Indiana will pay $650,000 for Crean buyout

According to the terms set out in a memorandum of understanding between Rick Greenspan and Tom Crean, the university has agreed to pay $650,000 toward buying Crean out of his contract at Marquette.

The document actually states that Indiana will pay no more than $525,000 toward the buyout, but a hand-written note in the margin shows the higher amount and is initialed by both Crean and Greenspan.

The buyout payment is in addition to Crean’s regular compensation, which will amount to $18.24 million over eight years.

Crean will receive a salary of $600,000 per year. The balance of his pay — his annual salary averages about $2.3 million — will be paid for “outside, marketing and promotional” duties. He’ll be paid $1.4 million for those responsibilities the first year, with increases each year. In the eighth and final year, he will receive $1.96 million.

Also as part of the memorandum — which states that Crean and the university hope to finalize a contract on or before May 15 — Crean has agreed to a $3 million buy out of his Indiana contract for the first three years of employment. In years four and five, the buy out drops to $2 million; it drops to $1 million for the remainder of the eight-year contract.

Read a copy of the Memorandum of Understanding here.

33 comments

  1. Breathtaking. Thanks for keeping our eyes open about all of this mess. I feel both ashamed and awakened.

  2. Guess all of us IU alumni should be expecting a fundraising call from the IU Varsity Club this spring/summer!

  3. IU never seems to run out of money to fund these adventures. Pay pay pay pay pay pay … but I guess the same alumni who coughed up 500k to buy out Sampson would also cough up $500k to buy the next coach in. What a SHAM … shame on IU! Give scholarships not COACHES.

  4. Wow, I guess as employess of the university we might as well say goodbye to our raises for the next eight years.

  5. Grandpa Swampley always said, “Ya gotta spend money to make money, you little creep.”
    Of course, that never made much sense given his fondness for prostitutes.

  6. “The document actually states that Indiana will pay no more than $525,000 toward the buyout, but a hand-written note in the margin shows the higher amount and is initialed by both Crean and Greenspan.”

    Well doggies! That Greenspan is some kind of “horse trader” ain’t he? But no biggie. It’s only another $125,000. Right?

    Why the man still has a job is beyond me.

  7. I guess you people are blind to how much money basketball makes for I.U. Sold out games every year,not to mention students that come here to be apart of the sporting events. No shame in that game.

  8. “Why the man still has a job is beyond me.”

    I’m guessing it has something to do with
    -wisely firing Gerry DiNardo
    -hiring Terry Hoeppner
    -having the guts and good sense to keep Bill Lynch
    -handling the Mike Davis situation with class, something almost no one else did
    -falling on his sword for the Sampson situation by never once trying to cover his own rear end publically
    -nabbing Tom Crean after we had just been shot down by Tony Bennett, who I believe is in his late teens.

    This has been a tumultuous time in IU athletics, but not because of Rick Greenspan. I think the whole mess could have been even worse if we’d had a less experienced guy in there. I hope none of you “fire first, deal with the lawsuits later” people don’t own businesses. If you did, they wouldn’t last very long.

  9. Yes … sold out to the drunks and vulgar speaking students who embarassed B’town and the university on national TV. NOT sold out when they were trying to run Mike Davis out of town. Not sold out when Dakich lost 5 in a row … whatever they make gets poured down the toilet paying coaches who no longer coach for the university. BUY-in’s and BUY-out’s are going to be the demise of the university sports slush fund.

  10. calling out the students for supporting their team is ridiculous….yes, they may be drunk, but they are the reason assembly hall gets so rocking in the first place…its embarrassing that the majority of “fans” at the game are sitting except when something really good happens or at the 8 minute time out…on a positive note, the Crean hiring is a great thing for this program and university…sure it might take a little while to get things sorted out but i look forward to a return to the glory days for IU! Go Hoosiers!

  11. I love the stupid tenured faculty complaining about this salary. Tom Crean is worth more than you because he works more hours and does something very few people can do.

  12. “I love the stupid tenured faculty complaining about this salary. Tom Crean is worth more than you because he works more hours and does something very few people can do.”

    Sounds like someone who didn’t get tenure.

  13. I have never posted a comment on any forum or blog. Ever. But then again, I’ve never seen a comment as knuckle-dragging stupid as HighBar’s. Coaches of high profile sports teams get paid huge amounts of money because they, in-turn, create even greater profits for the university. The ad revenue, sponsorships, ticket sales, and alum donations skyrocket when the men’s basketball team succeeds. HighBar, I don’t think you’re “awakened” quite yet.

