Barnhart Offer of Employment

Big Blue Nation would like to welcome the Wildcat's new athletic director, Mitch Barnhart. Check out his offer from the University of Kentucky which includes salary, incentives, and tenure of employment agreements.

July 14, 2002


Mr. Mitch Barnhart

1959 NW Woodland Drive

Corvallis, Oregon 97330


RE: Offer of Employment


Dear Mitch:


I am extremely pleased to offer you the position of Athletics Director at the University of Kentucky. This letter will set out the essential financial terms of the offer and will serve as the basis of our further negotiations regarding the final written contract, which we will proceed in good faith to finalize. I hope this drafting can be completed within a very short time period. The completed contract will, of course, also contain specific job responsibilities, further details about the compensation package and employee benefits, a limitation on outside activities, fair and clearly written provisions regarding early termination of the contract by either party, with and without cause, and other items contained in contracts with athletics directors of NCAA Division I schools.


1. The initial term of the Contract shall be for a period of 7 years. After three years of successful performance, we will negotiate a term that would "roll" forward so that the contract would have a constant term of 5 years, unless notice is given that the contract would no longer thereafter "roll."


2. The annual base salary will be $275,000.00 per contract year. In addition, for the employee's participation in UK sports radio and television programs and other athletic endorsement programs, the employee will receive $100,000 annually. Standard benefits provided to all employees will be provided: participation in the University's retirement plan, including a 10% contribution by the University, tax sheltered to the maximum allowed by law; participation in the University's health care plans on the terms available to all other employees; participation in the University's long term disability program with any waiting periods being waived; two appropriate late model automobiles for your personal and business use, but you will supply insurance and gas for personal use; moving expenses to Lexington; term life insurance in the amount of $1,000,000.00; and round-trip travel for two trips for your spouse to Lexington to facilitate the relocation process; and a membership in a golf club appropriate for the Athletics Director.


3. Your annual salary will be increased in each fiscal year with the following additional performance-based incentives, not to exceed $150,000.00 in any fiscal year:


• If the men's football team plays in a post-season Bowl Championship Series bowl game sanctioned by the NCAA, the employee will receive a payment of $100,000.00 or if the men's football team plays in a post-season bowl game sanctioned by the NCAA other than a Bowl Championship Series bowl game, the employee will receive a payment of $30,000.00.


• If either the women's basketball team plays in the post-season NCAA Women's Basketball National Championship Tournament or the men's basketball team plays in the post-season NCAA Men's Basketball National Championship Tournament, the employee will receive a payment of $25,000.00. If either the women's or men's basketball team plays in the NCAA Final Four tournament, the employee will receive an additional payment of $25,000.00.


• If any other sport appears in the NCAA Championship tournament or equivalent competition for that sport, the employee will receive a payment of $5,000.00 and an additional $5,000.00 for each national championship obtained.


• Other incentives relating to precisely defined goals established through your and the President's mutual agreement each year for the following year, related to strategic objectives to be obtained in that year, which can amount up to $50,000.00 of this total incentive package.


Incentives will not be paid under certain conditions, including in any given year where significant NCAA violations have occurred in that particular sport or if the University is on probation for violations occurring during your tenure.


4. The University will provide a "longevity incentive" that will be set aside in the amount of $30,000.00 annually. The contract will specify the timing of withdrawal opportunities, which would not begin before June 30, 2006.


5. The contract will provide that premature termination of the contract by either party without cause will result in a payment to the non-terminating party in the amount equal to base salary plus the amount stated in the contract for compensation for participation in UK sports radio and television programs and other athletic endorsement programs the remaining term of the contract.


6. In consideration that you are required to pay the amount of $100,000.00 to your current employer, the University or its Athletics Association will, subject to IRS requirements, make available that sum to you as a loan, and will forgive one fifth of the loan in each of the next five years, provided that you remain employed as Athletics Director.


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