UA invests in creative incentive program to retain coaches, AD

The future of college sports revealed itself in an Arizona Board of Regents document last week, driving commentary that ranged from "brilliant" to "risky."

I call it a necessity.

The regents on Friday will vote on contract extensions for University of Arizona football coach Rich Rodriguez, basketball coach Sean Miller and Athletic Director Greg Byrne as well as a proposal by a "major university benefactor" that will give the three stakes in an oil and gas company.

Longevity would be rewarded, as azcentral sports' Doug Haller first reported last week. If a coach stays for eight years, he would receive 175,000 units of a master limited partnership in the still unnamed company. He could keep the units or cash in, which at the recent value of $35.36 per unit is worth nearly $6.2 million. This figure would be in addition to the annual salary from the university. Byrne would receive 100,000 units.

In many ways the concept is groundbreaking. It provides incentive for accomplished coaches and administrators to stay in their jobs during an era in which impatience rules. And it softens the blow if they leave. Under this contract, if a coach leaves or is terminated with cause before the eight years, the units instead would go to the athletic director to use at his or her discretion in consultation with the donor.

It also raises interesting questions. What if the booster is unhappy with the coach's performance after several years but the university is not? Would it jeopardize future relationships because the booster doesn't want to be stuck delivering the full amount of units after eight years? (Under the UA agreement, if Miller or Rodriguez is terminated without cause before the end of the eight-year period, the coach would receive a share of the units value through the first four years.)

In the long run, however, this kind of deal makes sense, longtime agent Leigh Steinberg said Wednesday.

"It's another clever method to stay competitive with coaching salaries," he said, "and a way of sidestepping controversy. The money they make from universities is heavily scrutinized, especially because of how disproportionate it is to what professors make."

And although this story received national attention because the information was made available in public documents, it surely isn't unique.

"I can't tell you 100 percent that it's been done," Steinberg said. "But it's been done."

Steinberg is right. Private universities don't have to release details of contracts. Stock options, a stake in a company or similar enticement certainly would make sense in that environment.

Contractual perks come in a variety of shapes and sizes. Most college coaches at major universities have cars — and often one for their spouse — and country-club memberships written in their contracts. One I know had a handshake deal that provided a driver any time he went out on a social engagement … because he was known to indulge a bit too much.

Perks, including units of a master limited partnership, are just another way to stay competitive in the market.

Arizona State will help its financial situation soon by selling naming rights for Sun Devil Stadium. Vice President for Athletics Ray Anderson said recently it was a given, prompting some surprising negative reaction on social media. It shouldn't.

Little is sacred in the world of college sports anymore.

That move could generate significant revenue for ASU. The stadium belongs to a school in a major conference, and it sits along a populated freeway.

Ching-ching.

In most cases, though, the public seems to get it.

The recent announcement by ASU that students will be tagged with a $75-per-semester athletic fee hardly caused a stir, even though it wasn't voted on by the student body. Maybe it's because students will get free access to sporting events, as long as seats are available. More likely it's because they understand the changing face of college athletics, that nice stadiums and well-paid coaches often are the best recipe for success.

Steinberg, who has negotiated numerous player and coach contracts, is happy to see Rodriguez and his peers rewarded.

"No coach has a more profound effect on his sport than a college football coach," he said.

It's not only the recruiting responsibilities, Steinberg said, but the project of overseeing players' maturity for four years.

"Some are 17 when they come," he said. "They're not adults, and he has to take those 100-plus, create a system and deal with pressures from the alumni, the university.

"They're worth their weight in gold. They have the ability to build stadiums, drive ticket prices. They can make a huge difference."

So give a nod to Arizona for thinking outside the box.

It's the only way to stay competitive these days.

Reach Boivin at paola.boivin @arizonarepublic.com and follow her on Twitter at Twitter.com/Paola Boivin. Listen to her streaming live on "The Brad Cesmat Show" on sports360az.com Mondays at 10:30 a.m.