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.

QUESTIONS:

1. 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?
2. In terms of merit pay, what factors might justify Coach Meyer’s high salary and contract extension?
3. 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)