FAYETTEVILLE -- John Calipari instantly became the highest-paid employee in University of Arkansas athletics history Wednesday when his incentive-laden five-year contract for $7 million per year was unanimously approved by the UA Board of Trustees during a morning meeting in Little Rock.
Calipari, 65, is the second-highest paid coach in college basketball behind Kansas' Bill Self, who makes around $9.6 million per year, according to a USA Today data base.
Calipari is the winningest active coach in Division I with an on-court record of 855-263 (.765) and a Naismith Memorial Basketball Hall of Fame inductee in 2015. His Kentucky Wildcats won the 2012 national championship, and he has two other title game appearances, six Final Fours, 12 Elite Eight and 15 Sweet 16 appearances on his resume during a 32-year career.
His minimum earnings for the five-year period at Arkansas will be $38.5 million, with the base salary accounting for $35 million, plus a $1 million signing bonus and retention bonuses of $500,000 per year totaling $2.5 million for the term of the deal, which will run through the 2028-29 season.
UA Chancellor Charles Robinson, UA system president Donald Bobbitt, UA Athletic Director Hunter Yurachek and Calipari signed the agreement, which was dated Tuesday.
Calipari's deal eclipses the annual pay of fifth-year Arkansas football Coach Sam Pittman, who makes a base salary of $5.25 million plus an average of $1.1 million in deferred pay per year to take his annual compensation to $6.3 million.
Calipari's contract includes a non-compete clause with other SEC institutions. He would receive one-year rollovers to extend his deal for each of the program's first two appearances in the NCAA Tournament under his guidance that could take the contract to seven years.
Yurachek, associate athletic director Matt Trantham and UA trustee Ted Dickey served as the three-member search committee that landed Calipari. The process began with discussions between Yurachek and Calipari in a hotel room in Phoenix in the lead-up to the Final Four last weekend. John Tyson, chairman of Tyson Foods and a long-time friend of Calipari, helped arrange the meeting.
When Yurachek expressed his thanks to Tyson on the stage at Walton Arena before Calipari was introduced Wednesday night, the crowd of 7,000-plus gave Tyson an extended standing ovation.
At his news conference after the public introduction, Calipari gave further thanks to Tyson, saying the process began with a phone call from him last Thursday.
"My friend John Tyson, whatever John Tyson would ask me to do, I'm doing," Calipari said.
Then Calipari re-enacted what Tyson talked to him about: "I need you to meet with our AD. He's going to go through some stuff. I want you to talk to him and help him out.
"He's a good man. You're going to love meeting him, and we did. All of a sudden, Saturday and Sunday, we did."
Calipari said he did not want to do anything publicly during the Final Four, which was played on Saturday and Monday, but word leaked out the two sides were in negotiations.
UA trustee Kevin Crass commended the school's attorneys during the board meeting for working through a "complex document" in a short time frame.
"I also say thanks to the chair and whomever else was responsible for involving this board by sending this contract and allowing us to know the specifics so that we can exercise our role in the governance structure to approve it," Crass said. "We're all excited about it, but I'm proud of the fact that we have governed properly."
Robinson, who was celebrating his birthday Wednesday, added perspective on Calipari's presence to the board meeting.
"When I have walked the campus the past couple of days, there has been a buzz in the air," Robinson said. "I know there's a lot of excitement out on the campus about this hire."
Calipari's departure from Kentucky did not include a buyout based on available public records.
The incentives in Calipari's UA contract are plentiful. His annual salary can increase up to $1.25 million based on a series of on-court achievements, highlighted by a raise of $500,000 if the Razorbacks win the NCAA national championship.
He would receive a raise of $350,000 for leading Arkansas to the Final Four, a bump of $250,000 for a Sweet 16 appearance, $100,000 for making the round of 32 in the NCAA Tournament and $50,000 for appearing in the tourney.
The salary increases apply to the highest of those achievements in a given year and their combined total cannot exceed $1.25 million for the term of the contract.
The buyout conditions for both sides are interesting. The UA would owe him 75% of his remaining salary and other compensation if the school elected to terminate his employment.
Calipari would owe a $6 million buyout if he leaves on his own accord before the end of the contract.
There have been reports that Arkansas would be packing a hefty Name, Image and Likeness war chest to have at Calipari's disposal. Yurachek was asked about the NIL potential at the news conference.
"I will say that Coach Cal and I talked about NIL robustly," Yurachek said. "We talked about it on the plane. Him and I are on the same page of where it needs to be for us to be competitive.
"We've got some ways to go to get there. Reports make it sound like it is a done deal and the money's in the bank. What I will tell you is that's not the case. We've got a pretty good program in place, but we're going to need help from people across this state to make sure that we give Coach Cal the tools that he needs to put a great team on the floor, not only this year but next year and the following year."
Newly hired Arkansas men’s basketball Coach John Calipari (left) and Athletic Director Hunter Yurachek speak Wednesday during an introductory news conference at Walton Arena in Fayetteville. Yurachek, associate athletic director Matt Trantham and UA trustee Ted Dickey served as the three-member search committee which landed Calipari. (NWA Democrat-Gazette/Hank Layton)
Arkansas fans hold up signs Wednesday during an introductory news conference for incoming Razorback men’s basketball Coach John Calipari at Walton Arena in Fayetteville. (NWA Democrat-Gazette/Hank Layton)