Allen’s contract reworked again, will earn $4.9 million per year

Indiana coach Tom Allen has received yet another raise.

The school announced Monday that Allen’s contract has been restructured to pay him annual compensation of $4.9 million per year through the 2027 season. It’s Allen’s second new contract in 15 months, this time following a historic 2020 season.

In Dec. 2019, Allen signed a new seven-year contract worth $27.3 million. That contract increased his expected annual earnings from $1.8 million, among the lowest pay rates in the Big Ten, to $3.9 million, which was more in line with his conference counterparts. It still ranked 10th among 14 Big Ten coaches in salary, though, according to USA Today’s database of college football coaches.

Allen will now earn another $1 million per year in annual compensation. According to USA Today’s current figures, that has Allen more in line with Iowa’s Kirk Ferentz, who ranked sixth in the conference at $4.9 million of scheduled annual pay. Ferentz was also among the top 20 football coaches nationally.

As the Hoosiers get ready to start spring practice Tuesday, Allen’s new deal sends a message.

“When I talk to recruits and their families about why (facilities) are important, it’s because it shows commitment. It shows investment. It shows the priority for football at IU. And this is an extension of that,” Allen said. “When you talk to recruits and their families, they want to know ‘Are you going to be coaching my son when he’s a sophomore, a junior, a senior?’ Because that’s a big deal.

“Things like this send a strong message in that direction, the commitment of the university, and the commitment of myself and my family to being here. So that means a lot to me, and that obviously puts a lot of power behind your words, that it’s not just something I’m saying.”

IU’s administration has certainly continued to invest in football, which drives the budgets of most athletic departments. They are doing that despite the COVID-19 pandemic, which has constrained revenues over the last year.

Allen’s last contract made him the highest-paid coach on campus, ahead of IU men’s basketball coach Archie Miller and his annual compensation of around $3.4 million. This latest deal again resets the bar for the richest contract IU has ever given a coach.

IU has also doled out richest-ever contracts to key assistants, including a new defensive coordinator, Charlton Warren, who was paid $700,000 in compensation for 2021 to come over from Georgia. Deland McCullough, IU’s running backs coach, was hired away from the Kansas City Chiefs last month and offered a contract worth $515,000 per year.

For comparison, IU’s last running backs coach, Mike Hart, made $375,000 during the 2020 season.

“Tom Allen has proven himself to be not only the right person for our student-athletes and our program, but one of the best football coaches in the country,” IU athletic director Scott Dolson said in a statement. “The enthusiasm and outlook for our program is at an all-time high, and the future of Indiana Football is in great hands. I look forward to Tom leading our program for many years to come.

“I thank President (Michael) McRobbie and the Board of Trustees for their support throughout this process, and I thank Tom for his commitment to building something very special in Bloomington. I could not be more excited about the future of Indiana Football.”

Allen’s contract will continue to have the “evergreen” provision that was built into the last, extending his contract automatically by one year every time the Hoosiers make a bowl game.

In the last deal, Allen’s base salary throughout the lifetime of the deal was $500,000, plus another $500,000 in deferred compensation. That remains the same. But like in the last deal, the biggest pay increases came via outside, marketing, and promotional income.

Before, the first year of outside income was worth $2.25 million. Allen will now receive $3.3 million in outside, marketing, and promotional income in 2021. That number increases by $200,000 each year, up to $4.5 million in the final year.

The new terms are written as an amendment to the previous contract, which should mean the rest of the deal from Dec. 2019 remains intact, including the bonus structure. For instance, Allen earned $100,000 for a bowl appearance in 2020, as well as another $100,000 for winning a national coach of the year award.

While it’s not specified by the amendment, Allen said Monday his pool to hire assistant coaches was again increased as part of this contract negotiation.

“I’m so appreciative and very, very thankful for Scott Dolson. Appreciate his commitment to our football program,” Allen said. “President McRobbie has been huge in all of this, the board of trustees. So just really appreciate all of them, the leadership of Indiana. I’ve said all along, it’s about wanting to be at a place that values our football program, that’s going to invest in our football program, and allow us to be able to have the infrastructure and the support to do great things here.

“That’s what I want to do, and I appreciate their support in that area, and all they’ve chosen to invest in football.”

32 comments

  1. I understand progressiveness wanting to maintain T. A. @ IU long term.
    Response: Rework T. Moren contract for long term. IU Ladies basketball program is one of the best things going on at IU and it’s representation for Indiana University.
    Others may know of other contracts that might fit into this category.
    However, I specifically target T. Moren contract including money available for assistants or others who are in IU Ladies basketball program.

