According to Rutgers athletics spokesman Jason Baum and Bloomberg News, former Rutgers head coach Greg Schiano (read about his emotional farewell at NFL.com) owes the school about $800,000 in buyout and loan payments for leaving Rutgers. He, of course, is off to the NFL to coach the Tampa Bay Buccaneers.
Just to make sure that everyone got it right, I checked out the coaching contract. And while they are mostly correct, I just want to clarify that the amount currently owed and payable is just $500,000.
The $500,000 Schiano owes is essentially the liquidated damages for breaking the contract and it will be due 30 days from his termination of the agreement.
As for the loan, Rutgers University actually sold Schiano the Logan Lane property (Block 859.2, Lot 8 at Logan Lane in the Township of Piscataway, to be exact) initially and reserved the right to repurchase it from him in the event that his employment with the University were to end. Thanks to his coaching contract, which essentially provided him with $100,000 in equity in the home each year on December 1st through loan forgiveness, Schiano has $500,000 worth of equity in the house that will likely be reverting back to Rutgers. In that case, the $300,00 would be offset by the amount that will be owed by Rutgers to Schiano in the repurchase. However, if for some odd reason it isn’t sold to the University, then Schiano will owe the school the remaining $300,000 for the home within one (1) year or upon the sale of the home, whichever comes first. But, technically, the $300,000 is not currently due.
