By Rich Hefner (PITTcocks on the POV)
Is Pat Narduzzi being paid $3.5 million? Is it conjecture based on a false assumption from known published figures? Or is it a reasonable guesstimate? Let me lay out some known facts based on my research.
Paul Chryst (PC) was PITT’s head football coach from early January 2012 through early December 2014. He was replaced by Pat Narduzzi (PN). PN signed a contract in late December ’14 & assumed duties in early January ’15. Per reports, it was a 5 year contract running from 2015 thru 2019. In December of 2015, the late great AD Scott Barnes (SB) signed PN to a new contract that added a 2 year extension to PN’s original 5 years. His contact would now expire in 2021. In December of 2017, current AD Heather Lyke (HL) signed PN to a new contract/extension that extended PN term of employment through 2024. No contract terms or conditions were released by PITT at the announcement of these signing/extensions.
Everyone has seen the USA Today report on college football head coaching salaries. For your entertainment here is the link for 2018.
As usual Alabama’s Nick Saban is the highest paid at $8,307,000. PN comes in at #42 with $3,017,718. Some other fun facts, Do you know the USA report is sortable? Click on the any header & it will sort the report by that header. Try it with header “Max bonus” & up will pop up “Stoops, Stoops, Stoops” from Kentucky with $3,100,000. Also, if you click on the items highlighted in red in any column heading explanations, there is more specific info or history provided.
But what makes up the numbers behind the USA report. That’s where methodology comes into play. If you drop down to the bottom of the report below the data, there is a line reading ” To see the methodology behind this data, click here “.
They give an explanation of what is included or not included in each column. This report in general is for the current contract year. I am assuming it is the calendar year 1/1/2018 thru 12/31/18 except for bonus paid which are from 5/15/17 thru 5/14/18.
A while back, someone asked if Brian Kelly of ND is only paid $2,129,638. The answer is probably more. Below the explanation of specific column headings, there are specific explanations pertinent to some individual schools. Since the schools are in alphabetical order, slide down to Notre Dame & read what it has to say.
Well that leaves PITT. What does the school have to say about pay. Well in short – nothing. Or at least to any person who asks. But there is info out there. Due to the State of Pennsylvania’s Right to Know law we have this link:
The link takes us to a disclosure file of all IRS Form 990 & attachments. So what is Form 990? The Form 990 title says it all: “Return of Organization Exempt from Income Tax”. Why do we care? This is the form that tells us what PITT paid PN (Well specifically Form 990 Part VII & in greater detail Sch. J of Form 990 does).
Before I go into my findings, let me explain some details. PITT reports on a fiscal year. Their last reported fiscal year began 7/1/2016 & ended 6/30/2017. If you open the link above, the first of 10 links is titled Fiscal Year 20 17. If you click on it up pops 20 16 Form 990 for fiscal year 7/1/16 – 6/30/17. It’s a little confusing between header title & Form 990 header
Once you have opened the link to Form 990 for FY 2016, scroll down to PITT numbered page 9. (The PITT page # is on bottom center of page. Do NOT use the IRS page number at top right.) PN is shown to have received $2,979,242 in reportable compensation (W-2, 1099 income). PN also received $39,476 in other compensation for a grand total of $3,017,718. (this is the same amount on the USA Today report. Note: PN is one of 5 “Highest Compensated Employees” the “x” in column C.
While you have the link open to Form 990 for FY2016, scroll down to Sch. J, specifically Sch. J Part II (PITT page 90). The schedules are in alphabetical order & is about 2/3 of the way down. There you will find the info on officers, trustees & other highly compensated employees. This report breaks down compensation into 5 broad categories: Base Compensation (BC), Bonus & Incentive Compensation (B&I), Other Reportable Compensation, Retirement & Other Deferred compensation, & Nontaxable Benefits. There is also a total column.
I looked at most of the Form 990’s, specifically looking for football coaches compensation. The list below is for the PN’s & PC’s years at PITT. I am only going to show Base Compensation (BC), Bonus & Incentive Compensation (B&I), Other reportable compensation, & All Other (total of remaining 2 categories), & Total. The year I will show is from the year shown on IRS Form 990. Remember it is a fiscal year so 2016 runs from 7/1/16 – 6/30/17.
FY 2016 PN $1,822,250 1,058,333 97,159 39,476 $3,017,218
FY 2015 PN $1,312,782 450,000 26,266 38,687 $1,827,735
FY 2014 PN $0 0 0 0 $0
FY 2014 PC $1,052,097 587,500 22,375 37,950 $1,699,922
FY 2013 PC $1,042,079 583,333 22,526 36,782 $1,684,720
FY 2012 PC $1,020,881 500,000 22,549 35,327 $1,578,757
If you are following my walk through, a question you may have is where is PN for the part of the FY 2014 he was employed. (1/1/2015 – 6/30/15)? My best guess is he was NOT one of the 5 Highest Compensated Employees that PITT must report. Actually PC is not shown for his partial year FY 2012 (1/1/2013- 6/30/2013). Dave Wannsted & Michael T, Graham are included in FY 2012 reporting.