  2. Of course… I think all this money and benefits regarding major college and professional is way out of perspective

  3. This shows Scott Dolson understands IU needs to improve the football program and I hope coach Shelby and Heard get good pay raise as they have shown they are very good based on player performances. Coach Jones and Peoples need to be the next increases after Shelby and Heard in the next year or two. Coach Sheridan, Hiller, and Wright need to show they can improve the team and their players over the next two years then get a raise.

    t, I agree with you about coach Moren , I wonder how good she could make the men’s team and show IU is willing to promote very good women coaches. She may not want to make the move but it would be interesting if she does and Dolson goes with this.

    1. Wait…wait…wait…wait…wait, Mr. Volcano. Are you reading H4H posts on the basketball threads without making replies/comments?

      I mentioned considering Teri Moren for a potential MEN’S basketball program hire a few days ago. Are you hijacking my transformative ideas? Here’s what I said four days ago:

      H4H’s Comments from the Crypt says:
      March 4, 2021 at 3:20 pm

      Sometimes the best candidate for the job is right under your nose…. Why not offer Teri Moren the head coaching job of the men’s program?
      Obviously, a big hit to the women’s program…but Teri Moren could likely work in conjunction with our AD in finding a great candidate to follow in her footsteps.

      Other pluses…besides getting the best candidate who would likely consider the job.
      1. We don’t have to buy out Teri’s remaining contract. Few million in savings there.
      2. We can likely pay the next women’s coach a bit less….Couple million savings there.
      3. Teri is still very near to advise the women’s program. We get someone doing more for less…It’s the corporate way.
      4. She is a Purdue grad. The greatest compliment to your teacher is to beat your teacher. We likely start winning against Boilers again.
      5. We set the new trend as an institution truly striving for equitable treatment in all realms of employment.
      6. There would be no story more “relevant” on the college basketball scene. Indiana led the way with opening the door for African American athletes …in statewide high school tournaments and at Indiana University. Now we lead the way again by naming the first woman to be a head coach at a power 5 men’s basketball program.

      Sometimes the greatest reinventing of yourself…doesn’t require a telescope searching every corner of the universe. Reinvention can be just as near a prejudice and a beer in the fridge.

      1. Good points H4H but I don’t follow the BBall site as I just not into basketball other than wanting to see success for sports at IU. People that are against women coaching men are wrong and need to change as men coach women sports. I don’t like segregation and getting more women with experience and success in coaching into men’s sports would help improve the sports.

  4. This is the right move, for many reasons. It protects IU from having TA poached by wealthier FB schools (i.e., SEC schools). It helps TA and staff recruit because it eliminates those recruiting tactics that try to create doubt about how long TA will be at IU, and it sends a signal to the college FB world that IU is now playing for keeps.

    I join those who believe TM deserves a raise and a contract extension, but let’s remember that Football bays the bills. It’s been well established for many years that IU BB just breaks even, and during down seasons like this one, it probably loses money. All the other sports lose money too. So if we want TM and other good IU coaches to get more, we need to hope that fans will start attending IU Women’s BB games in far greater numbers and we need Tom Allen to continue delivering winning FB teams.

    Don’t be surprised, after the pandemic restrictions are lifted, when IU announces that the price of home FB tickets has been increased. Don’t complain when it happens because IU FB tickets have been the lowest priced tickets in the Big Ten for many years, and even after the prices are increased they will still be a great value. And remember, generating more FB revenue is how IU keeps other great coaches, like TM in Bloomington.

    1. V. Yes that would be interesting but I prefer T. Moren stay with IU Ladies basketball program because she is so valuable in development of young women as players and people. This also includes her coaching staff. T. Moren makes a difference as a leader at IU.

      PO. Quit putting attendance qualifiers on T. Moren…I know what you are saying but it sounds discriminatory.
      Raising ticket prices for football is not a factor because of starvation for a winning football program. Those who are going to games will pay the ticket prices AS LONG AS IU continues to have a competent winning football program. And I would say sustainability is still in the area of a ? An accurate picture will be drawn in future years.

      1. I don’t care how it sounds, this isn’t about political correctness, it’s about economic reality. The best players in the WNBA make a fraction of what the NBA’s best players make. That not “discriminatory,” it’s economic reality.

        1. Wrong. You’re thinking is even more wrong than before because how much money/profits did IU football make last year??? And what were the expenses??? Since you are the one talking about attendance and selling tickets criteria to justify pay raise for T. Moren vs not holding criteria of any attendance and any selling tickets criteria for T. A. Other than you want to make sure T. A. is taken care of and stays at IU as coach. I get it but you’re economic reality is what you want it to be rather than what reality actually is.

