Bill Belichick’s UNC contract? It’s not yet signed, raising ‘consequential’ questions about a $10 million buyout

Since Bill Belichick has agreed to become the next coach of the North Carolina Tar Heelsquestions about whether he would return to the NFL surrounded him. Many have pointed to his buyout clause with UNC: $10 million if he ends his employment at the school before June 1, 2025, but only $1 million after that date.

Would Belichick write that check himself, after making more than $20 million in each of his final seasons with the Patriots? Or would the multi-billion dollar NFL franchise owner who hired him consider it the cost of doing business?

Currently, there is no fully executed and signed contract between Belichick and UNC, sources told CBS Sports — and the school confirmed — this week. Industry sources say that could create a legal gray area over how much the buyout could be if Belichick leaves for the pros.

Belichick signed a proposed term sheet with UNC on December 11. This defined the basic and somewhat typical requirements for a top college football coach. A gap of several months between signing a term sheet and executing a final contract is common among college ranks, industry sources said.

A day later, during his introductory press conference, Belichick was asked about the fears people might have about him leaving UNC for the NFL.

“I didn’t come here to leave.” Belichick said to North Carolina’s applause faithful present.

The term sheet signed by Belichick is officially known as the Proposed Terms and Conditions of the Contract. It begins with a two-sentence paragraph that, as one NFL source with a legal background put it, is “consequential” to the question of what will or will not be legally enforceable.

“The University proposes to enter into an employment agreement with Bill Belichick to serve as head football coach. It is understood and agreed that this proposed terms and conditions will not constitute a binding agreement, and the parties have intends to negotiate promptly and in good faith to finalize these terms and conditions into a long-term agreement.

Belichick and Nate Knuffman, UNC vice chancellor for finance and operations, signed the term sheet; however, this four-page document states that it does not constitute a binding agreement. A UNC spokesperson confirmed Wednesday that the term sheet is the only document signed between Belichick and the school.

Industry sources agree that it is common at the college level for coaches to begin work without having a fully signed contract. Indeed, the UNC spokesperson said the school “had coaches here for a year before they had an actual contract.”

“It’s not unusual to sign (a term sheet) and then have the full contract take a while,” said one agent who works with professional and college coaches. A second coaching agent, who also works with college and professional coaches, agrees: “Schools are dragging their feet like crazy, and I don’t know why.”

All sources contacted for this story agreed: If Belichick left without paying a buyout, a legal dispute would likely arise for all or part of the $10 million.

The term sheet calls for a five-year contract worth $10 million per year, with the first three years guaranteed. It outlines the bonus structure for wins, playoff performances, academic and coaching honors. It also includes the usual conditions regarding benefits for head coaches, such as courtesy cars, moving expenses and outside income.

If Belichick terminates the deal without cause before June 1, 2025, a $10 million payment would be made by – or on behalf of – Belichick. This buyout drops to $1 million after June 1. Regardless, the buyout “shall be payable to the University within 180 days of the date of termination.”

Given Belichick’s wealth and the even greater wealth of NFL team owners, sources within the UNC community have expressed discomfort with Belichick’s buyout. Exacerbating that unease is the fact that it drops to $1 million before Belichick coaches a game at UNC.

Before accepting the job in Chapel Hill, Belichick conducted surveys throughout the NFL to gauge teams’ interest in him as a coach. He personally called the Jets, who were previously considered a no-go destination. At the time he took the North Carolina job, there were only three vacancies in the NFL: the Jets, Bears and Saints.

Since then, the Patriots, Jaguars, Raiders and Cowboys have opened their doors. Removing the Patriots from the pool of potential landing spots, that’s three new jobs that have fueled speculation about a potential Belichick return.

Last week, UNC general manager Michael Lombardi categorically shut down any rumors that Belichick would like to leave the Tar Heels. Lombardi, who earns a base salary of $1.5 million in his role and previously worked for Belichick on the Patriots staff, told The Pat McAfee Show that he and Belichick are “1000 percent committed” to the ‘school.

“Bill Belichick is committed to North Carolina. He’s committed to me, he’s committed to the university,” Lombardi said. “There have been no conversations about anything. This is the best job we could have at this time in our lives and we’re really going to embrace it and work hard to make North Carolina proud .”

Belichick built a staff at UNC, keeping tight ends coach Freddie Kitchens and bringing in former Patriots strength coach Moses Cabrera for the same role. He brought players out of the transfer portal and was seen on high school campuses across the East Coast recruiting for the future of North Carolina football.

He is publicly presenting to the football community that he is here to stay.

“(If) you give your word to all these people who are hiring you, to the kids, to the parents of these kids, to your commitment to the university, it would be really bad to leave,” one NFL assistant coach said. “It would be different if he hadn’t just accepted AND if he hadn’t done what he had to do to get him to take the job – hold up his dad’s sweatshirt, etc.”

But now one of the NFL’s premier franchises has a vacant head coaching position with the Dallas Cowboys. They’ve won 12 games in three straight seasons before a 7-10 season this year, and Dallas has one of the best teams among teams with jobs available.

Sources described the long-standing relationship between Belichick and Jerry Jones as good. A source wondered if Belichick would want to “stick” to Robert Kraft by signing with the Cowboys and Jones.

When it comes to interviewing college coaches for NFL jobs, the league takes this into account in its anti-tampering policy. First, and most importantly regarding Belichick, “(before) having any discussions with a college coach or other university employee, the club must determine whether the candidate is under contract or not,” it reads. in politics.

This would obviously be a central question with Belichick considering the presence of the term sheet but the absence of a long-term contract. The policy states that if the coach is not under contract, the NFL team can proceed without contacting the school. But in “an effort to foster strong relationships with colleges, clubs are encouraged to provide advance notification to the school athletic director.”

If the coach is under contract, that team must seek permission from the school’s athletic director before contacting the coaching candidate. The policy states that it is “strongly recommended to receive such authorization in writing.”

That kind of gray area doesn’t exist when it comes to NFL coaching contracts. The NFL requires that any head coach or assistant be under a written contract with the team by the summer, otherwise that coach “is not permitted to perform coaching duties in training camps and during the remainder of the playing season.” This coach cannot be on the field until a written agreement has been signed and approved by the league office.

Certainly, Belichick and his top lieutenant say he’s sticking with North Carolina. But a move to the NFL could happen more cheaply and more discreetly than previously thought.