  14. Wow, that Ann seems a little upset. Take it easy. Ohh by the way, those students that are “drunk” and loud is what makes Assembly such a tough place to play. Not you old Alumni who sit on your hands and complain because the students are standing and cheering for you team. Hopefully when we finally build a new arena, they will put you where you belong, up in some luxury suite where you can it and chat with your friends. And the real fans will be down with the good seats.

    And for the love of God how can you defend Mike Davis and Dan Dakich. Davis, albeit a very nice guy was not a the right guy for the job. He did not deliver the results that were expected, and please don’t even get me started on Dakich. My parents are BG alums, and I heard all the great stories about him and how the program was a steady decline the last 5 years he was there. I think he kicked off and had more players transfer the last 3 years then they had wins.

    So by all means keep posting your ridiculous comments. It at least provides some entertainments value.

    EDITOR’S NOTE JUST FOR CLARITY: THIS IS NOT FROM DOUG WILSON. IT’S A DIFFERENT DOUG.

  15. I agree that Greenspan should not still have a job after the whole Sampson ordeal. He seems like he is fighting against IU instead of for IU. I think that Crean is giong to be a great asset to the university but at the expense of everyone invovled especially the students. I see another raise in tution for next semester. I think that we should focus on the students that go to IU that don’t play a sport, they are just as important.

  16. I realize that the athletics budget and the university budget are separate….but that still doesn’t keep me from wanting to vomit when I see them throwing millions of good money after bad in the althletic departments, when IU “can’t afford” to pay its staff a decent living wage and most of us are living at — or on the brink of — the poverty level.

  17. I said this once before: athletics don’t “make money for the university.” That right-wing “trickle-down” theory does not apply to universities (nor to real economies). Too bad this fiction continues about the “boon” of high priced sports.

    If you want to put aside IU for a moment, look at public universities with very successful sports programs, basketball and beyond: Wisconsin, Michigan, UNC, to name three. Do you think those universities are rolling in cash as a result? Do you think they are rich in undergrad and grad fellowships, competitive faculty salaries, good wages for clericals and staff? If so, you’re in la-la land.

    A blogger added some data yesterday:

    Sources:
    http://www.bloomington.in.us/~sperber/ (Beer and Circus)

    Challenging the Myth: A Review of the Links Among College Athletic Success,
    Student Quality, and Donations (Prepared for the Knight Foundation Commission on Intercollegiate Athletics May, 2004)
    by Robert H. Frank
    Henrietta Johnson Louis Professor of Management and Professor of Economics
    Johnson Graduate School of Management
    Cornell University
    Ithaca, NY 14853

    http://www.amazon.com/Game-Life-College-Sports-Educational/dp/0691096198

    http://mtprof.msun.edu/Fall2001/CurtArt.html

    http://www.cfo.com/article.cfm/7239613/c_9746131

  18. Tom Crean’s Big East and C-USA record…
    2007-08 11-7
    2006-07 10-6
    2005-06 10-6
    2004-05 7-9
    2003-04 8-8
    2002-03 14-2
    2001-02 13-3
    2000-01 9-7
    1999-00 8-8

    Not really impressive, especially looking at his C-USA record. Also, he has never been known as a coach who assembled a tough non-conference schedule. This is the guy that’s going to return IU to the glory days? So, I guess, congrats?

  19. I wish IU could give the same amount of money to a doctor or team of doctors/researchers to find a cure for cancer.

  20. I am sure that Coach Crean will adopt some cause on campus and help generate funds for it that otherwise could not have been obtained. Much in the same way Coach Knight always did for the library.

    Yes, they get paid way more than most of the rest of the faculty and staff at a university, but they are also a much more public face for the university and as such are similar to actors. Do coaches truly deserve $2.3 million per year ($600,000 base), I do not know much as I do not know if a baseball player deserves $20 million a year (I really think No on that one). However, that is how our society ranks them while saying the academics and those searching for cures for disease often get paid less than coaches, ball players, and CEOs who have golden parachutes.

    The fact is we just have to get over the dollar amount and eventually look at the books and see if the benefits are outweighing the costs. What is the return on investment? If it is positive, then it is a good thing. [at the same time I think professors who bring large grants into the university should also get a monetary bonus/reward for their added funding since most universities keep 25% off the top]

  21. What IU is paying Coach Crean is the going rate. They had a choice: hire and PAY a qualified coach or don’t pay up and hire a nobody.
    It is a shame that doctors/researchers trying to cure cancer aren’t paid as much as coaches. But, my fellow hypocrites, we aren’t watching and cheering them on in stadiums and on TV. IU paid what they had to pay.