After all this data & background, I still have not answered the original question: Is PN making $3.5 million this year. I also will add a second question. Is that $3.5 million comparable to the other coaches making $3.5 million in the USA Today report?
Lets break down some $’s based on the breakdown above. First up – “Base Compensation”(BC)
All non-profits must report salaries & benefits for trustees, officers, directors, key employees, & the top 5 Highest Compensated Employees. For the FY 7/1/14 – 6/30/15, Susie McConnell-Serio was the lowest of the reported group at rounded total compensation of $540,000. This means PN’s total was less than that amount. For various reasons, I am assuming that PN signed his first contract for $1M. Half of that is $500,000 & with no bonus/incentives & the other areas of compensation were probably less than $40,000, that makes Susie’s total greater.
Since we estimated reported Base Compensation for 1/15 – 6/15 we can now convert FY base to Calendar base & adjust for the two contacts/extensions. (Note-#’s below are rounded for my convenience.)
FY end 6/30/15 $500,000 (est.) – Calendar 12/31/15 $1,000,000 (2500,000) Original Contract
FY end 6/30/16 $1,312,782 – Calendar 12/31/16 $1,625,500 (1,312,782-500,000)2 SB ext.
FY end 6/30/17 $1,822,250 – Calendar 12/31/17 $2,020,000 (1,822,250-812,750)*2
We will not know anything about PN’s Base Compensation for FY 7/1/17 – 6/30/18 until sometime in May of ’19 when PITT files & reports its annual IRS Form 990. We do know that a contract extension was made by HL in Dec ’17, so it is safe to assume a raise is in order. I am assuming a $500,000 upgrade in BC to $2.5M. Why? Check the USA Today report. $2.5 M is now puts him in a pay range comparable to a few other ACC coastal teams.
Now for B&I. This category may include such items as wins, bowl appearances, NCAA APR scores, (Petrino at Louisville gets $400K for any APR score above 920. A really low bar since 919 or lower draws the NCAA’s ire,) 1’st TD scored in a game or leading at halftime, (Randy Edsell at UConn has both in his contract.) amongst other items. Bonus money is dependent on the contract which for PITT/PN we do not know..
PITT has a B&I breakout, For FY’14 PN showed $0. Of course it should. Jan. – June is not bonus earning time for a football coach. It’s bonus paycheck cashing time. In FY ’15, PN earned $450,000. Reasonable considering his team won 8 games & made an ACC Tier II bowl. In FY ’16 PN earned $1,058,333. Well, he did win 8 games again and upgraded to Tier I bowl. The 8 wins & Tier I should be worth more than $450,000 and I think $150K is the upgrade in bonus. Once again we don’t know PN’s contract but it is my contention that PN received a one time signing bonus. $400,000K seems to me about right. Makes up for the low original contract. But then again, it could be all football related.
So what about B&I for FY 6/30/18 It should be a lot lower than $1.058M after 5 wins and no bowls. But PN/HL did sign another contract extension. I assumed that in the prior extension (PN/SB) that there was a signing bonus of $400K. Is there another signing bonus? Is it more or less. Was there any interest in PN after the ’17 season that didn’t make the news? Was it HL getting on PN’s good side? I am going to go with another $400K.
I am not going to talk about the two remaining categories: Other reportable compensation, & All Other, about $140K in total. It’s pocket money or chump change (while not to me & probably you & if it is please chip in on a new OCS). I will say that in reading the USA Today report methodology it is my interpretation $40K (all other category) would be excluded.
So how much is PN being paid for ’18? I say $2.5M. in BC, $550K in B&I ($400K (the I of B&I) & $150K in B (I like giving out bonuses for the fun of it.) & $140K in all other. This is a total of $3,190,000.
Now, is this amount comparable to the USA report. The answer is NO. If you read the methodology, a one time signing bonus is included in school pay but actual bonus (for contact provisions) paid is a separate amount & is NOT included in school pay. So while my above figure of $3.190M is what would show on a W-2, the USA Today would only show $3.040M. I really didn’t give PN a B of $150K for the fun of it but to prove a point. I do believe he will still get some amount of bonus even after the 5 win, no bowl season.
I really enjoyed this exercise. I learned a lot but I also learned such things as Todd Graham real name is Michael T. Graham. I also learned that Arizona State paid PITT $1,000,000 as a buyout payment. First one to report where that came from (on IRS Form 990) has way to much time on their hand but I will give that person a hearty well done. I also found out how much Wanny was reported to receive by PITT and it is more than what is shown on the USA Today report.
I will revisit this in May of ’19 to see if my assumptions are correct. You can also come up with your own assumptions and we can debate.