Former Louisville men’s basketball head coach Kenny Payne will be on the books for a while — but for a shorter time, and for less money, than his contract originally entailed.
The U of L Athletic Association (ULAA) agreed to pay the 57-year-old Mississippi native a total severance amount of $7,250,000, according to a copy of the separation agreement obtained by The Courier Journal via an open records request.
The payments of $201,388.88 began “on or about” Monday, April 1, when Payne’s employment was effectively terminated without cause, the agreement says. They’ll end “on or about” March 31, 2027.
Between his buyout and his $3,350,000 base salary, he earned approximately $13,950,000 across two seasons at his alma mater; which went down as the worst in modern program history.
When Payne was hired away from an assistant role with the New York Knicks as Chris Mack’s successor, and the Cardinals’ first Black head coach, on March 18, 2022, his five-year contract through March 31, 2028, outlined a severance benefit plan starting at $10 million.
The buyout was set to decrease from $8 million to $6 million on Monday.
In addition to the severance payments, ULAA will cover the monthly cost of health insurance for Payne and any eligible dependents until June 30, 2025, or until he becomes employed in a position that offers coverage. But the agreement says he has “no obligation” to seek other jobs in order to receive his buyout money.
Payne will also retain ownership of a life insurance policy that was valued at $15 million at the time of his hiring. Any policy maintenance or renewal shall be done at his discretion and out of his wallet, the agreement says.
The parties agreed upon a clause stating Payne will not “make any disparaging statements or remarks about ULAA or the university.”
He can respond truthfully to inquiries from regulatory, compliance and governmental entities, or court orders; and he must cooperate “as reasonably requested by ULAA” with investigations — NCAA, etc. — surrounding events that occurred during his tenure.
Louisville’s athletics director, Josh Heird, informed Payne he would not return for a Year 3 on March 13, the day after the Cardinals’ season ended in the first round of the ACC Tournament. Per the separation agreement, his employment officially ended two days later.
Payne left his first head-coaching gig with an overall record of 12-52. U of L suffered its first back-to-back 20-loss seasons in program history, and lost more games by 20 or more points than it won, under his direction.
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