    I, for one, am very pleased about the hire. As a wise old man from Ossian told me: “The bandwagon will be very crowded in a few years!”

  22. Lots of new opinions on this one. Interesting. I too, question the big bucks however the one that blows me away is our federal government (dare I say the Bush admin.)

    Our government spent 42 million dollars to send a letter to each household to inform us that we are going to recieve the tax stimulus rebate.

    Ladies and Gentlemen………42 million dollars.

    I can read a newspaper. I also own a TV that announced this fact. Why do I need a letter? that amount of money could save thousands of lives.

    That makes the Crean buyout a tinkle in the ocean. Is the Crean salary and buyout right? Naw……I don’t think so, but I am a regular Joe, just keeping my family fed and the utilities paid. Everything exists in it’s own perspective. i.e. Coach Crean borrowing a Cavalier to go shop for his wife. A real life, nice young man and $20 got the job done. So tell me why any coach needs 2 plus million a year to do what he does? Free market? I guess. ?????????????

  23. Ok really no team in the Big East has that hard of a non conference schedule. They have one of, if no tthe, toughest conference. Look at U of L’s Non-conference schedule. He dead great for the school he was at and the conference he was in. The money that the University is paying Crean, isn’t University money, It’s the Athletics Department’s. It’s from what they generate. If they got rid of thee sports department that money would not be there. If they paid it all to the Dean’s, admin, prof’s, their would be no money to give out because the athletics’s dept wouldn’t be selling out anything or selling much merchandise because they wouldn’t have the coaches or facilities to attract anyone. There is also the money school’s get from winning awards such as players of the week etc…, where the money goes to the general scholarship fund. Also most school’s only have maybe one or two sports that turn a profit. These one or two sports pay for all the non profit ones so the students have more choices and to attract more students. Some school’s like Ohio St, Florida, U of L put millions back into their general scholarships fund and sometimes also help pay for other campus renovations. There is also the money that is brought into the community from people coming to see the games, staying at hotels, going to restaurants, shops etc. So if you spent all the money or half the money IU makes from sports everyone would be making the same as they are now because there would be no money to give out. Most of you smaller sports would be gone. Hotels wouldn’t be there and alot of mom and pop places would be gone. Also sorry if you don;t like people cheering being loud and sometimes a little crazy at the games, but that’s why they have golf and the golf clap. Why do you think most school’s are moving their “silver” section around because it’s a more exciting atmosphere when people stand and cheer and clap.

  24. Thanks for the Murray Sperber citation. Maybe you guys can write Myles Brand about your concern. He also has unrealistic ideas and, clearly, hates sports. And, he just so happens to be in charge of the organization that perpetuates all of this. Maybe we can just go back to intramurals.

  25. go and watch “hoosiers” some more, maybe you and shooter can watch the paint dry down in Indiana. If it is such a great school, then why do you have players get kicked off the team, leave early for the NBA, have coaching turnover, used to have an angry old man throw chairs at officials,etc. WOW! what a great tradition. How is Mike Davis doing? How about Coach Sampson? In 3 years, you will be begging to get rid of Crean. Will we have some NCAA sanctions coming your way? What year did you last win it all? I am actually from Illinois, not Marquette. I cant wait for this season, will you guys have to fill a team? You will probably have to bring in OLLIE to shoot free throws bc your water boy will be your 5th player. INDIANA SPORTS IS A HAS BEEN, THAT IS WHY THEY MAKE SPORTS MOVIES ABOUT INDIANA SPORTS.
    But keep believing, and maybe on Sat mornings you all can get a free haircut.

  26. joe hoss……..come over to Nicks some night and give the customers some more of that rhetoric. I bet patrons would offer you a free ride home. No…better yet…….just stay in Illinois and eat your sour grapes. Eric is leaving us so, get over it.

  27. I can see why I wont ever Send my children to IU. What has happened to all the scholorships? OH Wait its in the Athletic department…. Now That makes sense dont it? I thought IU was a College for learning not athletics only. I guess I was wrong.. Greenspan should be without his job as well as Sampson!!!

  28. M.A.R, By the looks of it, you wouldn’t have to worry about your children getting scholarships.

  29. Another point is why to the athletics get “A” handicap stickers to park close to classes. I think if they ar handicapped in any way, maybe they should not be playing sports. Parking is already a major problem on campus. I have a handicap sticker and it burns me to watch five players get out of their vehicle and walk to class. This has went on for three years now.

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