          1. You’re right, t. And since March Madness television contracts and economic influx to areas holding tournaments are huge financial revenue sources for the NCAA and their respective conferences (many of the funds filtering into all the lower revenue sports), it doesn’t make much sense to let basketball simply go down the flusher while putting so much, potentially, false hope of ever drawing fans by the masses to Indiana Football.

          2. t, I didn’t understand what you were trying to say in your previous post.

            In college athletics, FB pays the bills for almost all other athletic programs. A few successful BB programs may generate a profit, but according to Fred Glass a few years ago, IU Men’s BB just “breaks even.” A successful FB or BB program not only sell lots of tickets, but increases alumni and booster donations that go into paying for the non-revenue-producing sports programs. A Power-five conference school is lucky if their women’s BB program doesn’t lose money. And there are probably about ten schools where the Women’s BB team generates enough incremental revenue to pay for itself. I assure you that IU is not yet one of those schools. Nothing would please me more if TM’s success allows IU Women’s BB to become so successful that the revenue the program generates exceeds its expenses.

    2. Tom Allen said, “When you talk to recruits and their families, they want to know, are you going to be coaching my son?” Allen said. “If he’s a sophomore or a junior or a senior. That’s a big deal. Things like this send a strong message in that direction. Commitment from the university and commitment of myself and my family to being here. That means a lot to me, and it obviously puts a lot of power behind your words. It’s not just something that I’m saying.”

      1. PO. You insist in putting qualifying criteria of attendance and ticket sales plus making a profit on giving T. Moren a pay raise and better contract.for her, only. You’re thinking is very discriminating. If that’s the way you want to break things down then simply earmark an increase (let’s see) …couple million annually dollars increase (from donors, university fees, ticket sales and other university revenue etc) increase over current existing contracts fund to be appropriated to T. Moren and staff salaries and contracts. Just make it personally for her and staff contracts and salaries. It’s all a question about priorities and distribution of financial resources from university revenues. (Not just attendance and ticket sales). Doesn’t matter if university revenue comes from Alumni lemonade stand sales. And if IU Ladies basketball keeps winning more (important to keep T. Moren)…who’s to say there wouldn’t be a paradigm shift to an untapped market for college/IU Ladies basketball. Yes, PO you’re insistence on qualifiers of ticket sales and attendance, ONLY for IU Ladies basketball is discriminatory thinking as the only criteria of scale you use to qualify T. Moren for a more lucrative contract and contract extension. To single her out in this way shows that IU Ladies basketball is not your priority and in fact very discriminating thinking because it isn’t on YOUR priority list.

        1. This also applies to the positive difference that is being made in the IU Ladies players/Team and everything called families.

          1. Wisconsin Ladies basketball now has coach opening because of a very losing program. No, T. Moren probably wouldn’t go there. HOWEVER, THOUGH NOT NEARLY AS MANY AS ON THE GENTLEMEN SIDE ….THERE WILL BE LADIES COLLEGE BASKETBALL COACHING OPPORTUNITIES IN THE FUTURE THAT WILL PAY MONEY AND RATHER THAN START OVER IT IS IN IU‘s BEST INTEREST NOT TO MISS OPPORTUNITY TO HAVE T. MOREN CONTINUE HER COACHING CAREER AT IU IF SHE CHOOSES.

  5. t, I understand wanting Moren to stay with the women’s bball program I was just making a thought idea of if she replaced Archie and how she could improve the men’s program. There would be too many issues for it to happen but she has the women’s team playing better than the men’s program.

    Dolson has convinced me he cares about the football program and will do what is needed to keep success of the football team to keep continuing. Coach Allen is a great motivator and as success keeps going more quality players will come to the program in future years.

  6. Example of T. Moren on her radio show a young girl (less than 10 years old) called in. It was after Maryland loss in big ten tournament last year 2020. IU Ladies were soundly beaten. From an outsider that was not any kind of surprise.
    Little girl: Coach, do you give up on your team during a game when there is no way you’re going to win and time is running out.
    T. Moren: Thank You for calling and asking this question. I want this to be a lesson to you. I will never give up on my team no matter what the score is or how much time there is to go in game. That’s something I will never do. You must never give up.

  7. You’re comparing apples against oranges, V. The women’s program is doing great, but I think most understand how much more competitive and balanced things are in the men’s Big10 than the women’s game. The women don’t face the brutal competition across the board as the men’s program. Sort of like comparing Big10 East football against Big10 West. Is an upper tier team in the West that much stronger than a mid-tier in the East?

    “Better” is very relative…In football, OSU rules the roost. In 2020-21 basketball, the men’s Big10 has five or six teams who are plenty capable of winning national championships and ruling the roost. There is a much wider bell curve of strong conference talent/teams in men’s basketball than in football or women’s hoops.

