Oregon Ducks Coach Dan Lanning's Lofty Contract Incentives In College Football Playoff

Oregon Ducks' football coach Dan Lanning received a contract extension in 2023, making him the second highest paid coach in the Big Ten Conference and No. 15 nationally at that time. While the details of his deal have not changed, other coaches have been paid more based on new hires and extensions for current coaches. As a result, Lanning is now tied fifth in the Big Ten and 18th nationally in terms of annual salary.
Jul 25, 2024; Indianapolis, IN, USA; Oregon Ducks head coach ??Dan Lanning speaks to the media during the Big 10 football media day at Lucas Oil Stadium. Mandatory Credit: Robert Goddin-USA TODAY Sports
Jul 25, 2024; Indianapolis, IN, USA; Oregon Ducks head coach ??Dan Lanning speaks to the media during the Big 10 football media day at Lucas Oil Stadium. Mandatory Credit: Robert Goddin-USA TODAY Sports / Robert Goddin-USA TODAY Sports

Oregon Ducks Football head coach Dan Lanning received a contract extension one year ago that placed him in the upper echelon of the Big Ten Conference coaches in terms of salary. At the time, the new deal that pays Lanning $7 million annually had him ranked No. 2 among Big Ten coaches and No. 15 nationally per USA Today.

Fast forward one year and while Lanning’s contract has not changed, his ranking has slipped as compensation for coaches continues to climb. The latest numbers as reported by Front Office Sports show that Lanning is now tied with Iowa’s Kirk Ferentz as the fifth highest-paid coach in the Big Ten, and behind Wisconsin’s Luke Fickell, Washington’s Jedd Fisch, Ohio State’s Ryan Day, and USC’s Lincoln Riley. Nationally, Lanning comes in as No. 18 among all FBS schools.

The typical ranking for a college football coach is based on the salary alone. However, the contract will contain a wide range of incentives that can significantly increase total compensation. The basic agreement as unanimously approved last year by the Executive and Audit committee of the University of Oregon’s Board of Trustees provides an extension that will run through January 2029.

Lanning’s salary increases from $4.7 million to an annualized $7 million in 2024 with $200,000 increases in each subsequent year and includes $1 million per year in deferred compensation. He can also earn contract extensions for up to three additional years for every season the Ducks win 10 games.

The built-in incentives can take the total compensation to a whole new level, partly due to the expanded College Football Playoffs. With 12 teams involved, additional games will be played providing Lanning with the opportunity to earn additional bonuses.

If Oregon reaches the first round of the playoffs, Lanning can earn $150,000. A second round, or quarterfinal game could add an additional $200,000 while a semi-final appearance is worth $250,000. A spot in the national championship game pays $500,000. Lastly, if coach Lanning can claim Oregon’s first football national championship, his annual salary will increase by $500,000 for the following year and all subsequent years of the contract.

Jan 1, 2024; Glendale, AZ, USA; Oregon Ducks quarterback Bo Nix (10), linebacker Jeffrey Bassa (2) and  head coach Dan Lannin
Jan 1, 2024; Glendale, AZ, USA; Oregon Ducks quarterback Bo Nix (10), linebacker Jeffrey Bassa (2) and head coach Dan Lanning lift the offensive MVP, defensive MVP and championship trophy after a victory in the 2024 Fiesta Bowl against the Liberty Flames at State Farm Stadium. Mandatory Credit: Joe Camporeale-USA TODAY Sports / Joe Camporeale-USA TODAY Sports

While the money is certainly important in terms of taking care of family members, coach Lanning has a clear vision of what he wants to accomplish on the football field.

“In coaching, you dream to be at a place where you can both raise your family and win at a high level,” said Lanning. “Oregon has more than exceeded those expectations for my wife, Sauphia, and our three boys, and this will ensure our boys can all graduate from the same school as we continue to grow roots in the community. I am thrilled to be a part of a program that has a shared vision for how to stay on the cutting edge and achieve great success moving forward.”

While that is an admirable position to take, the coaching turmoil that started with the retirement of Alabama coach, Nick Saban, had some thinking Lanning may be tempted to look at some very high-level opportunities at places like Alabama and Texas A&M. However, coach Lanning made it clear from the beginning that he had no interest in leaving Oregon. In fact, he released a video on social media that included clips that discussed his loyalty to the Ducks and included this statement: "If you're scared your coach is leaving, then come play for us. The Ducks aren't going anywhere, and I'm not leaving."

Oregon head coach Dan Lanning leads practice with the Ducks Tuesday, Aug. 13, 2024 at the Hatfield-Dowlin Complex in Eugene,
Oregon head coach Dan Lanning leads practice with the Ducks Tuesday, Aug. 13, 2024 at the Hatfield-Dowlin Complex in Eugene, Ore. / Ben Lonergan/The Register-Guard / USA TODAY NETWORK

Lest we forget, there is one other clause in the contract of note. With the signing of the extension lasty year, Lanning’s salary is fully guaranteed and his buyout increases to $20 million through the duration of the new contract, which can be extended. Accordingly, any team interested in Lanning’s services would have to cough up a cool $20 million to buy out the contract. Before anyone says that’s unlikely, keep in mind that owners and donors obsessed with winning are willing to do just about anything to do so. As such, Lanning’s stated desire to stay in Eugene for the foreseeable future is comforting to Ducks’ fans.

Now, not all incentives are monetary. Some coaches have golf club memberships, car deals, housing considerations, etc. There are likely other benefits available to Lanning, but an unusual benefit states that he and members of his immediate family have occasional access to a donor-funded charter or private air service upon approval of the athletic director.

Speaking of which, Oregon Athletic Director, Rob Mullens had this to say about the contract extension.

“(The) request for a contract extension for coach Lanning is the first part of a bold vision to ensure that Oregon football and Oregon athletics remains competitive at the highest level of college athletics into the future.” Mullens went on to say, “through the incredible generosity of donors we’re fortunate to be able to request an extension of coach Lanning’s contract and also prepare for other significant enhancements to keep Oregon football and Oregon athletics positioned at the forefront of student-athlete support, of innovation and of facility infrastructure — the things that have helped us be so successful.”

Nobody has a crystal ball and can predict the future. However, the match between coach Lanning and the Oregon Ducks seems to be truly special. When a man turns down millions of dollars to coach at places like Alabama, he is a coach to be retained and one that can build a football dynasty in Eugene.

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Mark Lantz
MARK LANTZ

Mark Lantz brings a wealth of experience in sports broadcasting as well as detailed writing when covering all that is Oregon Ducks sports. Mark spent several years covering high school football, basketball and American Legion baseball. He was a play-by-play announcer and color commentator. He also started a network to broadcast high school basketball to small radio stations in Montana. Prior to his retirement in 2022, Mark spent over 10 years writing for a well-known wealth management firm. He wrote about stock market trends, investor behavior, economic and political developments, and retirement related matters, to name a few. His writing style is designed to give the reader insight into Oregon Ducks sports.