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Brian Kelly is no longer the LSU football coach, but he will still be paid by the school due to his contractual buyout. Confusion now surrounds that payment status as a result of contrasting media reports.
The Tigers are supposed to pay $53 million for Kelly to leave. The initial belief was that the coach would not accept a penny less.
Kelly was hired by the program in 2021. He signed a 10-year deal worth $95 million. His teams went 34-14 across 3+ seasons, but the most recent campaign has gone sideways.
LSU was expected to compete for a national title. Instead, it’s gone 5-3 through eight games.
The Tigers opted to move on from the coach after a blowout home loss to Texas A&M.
What is Brian Kelly’s buyout?
On paper, it appears to be around $53 million. Boosters were rumored to have begun fundraising for that total after the latest loss.
There is language written into the contract to protect LSU, however. A mitigation clause was put in place. Whatever Kelly makes at his next stop offsets the Tigers’ responsibility.
Brian Kelly had 6 years, $52.4M remaining on his LSU contract with thru 2031.
He’s owed 90% of that, + 90% of his remaining 2025 salary, which calculates to just under $54M.
The contract did contain offset language however, meaning LSU’s cost will be reduced by whatever Kelly…
— Spotrac (@spotrac) October 27, 2025
The mitigation clause is similar to what was seen at Penn State with James Franklin. Future salary will lessen LSU’s financial blow.
There have also been reports of negotiations between the two parties to help reduce the Tigers’ cost. A lump sum, for example, could be a happy medium.
LSU pays less. Brian Kelly gets all of his buyout money up front as opposed to long, drawn out payments. Both sides can benefit.
For now, Brian Kelly will continue receiving his contractual compensation from LSU at roughly $800,000 monthly.
The two sides continue working toward an agreement over the $53 million buyout figure (a lump sum perhaps?), but such a resolution could be weeks or months away.
— Ross Dellenger (@RossDellenger) October 27, 2025
Early feedback, however, suggested that the coach had no intention of working with his former employer. He would not accept less than what he was owed.
Matt Moscona of ESPN Baton Rouge said Kelly rejected an initial settlement offer.
A meeting is currently taking place with Gov. Landry, members of the Board of Supervisors and key boosters. AD Scott Woodward is not involved in this meeting.
Primary topics include Brian Kelly’s buyout and who would serve as interim head coach—likely Frank Wilson but some…
— Matt Moscona (@MattMoscona) October 26, 2025
Is Kelly done coaching?
The mitigation clause is notable as it can reduce the buyout total significantly. Another college football program would likely be willing to pay Kelly millions to lead its team.
But does he want to return to coaching? Football Scoop suggests that LSU could be his last stop.
I spoke with an agent earlier this week who knows Brian Kelly quite well. I asked him if LSU were to fire him, what would BK do next.
“Enjoy that $50M. He’ll never coach again.”
Kelly could, instead, take a media role at a much lower pay rate. LSU would still be on the hook for the majority of that $53 million total.
Can a settlement be reached?
An unconfirmed rumor further muddied the waters. New Orleans based radio host Kaare Johnson claimed that a settlement price of around $20 million would be reached. He cited a “morality clause” in his reasoning.
From my sources with very close ties to the LSU athletic department and the LSU board of supervisors, Brian Kelly and @LSU settled his buyout for around $20 million. Or around $30+ million less than was actually owed to him. Utilizing the “morals code” in his contract.
— Kaare Johnson (@KaareJohnson) October 27, 2025
Morality clauses “require an employee to abide by certain ethical standards for the lifespan of the contract with an employer,” according to US News. “They are created to maintain the employer’s reputation and protect it from public embarrassment…
“Employers have broad discretion over that determination. For some, criminal behavior is regarded as worthy of contract termination. For others, it might be behavior that is at odds with the employer’s institutional values.”
There is no evidence of a violation on Kelly’s end. Still, the rumor created more confusion given the coach’s initial refusal to settle.
At this point in time, it seems that negotiations are still ongoing. It could take weeks, or even months for the terms to be worked out.
Multiple sources have confirmed to me today that LSU and Brian Kelly have not agreed on a buyout settlement, despite reports suggesting otherwise.
As @RossDellenger reported, LSU will continue paying Kelly per his contract with a buyout resolution to be determined at a later…
— Matt Moscona (@MattMoscona) October 27, 2025
Both sides will do what’s in their best interest. We’ll likely have to wait a while to learn LSU’s actual responsibility regarding Brian Kelly’s buyout.