University of Hawaii and Former Football Coach June Jones Haggle Over Buyout Clause

In early January, college football coach June Jones breached his five-year contract with the University of Hawaii in order to accept the head coaching position at Southern Methodist University that will pay him $2 million per year. Jones’ contract with Hawaii was set to expire on June 30, 2008.

The problem with Jones’ early termination of his contract with Hawaii is that there are two clauses in the employment agreement that were invoked by the breach: Section 10.4 and Section 10.2. Section 10.4 of the agreement provides, ‘If Coach terminates this Agreement prior to June 30, 2008 … Coach shall pay to the University as liquidated damages the sum of $400,008.’” In addition, Section 10.2 states that, “Coach therefore agrees, and specifically promises, not to accept employment, under any circumstances, as a men's football coach at any institution of higher education which is a member of the NCAA ... requiring performance of duties prior to the expiration date of the term of this Agreement …”

Hawaii is now seeking $400,008.00 in damages as a result of Jones’ early termination of the contract. Jones, however, has denied that any payment is due to the University. Jones’ agent, Leigh Steinberg, claims that Hawaii's former athletic director, Herman Frazier (who was fired as a result of Jones' departure), and Jones made a special agreement: “After three years, there was to be no penalty if coach Jones were to leave the university. If that were not the case, coach Jones would always honor a contractual obligation," Steinberg said. However, Steinberg’s assertion seems to contradict the language of the contract to which the University and Jones originally agreed.

In the contract, Jones acknowledged the irreparable harm he would cause to the school if he terminated his contract early. One section of the contract states:

“Coach represents to have special, exceptional and unique knowledge, skill and ability as a men's football coach, which, in addition to the future development of coaching experience at University, as well as University's special need for continuity in its men's football program, will render Coach's services unique. Coach recognizes that the loss of Coach's services to University, without University approval and release, prior to the expiration of the term of this Agreement or any renewal thereof, would cause an inherent loss to University which cannot be estimated with certainty, or fairly or adequately.”

The matter will be heard by a mutually agreed upon arbitrator, who will have the final and binding authority regarding Section 10.3 of the contract.

- submitted by Shaquana Cooper, student, West Virginia University College of Law

(Photograph by John Schreiber)