Pike has a contract. It has been amended six times.
Pike's initial contract includes three ways he can be terminated. The amendments, which typically extend term and boost salary, alter the termination economics.
1) By university for cause. Briefly, serious misbehavior not related to game results. Termination for cause by Rutgers is extremely unlikely. For example, Mike Rice was terminated without cause despite indisputable video evidence he physically abused his own players. Pike would get nothing if Rutgers fires him for cause.
2) By university without cause. Fired due to terrible game results because university bosses and donors agree the outlook is poor and want the coach gone. Pike gets his 100% of his salary paid bi-weekly. That amount, based on the salary table in the sixth amendment to his contract, totals slightly more than $19 million paid to Pike through 2031. Pike loses all benefits, such as his $12,000 car allowance.
3) By Pike. He resigns to take another job or to retire. This is sometimes called a buyout. According to the sixth amendment of Pike's contract, Pike would owe Rutgers $13 million. This amount ratchets down by $2 million after each season. Some have posted this amount is reduced by 50% if Pat Hobbs is not the athletic director. Pike's initial contract said this 50% reduction ended on May 31, 2024. That means the 50% reduction no longer applies, unless one of the first five amendments to Pike's contract pushed out this date.
My view - Pike gets two or three more seasons of poor results before he is terminated. Hopefully, the debate goes away because the results get better. If Pike does leave, the contract terms will likely be revised to be mutually agreeable to Pike and Rutgers.
1) Being fired for cause at Rutgers would require an act of moral turpitude the seriousness of which would be completely out of character for Pike. Close to zero chance - but few saw the Hobbs "resignation" that was effectively a termination for cause coming.
2) Unlikely after this or next season. Would be expensive for Rutgers to justify the 8-figure termination payments, and Pike has built up enough political capital to spend two or three more seasons attempting to improve results.
3) Unlikely after this or next season. Pike isn't ready to retire, especially when then would he would forfeit millions in future guaranteed earnings and at the same time owe Rutgers a buyout. At the same time, I do not see another school paying the buyout to bring in Pike, especially in light of recent results.
Odd tidbit that I can't explain: Pike's initial contract is effective March 21, 2016 but wasn't signed by Pike and Hobbs until January 8, 2018. Why was Pike on the jobs for 20 months before a contract could be agreed?
Pike's initial contract includes three ways he can be terminated. The amendments, which typically extend term and boost salary, alter the termination economics.
1) By university for cause. Briefly, serious misbehavior not related to game results. Termination for cause by Rutgers is extremely unlikely. For example, Mike Rice was terminated without cause despite indisputable video evidence he physically abused his own players. Pike would get nothing if Rutgers fires him for cause.
2) By university without cause. Fired due to terrible game results because university bosses and donors agree the outlook is poor and want the coach gone. Pike gets his 100% of his salary paid bi-weekly. That amount, based on the salary table in the sixth amendment to his contract, totals slightly more than $19 million paid to Pike through 2031. Pike loses all benefits, such as his $12,000 car allowance.
3) By Pike. He resigns to take another job or to retire. This is sometimes called a buyout. According to the sixth amendment of Pike's contract, Pike would owe Rutgers $13 million. This amount ratchets down by $2 million after each season. Some have posted this amount is reduced by 50% if Pat Hobbs is not the athletic director. Pike's initial contract said this 50% reduction ended on May 31, 2024. That means the 50% reduction no longer applies, unless one of the first five amendments to Pike's contract pushed out this date.
My view - Pike gets two or three more seasons of poor results before he is terminated. Hopefully, the debate goes away because the results get better. If Pike does leave, the contract terms will likely be revised to be mutually agreeable to Pike and Rutgers.
1) Being fired for cause at Rutgers would require an act of moral turpitude the seriousness of which would be completely out of character for Pike. Close to zero chance - but few saw the Hobbs "resignation" that was effectively a termination for cause coming.
2) Unlikely after this or next season. Would be expensive for Rutgers to justify the 8-figure termination payments, and Pike has built up enough political capital to spend two or three more seasons attempting to improve results.
3) Unlikely after this or next season. Pike isn't ready to retire, especially when then would he would forfeit millions in future guaranteed earnings and at the same time owe Rutgers a buyout. At the same time, I do not see another school paying the buyout to bring in Pike, especially in light of recent results.
Odd tidbit that I can't explain: Pike's initial contract is effective March 21, 2016 but wasn't signed by Pike and Hobbs until January 8, 2018. Why was Pike on the jobs for 20 months before a contract could be agreed?
