SUMMARY: Urban Meyer, head football coach at the University of Florida, recently received a contract extension that will pay him $4 million per year. The coach of the current NCAA national champions will become the first coach at a Southeastern Conference school to earn that amount. The new contract extension highlights just how competitive the market for top-notch coaches is in college sports.
- The average salary for major college coaches now tops $1 million per year. Salaries for professional athletes and collegiate coaches in major sports are skyrocketing. In what ways might these high salaries address the major responsibilities of human resource management?
- In terms of merit pay, what factors might justify Coach Meyer’s high salary and contract extension?
- What are the potential consequences if schools such as the University of Florida do not offer competitive salaries to their coaches?
SOURCE: D. Jones, “Florida, Meyer Agree on Extension Worth $4M a Year,” USA Today (Retrievable online at http://www.usatoday.com/sports/college/football/sec/2009-08-03-florida-meyer-extension_N.htm)