Planning an institution’s athletic budget can vary depending upon the program’s size, number of sports and the resources available. However, this does not stop institutions from trying to gain an advantage when it comes to obtaining and retaining top coaching talent. Contractual bonus insurance, as a part of a coaches’ contract, is a great tool to help motivate and maximize a team’s performance on the field of play.
Coaches’ bonuses are normally a part of the expense side of the ledger. The implementation of a contractual bonus insurance program allows an institution to free up dollars to use in other areas. These types of programs, not only allow colleges and universities to pay for performance on the court or field but, also provide opportunities to incentivize coaches on the success of student athletes in the classroom. What needs to be considered when looking into this type of arrangement? Below, you will see areas of consideration when planning to roll out a program of this scope.
Performance Standards:
Criteria for a successful season in intercollegiate sports can vary. The competitive landscape can dictate what an institution is willing to contribute to the overall compensation package for a coaching staff. These standards need to be taken into account before obtaining a quote to cover the potential payouts. As an example, the following is a breakdown of the potential payout for a Division I men’s basketball coach in the event they achieve certain metrics set forth in their contract.