Breaking Down Kenny Payne's Contract to Coach Louisville

Payne was announced as the next head coach of the Cardinals on Friday.

LOUISVILLE, Ky. - There's a new man in charge of the Louisville's men's basketball program.

The University of Louisville Athletic Association formally approved Friday a contract for former Cardinal and Kentucky assistant coach Kenny Payne to be the next head coach of the men’s basketball program.

"I want to thank President Gonzalez and for this incredible opportunity to return to a place that means so much to me to lead our storied basketball program," Payne said in a release.

"While there are challenges, I see opportunities, and if we are united and aligned, there is nothing that we cannot accomplish. Our fans and community deserve a championship basketball program fueled by exceptional and high-character student-athletes, and it is my responsibility to deliver on that vision. I cannot wait to get started."

Payne's contract lasts six years, starting on Mar. 21, 2022 and ending on Mar. 31, 2028, with his base salary being $3.35 million. He also has a retention bonus of $300,000 if employed on April 1, 2025, and another for $1 million if employed on April 1, 2028.

There's also NCAA insurance embedded in his contract. Should the NCAA find violations from before his employment that results in a postseason ban, Payne will be extended by one year for each year such of a ban. For example, a two years will be added to his contract should Louisville be slapped with a two-year postseason ban.

As expected, there are plenty of bonuses that involve the NCAA Tournament, particularly for his first and and second appearances in the Big Dance. In those instances, he will receive $100,000 for making the tournament, $150,000 for reaching the Round of 32, $250,000 for making the Sweet Sixteen, $300,000 for cracking the Elite Eight and $400,000 in the Final Four. The increases are non-cumulative and are based on highest threshold met.

NCAA Tournament bonuses after his second appearance revert to a cumulative status. He would make $25,000 for making the tournament and the Round of 32, $50,000 for reaching the Sweet Sixteen, $75,000 for the Elite Eight and $100,000 for the Final Four.

Payne has a one-time bonus of $250,000 should he win the national championship. Other one-time bonuses included $25,000 for being named Conference Coach of the Year, and $50,000 for National Coach of the Year, ACC Regular Season Champion or Co-Champion and ACC Tournament Championship.

Other additional benefits includes: a one-time signing bonus of $100,000, a life insurance policy for $15 million, family membership at the ULGC golf course, a car allowance of $1,000/month, use of a suite at the KFC Yum! Center for all men's basketball games, eight club seats to all men's and women's basketball games and football games, eight seats for all away and post-season men's basketball games, and his wife and immediate family are allowed to travel to away games.

As for his buyout, is it broken into two sections. If Payne is terminated without cause, it starts at $10 million during the first year of his contract, and decreases by $2 million each year, with the exception of year five to year six when it decreased by $1 million.

The buyout is slightly different should he leave for another job, starting at $3 million, and decreases by $500,00 with each year. If the job he leaves for is a head coaching position in the NBA, it also starts at $3 million, but drops to $1.5 million, $1 million, $500,000, $250,000 and $0 with each subsequent year.

(Photo of Kenny Payne: Scott Utterback - Courier Journal / USA TODAY NETWORK)

You can follow Louisville Report for future coverage by liking us on Facebook, Twitter and Instagram:

Facebook - @LouisvilleOnSI
Twitter - @LouisvilleOnSI
Instagram - @louisville_report

You can also follow Deputy Editor Matthew McGavic at @Matt_McGavic on Twitter