Former LSU coach Brian Kelly received a letter from LSU on Wednesday confirming that he was fired without cause and is owed “liquidated damages as required” under his contract of about $54 million.
The letter, obtained by The Associated Press, clears the way for Kelly to withdraw a Nov. 10 lawsuit against the university. Kelly said in the suit that LSU officials had suggested he could be fired for cause, which could have substantially reduced his buyout.
LSU spells out in Wednesday’s letter that Kelly has a legal obligation to make “good-faith, reasonable and sustained efforts” to get another job in football while he is still being paid by LSU.
Under Kelly’s contract, salary from a new football-related job would offset what he is owed by LSU. The 10-year contract, worth close to $100 million, runs through 2031, unless the two sides agree to a settlement severing their legal relationship before then.
Kelly’s lawsuit, filed in civil district court in Baton Rouge, alleged that LSU representatives had told Kelly’s attorneys that the coach was never “formally terminated” the day after LSU’s 49-25 loss to No. 3 Texas A&M on Oct. 25.
Additionally, Kelly’s lawsuit said that 15 days after he’d packed up his office and left his job, LSU representatives told the coach’s lawyers for the first time that the university intended to fire him for cause.
However, Kelly’s attorneys made a Nov. 19 offer to withdraw the lawsuit if the university provided written confirmation that the coach was fired without cause and still owed the full buyout. The offer came in a letter, also obtained by the AP, that was sent to LSU Athletic Director Verge Ausberry and LSU Board of Supervisors Athletics Committee chairman John Carmouche.
Wednesday’s response from LSU was signed by newly appointed university President Wade Rousse.
The 64-year-old Kelly went 34-14 with LSU, including three bowl victories. But the Tigers did not reach the College Football Playoff — which last year expanded to a 12-team format — during Kelly’s tenure.
Four days after Kelly had packed up his office at LSU’s football operations building and had been replaced by interim coach Frank Wilson, LSU athletic director Scott Woodard resigned under pressure from Gov. Jeff Landry and his appointees on LSU’s Board of Supervisors.
The day before Woodward resigned, Landry publicly slammed the then-athletic director, saying he would not be permitted to hire LSU’s next football coach. Landry also blamed Woodward for signing Kelly to a contract that became financially burdensome when the coach did not meet expectations.
According to Kelly’s contract with LSU, the school could have fired him for cause if it had cited “serious misconduct,” including NCAA violations, crimes or immoral behavior.
“Coach Kelly never engaged in any such conduct, and LSU never relied on any incident of cause” before firing Kelly, the coach’s Nov. 10 lawsuit stated.
Kelly has informed LSU that he was open to a settlement, but that it had to “make sense financially.” It is common for people owed money through a certain future date to settle for a “present value” derived from a number of variables, including recent and projected rates of inflation.
LSU initially offered to settle with a lump-sum payment of $25 million, which was raised to $30 million after Kelly rejected the initial offer, according to documents filed in Kelly’s case.
Kelly has rejected LSU’s settlement offers so far, “but stated he remained open to any additional offers that LSU would like to make.”
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