Coach Deion Sanders and his Colorado football team are tied for last place in the Big 12 with a 1-5 league record.
Sanders is the highest paid coach in the league at more than $10 million annually, according to “Sanders’ contract obtained by USA TODAY Sports”.
If he is fired after the season for losing too many games, Sanders would be owed about $26 million.
The payout is “payable in equal monthly installments through Dec. 31, 2029”, according to the sources.
Colorado’s athletic department projected a $27 million deficit in fiscal 2026, as reported by “Colorado’s athletic department projected a $27 million deficit”.
That marked the first full year the university was paying Sanders at his new rate of $10 million per year.
The department also began paying players for the first time with more than $20 million in revenue-sharing.
Colorado’s athletic department already receives significant support from the university to make ends meet, according to “Colorado’s financial report”.
The department projected needing an additional $11.9 million in institutional support revenue and $2.2 million in student fees.
A new $26 million contract buyout cost does not seem affordable under these challenging financial circumstances.
However, the university did itself a favor by only guaranteeing Sanders 75% of his remaining contract.
Other schools have historically faced massive costs when fully guaranteeing 100% of a coach’s contract.
Former Texas A&M coach Jimbo Fisher was owed a record $77 million on his fully guaranteed deal when he was fired in 2023, per “USA Today Sports”.
Colorado previously owed its former coach, Karl Dorrell, about $8.7 million on his five-year contract when he was fired in October 2022, according to “reports on Dorrell’s termination”.
By only paying Sanders 75% of his contract through 2029, Colorado saves money that could fund a replacement.
If Sanders retires and does not coach again, neither party would owe each other anything.
If he retires and coaches again at the college or pro level, Sanders would owe the university at least $3 million.