New Details Emerge as LSU Confirms Brian Kelly’s $54 Million Buyout

New Details Emerge as LSU Confirms Brian Kelly’s $54 Million Buyout originally appeared on The Sporting News. Add The Sporting News as a Preferred Source by clicking here.

New details emerged Wednesday in the months-long dispute between Brian Kelly and LSU, with the university formally confirming in a written letter that the former Tigers coach was terminated without cause and is owed “liquidated damages as required” under his contract — a buyout of about $54 million.

The letter, obtained by The Associated Press, clears the way for Kelly to withdraw the lawsuit he filed on Nov. 10. The suit alleged LSU had indicated it could fire him for cause, which would have dramatically reduced the amount owed to him.

Kelly’s attorneys argued LSU representatives had told them the coach was never “formally terminated” the day after LSU’s 49-25 loss to No. 3 Texas A&M on Oct. 25, only for the school to indicate more than two weeks later that it intended to pursue a for-cause firing.

LSU’s letter, signed by newly appointed university president Wade Rousse, states plainly that Kelly was removed without cause. It also reiterates a key provision of Kelly’s 10-year contract: he must make “good-faith, reasonable and sustained efforts” to obtain another job in football while LSU continues paying him, and any salary from a new football-related position would offset what the school owes.

The dispute intensified as LSU cycled through internal turmoil. Four days after Kelly cleared out his office and interim coach Frank Wilson took over, athletic director Scott Woodward resigned under pressure from Gov. Jeff Landry and members of the LSU Board of Supervisors. Landry had publicly criticized Woodward, saying he would not allow him to hire the next football coach and blaming him for authorizing a contract that became a financial burden when Kelly failed to meet expectations.

Kelly’s lawsuit stated that LSU never cited “serious misconduct,” the threshold required to fire him for cause under the contract, which lists NCAA violations, crimes or immoral behavior as qualifying reasons. “Coach Kelly never engaged in any such conduct, and LSU never relied on any incident of cause,” the filing said.

Court documents also revealed the two sides had explored a settlement. LSU initially offered a lump-sum payment of $25 million, later increasing it to $30 million. Kelly rejected both offers but said he remained open to additional proposals if they “made sense financially.” Present-value settlements, which involve discounting future payments to reflect inflation and other economic factors, are common in large contractual disputes.

Kelly, 64, posted a 34-14 record in four seasons at LSU, including three bowl victories, but the Tigers never reached the College Football Playoff. As major jobs opened across college football — including Penn State, which quickly turned to James Franklin before he accepted the role at Virginia Tech — Kelly has yet to secure his next role.

With LSU’s written confirmation in place, the legal showdown appears to be nearing its conclusion. Unless the sides negotiate a revised settlement, the university remains obligated to pay out the remainder of Kelly’s contract, which runs through 2031.