  8. Regardless, college women basketball rankings.
    Maryland t w/Louisville 7
    IU ………………………………9
    Michigan……………………13
    Rutgers………………………19
    Ohio State………………….22
    Iowa received votes

  9. Definitions and statistics can say anything. My thinking on economics…there may be a handful but I don’t know of any self supporting profit making sports entities anywhere. This includes Alabama, Ohio State, Indiana Pacers, and Indianapolis Colts as examples. 1. Who builds and pays for football stadiums and basketball arenas????
    2. Who pays volunteers? They don’t get paid. There volunteering.
    3. Who pays all the utility bills???
    4. Who pays for upkeep and maintenance for all facilities???
    5. Who pays for building parking lots and upkeep???
    6. Who pays for all that landscaping???
    7. Who pays for facility expansions and remodels???
    8. Who pays for meals, travel hotels, and training???
    9. Who pays for the land where facilities are located???
    10. Who pays for all the salaries for all involved???
    Who pays for, who pays for, who pays for???? the list goes on and on.
    I know tv revenue, ticket sales and attendance, and donors. My point is from government, entertainment stars including sports entities…I can’t find one that’s purely self supporting and pays all its bills. Revenue from attendance and ticket sales minus expenses (many listed above) = profit. All while there is hardly any perspective on what a man or woman salary is when in that financial eliteness club.
    Less than one year ago coaches etc were giving back 10% income. I guess preacher Joel Olstein, Jimmy Swagert, and others are righteously right. Give money and watch it come back a millions-fold. Anyone want to donate or give me any money? Lol.

    1. I don’t think you understand how the finances in intercollegiate athletics work.

  10. Coach Moren would have to be nuts to take on the men’s job. And I don’t think she is nuts.

  11. Ron, I don’t think she would take the men’s job but it is a good challenge. Someone mentioned the woman coach the Spurs as one to look at since the players love and respect her. Those of us talking about this are just wanting IU to look out of the box and getting someone that will excite people and turn the bball program around. Personally, I would love to see what coach Moren could do for the men’s program but as you pointed out I don’t think she would do that although $$$ could change her mind.

  12. V. It is good that you acknowledge and I acknowledge that you acknowledge the validity of IU Ladies basketball program led by T. Moren and staff.
    T. Moren and her staff are invaluable to that side of the ball. One thing that immediately jumps out for women coaching staff would be recruiting especially at big ten major league level. I do recall a similar conversation surrounded UCONN women basketball coach. Bottom line: if you’re on top or near the top just enjoy job security, the ride and be thankful for it. (Actually, there are a number of coaches on women side that one could have this conversation arguably even with more validity than T. Moren). One example being Maryland women basketball coach.
    T. Moren is on her journey to become distinguished @ IU on the Ladies side of the ball.

  13. And my perspective on college and professional sports and all entertainment position salaries and exec salaries so often pathetically overpaid as well …current T. Moren salary neighborhood example (maybe a little
    bit more but not a lot more) could be used for the more to most successful coaching salaries across board. That not only includes IU coach Tom Allen but Ohio State, Alabama football coaches etc etc etc…professional basketball players, and even government subsidized corporate welfare owners. Then, distribute revenues to lower college costs to attend and basically live across the board.

  14. t the biggest increase in college cost are the regulations by the federal gov’t. Schools like Michigan have over 100 people now in their diversity office tracking who knows what. Add in all the regulations about loan money, scholarships ect and you have the real reason for college cost increasing. The salaries for coaches other than base salaries of several hundred dollars are paid by the money brought in by the athletic departments.

    If your idea is that coaching salaries are the reason for college cost increasing all you have to do is look at the cost of Ivy League schools who don’t pay coaches very much and don’t use public moneys. They have billion dollar endowments and still increase their tuition every year.

    1. V. No that’s not my argument for high cost of college. Rather a small percentage of argument. Back all money including donors out from where it comes from, count it as revenue and redistribute which includes lowering major sports salaries everywhere. There are many reasons why cost of college has increased at accelerated pace. One being govt loans to students. Colleges have no reason to decrease and hold cost in check. Government loans almost backfire from what they are intended to do or the way it is implemented and sold. Yes, I am aware of Daniels and Purdue example. This happened after college costs for students were to far out of line to begin with. However, something is better than nothing.

  15. V. I also agree with you about all the government nonsense creating more (some of these jobs are higher paid) not only at colleges but in high schools, junior highs, middle schools, and elementary. The effort to make things more perfect the more imperfect they become. Norms.

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