Deion Sanders contract buyout: Colorado HC's contract and salary structure explored

It was another weekend to forget for Deion Sanders and the Colorado Buffaloes, as they were handed their fourth loss in a row. Colorado's run of poor results has left a huge question mark on Sanders' job security as the football program's head coach. Sanders signed the contract that bound him to Colorado less than a year ago, and terminating it this early will trigger a buyout clause.

Sanders' contract guarantees that Colorado will buy him out with 75% of his remaining salary if he's fired before the end of his contract. On the other hand, if he decides to leave Colorado to accept an offer elsewhere, he will be required to pay liquidated damages to the school.

The damages are set at $15 million if Sanders leaves after the 2023 season. If he leaves after the second season, it will reduce to $10 million, and it will continue to reduce in that manner until his five-year contract runs out.

Deion Sanders' contract and salary explored

Deion Sanders was named the head coach of the Colorado Buffaloes football program on Dec. 3, 2022. He agreed to a five-year contract worth $29.5 million. Aside from the $29.5 million in wages, the contract contains various bonuses as well as performance-based incentives. A stipulation in the contract states that the salary, benefits, and so on will be renegotiated after the third year.

Sanders' first-year salary is around $5.5 million, according to his contract. The starting salary for a Pro Football Hall of Famer is $500,000. The balance of his revenues, however, is connected to media requirements, commercial duties, and student-athlete development. His contract's value grows by $200,000 for each year he works on the job. If the contract is upheld, his annual earnings will rise to $6.3 million by 2027.

There is an array of incentives for milestones included in Deion Sanders' contract in Colorado. If the team gets an invite to a New Year Six Bowl, the head coach will get a bonus of $450,000. There's another $750,000 bonus payable if Sanders leads the Buffaloes to a national championship title. Other incentives include $150,000 if the team wins six games in a season and attains bowl eligibility.

In addition, Deion Sanders gets $100,000 for each victory the team clinches after the first six. Furthermore, if Sanders manages to lead Colorado to a Pac-12 championship game, he gets $75,000 and an additional $150,000 if he wins the championship. On a personal level, if he's named national coach of the year, Sanders gets $150,000 and $75,000 if he's named Pac-12 coach of the year.