An NCAA men’s basketball tournament champion won’t be decided for three more weeks, but among coaches and their various performance-incentive provisions, there is already a major winner:
North Carolina State’s Kevin Keatts, who stands to gain more than $5.5 million from his 10th-seeded team’s stunning five-wins-in-five-days run to the Atlantic Coast Conference tournament title that culminated in an 84-76 victory over top-seeded and No. 4-ranked North Carolina on Saturday night in Washington, D.C.
According to Keatts’ contract with N.C. State, winning the ACC tournament results in:
-An automatic two-year contract extension. This means the contract is now scheduled to run for six more years, through April 15, 2030.
-An automatic $400,000 pay increase that begins next season and stays in place for the remainder of the contract.
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-A $100,000 lump-sum bonus for the ACC tournament championship and an additional lump-sum of at least $10,000 for the team’s automatic bid to the NCAA Tournament. (It’s $10,000 if the Wolfpack begin in the First Four or $25,000 if they win a First Four game or begin play in the round of 64. The payment will increase with each subsequent win in the event.)
The contract extension is where the math gets a little more complicated — and a lot more lucrative.
At present, Keatts’ total basic annual compensation is divided into two components: base salary and “supplemental compensation” that he receives as consideration for fundraising work and other personal appearances such as those on local TV and radio shows; his participation in the school’s shoe-and-apparel contract; and allowing the school to use his name, image and likeness for various purposes.
If Keatts were to be fired without cause — that is, for not winning enough — he would receive, as a buyout, an amount equal to the base salary remaining on the contract; he would receive none of the remaining supplemental compensation.
His base salary for this season is just under $1.5 million, and in recent years it has increased annually by a relatively modest amount. (It went up by a little more than $57,000 for this season, or 4%. Any annual increases are determined by the university’s athletics director and chancellor, subject to approval by its governing board).
His supplemental compensation for this season is $1.45 million, and it can increase annually based on team performance, such as an ACC regular season or tournament title and/or an appearance and advancement in the NCAA tournament.
So, assuming another 4% increase in base salary for next season, the two additional contract years that Saturday night’s win will give to Keatts are guaranteed to add at least $3 million to value of the agreement if he is fired without cause.
But if Keatts were to complete the full term of the deal, his pay would be $400,000 greater than it is this season – for each of the remaining six years, or $2.4 million more.