of Understanding Offer serve as the contract.
“When Kentucky told us they were not willing to continue to keep trying to nail down a contract and they were considering the memo of understanding as the contract between parties,” Campbell said. “That’s pretty much when we said, OK.”
The memo vaguely defines the terms for termination for cause as “mutually agreed upon by the parties.”
Once Campbell got the memo in mid-May, negotiations began in the form of e-mail exchanges and telephone conversations with UK attorney Barbara Jones.
UK wanted reasons that could be open to interpretation to constitute “for cause,” Campbell said. Gillispie’s attorney said he wanted objective standards like major violation of rules or conviction on felony charges.
“They were giving a lot of specific instances and some of the problems I have is I don’t think it rises to the level of just cause,” Campbell said. “And other things they want are simply so subjective to allow them to define the terms at a later date.”
Campbell declined to reveal either side’s specific proposals.
“We offered some type of mediation,” he said. “We believe our position is reasonable and fair. And they said, ‘No, we’re going with the Memorandum of Understanding.’ ”
UK spokesman Scott Stricklin deferred questions to Jones. The UK attorney could not be reached.
“It’s not that we think this president (Lee Todd) or this A.D. (Barnhart) would be unreasonable,” Campbell said. “No. But who’s to say they’re going to be there two years from now. It’s a long-term contract and I have to look at it as such.”
Gillispie’s immediate predecessor, Tubby Smith, was hired by a different A.D. and school president. When he left for Minnesota, he spoke of being “wanted” by the Golden Gophers.
“I don’t know the particulars of Tubby, but maybe I’m just trying to avoid that same scenario,” Campbell said.
Campbell noted that the Memorandum of Understanding Offer specifies how much Gillispie should compensate UK should the coach leave for another school. “What’s good for the goose is good for the gander,” the attorney said.
When asked how Gillispie was reacting to the impasse, Campbell said, “It’s unfortunate we are where we are. But Billy’s going to coach basketball and win games, hopefully.”
Jerry Tipton of the Lexington Herald- Leader has covered Kentucky basketball since the 1981-82 season. That time includes five coaches, five Final Fours, four athletic directors, two interim athletic directors and many memories. Before coming to Lexington, Tipton worked eight years for the Huntington (W.Va.) Herald-Dispatch. He covered Marshall’s basketball team for two seasons before coming to the Herald-Leader.
if he loses another game to another gardner-webb, i expect we will find out what his contract really says-like “bye”
The way I see it, is this: Billy Gillispie doesn’t want UK to fire him as they (UK) sees fit to, (Just Cause) w/o paying him some kind of monetary compensation, (Buy-out). UK figures that if they have just cause, it must be pretty darn serious enough to get rid of the Coach w/o saying here’s a few million dollars, now quietly go away. Both BCG and UK have their valid points and thus the non-agreement to agree to a memo of understanding. But, BCG is still working for UK w/o a valid contract. Who’s to say, that if BCG grows tired of the pressure here after 1 year and leaves UK. There is not any binding contract that he is breaking. He can just leave UK w/o penalty. Which maybe is his trump card in all of this…Texas Hold ‘em game we have here. After all, the man is from Texas!