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NFL coaches eyeing college jobs

Impending loss of pension plans has many assistants concerned. Jack Bechta

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I have the privilege of advising several NFL coaches on their contracts and career decisions. Larry Kennan of the NFL Coaches Association encourages coaches to have agents, but most teams have internal policies that prevent them from recognizing agents for any position below coordinator or, in some cases, head coach. As a result, Kennan acts as the voice for these coaches, and advisors such as myself help counsel them in their dialogue with management. However, the coaches are not unionized and are fearful of doing so.

Last March, the NFL passed a resolution giving all teams the individual flexibility and expanded option to control their retirement plans for front office and non-player employees, including coaches. To date, nine teams have decided to discontinue retirement funding for their coaching staffs. All benefits earned through 2008 are funded and are earned by all coaches with those nine teams.

Tom Moore and Peyton ManningAPColts offensive coordinator Tom Moore (left) had originally decided to retire due to pension issues.

Kennan believes that all teams, with the possible exception of two, will phase out their coaches’ pensions over the next two years. This has left most NFL coaches with a sinking feeling. In addition to the pension concerns, owners are also asking coaches to take a pay cut if there’s an NFL lockout or strike. Language for work-stoppage-related salary reductions started creeping into coaches’ contracts about two years ago. Currently, management is asking coaches to accept salary reductions of 50-75 percent of their 2011 salaries, depending on the length of a possible work stoppage.

I know of one team that has asked its coaches to take a salary reduction at their arbitrary discretion with no definitive start date. This NFC team could reduce salaries to whatever level it chooses, or eliminate them altogether, as early as March in anticipation of a lockout or strike. Once again, this doesn’t sit well with coaches and has them quietly huddling to discuss their options because many have already been offered extensions but have yet to sign. Yes, this is going on right now during the season and is a distraction for some staffs.

Many NFL coaches I’ve spoken to the past few months have voiced frustration and concern about their futures. I’ve heard of one case in which Kennan was denied entry to a team facility to talk to coaches and represent their grievances. This leaves coaches looking to the head coach to step up on their behalf. I’ve also heard, but can’t confirm, that one AFC coach told his team owner that if he pulled the pension, “you will have my resignation on your desk.” Only coaches with some clout and a ring can pull this off. The situation actually has put some head coaches in uncomfortable positions. If they go to ownership and demand a pension, they risk their own job security. If they don’t, they risk losing the loyalty of their assistants.

The pension problem has some NFL coaches looking to catch on with teams like the Eagles, who take good care of their coaches, have a pension and have a leader like coach Andy Reid, who has juice with the owner.

Owners have to be sensitive to the DNA of coaches. Coaching in the NFL is an insecure job because you’re judged on your wins and losses. Additionally, coaches see themselves working for the head coach, not ownership. The head coach gave them the job, and that’s where their loyalty is. Pulling the pensions from this group will create mistrust and align the coaches more with the players than with management. Can you say union?

Andy ReidAPEagles head coach Andy Reid.

An NFL coach works long, hard hours and on average has three or four children whom they usually place in private schools. In addition, they’re typically stuck with two or three mortgages on homes they can’t sell because of the real estate bubble. I tell my coaches, “When you’re in the coaching business you’re also in the real estate business because you have to move around so often.”

I would guess that 80 percent or more of NFL coaches are married. Their wives usually handle the finances, the moving and the day-to-day management of the kids and household. Trust me when I say this: Wives do not like having their husbands work without a pension. The real-world dynamics can result in the head coach’s wife having to listen to the concerns of the assistants’ wives. All in all, none of this is good for the morale of a coaching staff and its families. It also can put the head coach in the middle, and possibly in danger of losing his staff.

Taking away the coaches’ pensions now has many assistants looking to college football for potential jobs. Interestingly, it was the stability of the pension that attracted most coaches to take jobs in the NFL over college. So don’t be surprise if you see a migration of quality NFL coaches to the college ranks for their next gig.

Many assistant coaches feel awkward talking to management and even their head coaches about the pension and work-stoppage issues. Most feel that doing so may cut their careers short.

In fairness to the owners, they’ve compensated coaches very well over the years, especially in the past 10 years. The league office has provided a solid pension solution, but it’s now out of their hands and back with the owners. I believe the commissioner’s goal was to give owners “flexibility” in funding choices, not to eliminate them entirely. If the trend of stopping pension funding continues, you’ll see the teams with pensions attract the best coaches, who will be working with highest morale.

Eliminating these coaches’ pensions is a bad idea. It’s like taking the lifeboats off a ship without telling the captain -- then asking him to keep the crew’s morale high and beat all the other ships to port. The crew will keep working hard, but it will always have one eye on the ship with lifeboats.

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Comments

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piercy
Nov 17, 2009
06:31 AM

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ScottR.
Nov 17, 2009
10:11 AM

Traditionally, in order to obtain a substantial benefit from a pension plan one must work about 20 years for a company. These coaches are not working that long for one team so I think a league wide NFL pension plan makes more sense over an individual team pension--one might collectively have 20 years in the NFL but almost never with with one team. Sounds like the only way these coaches will ever get their pensions back is if they unionize and collectively bargain.

The league and the owners are really being "penny wise and pound foolish" in this case. I know times are tight but certainly something can be worked out between the owners and its hard working assistant coaches.

Hallcyon
Nov 17, 2009
10:11 AM

Who are the teams?

AtomicLeo
Nov 17, 2009
10:36 AM

The NFL needs to get off t's butt and get a CBA in place. The greed of the owners is gong to kill the popularity of the NFL. There's plenty of money to go around.

Giles
Nov 17, 2009
11:00 AM

Stories like this are why this is my favorite NFL related website. You don't get this type of information anywhere else. Great job Jack and all of the Post!

Jason Wolf
Nov 17, 2009
12:49 PM

This article is insightful but I find two major flaws in your argument.

First, you neglect to mention the average salary of an NFL assistant coach. I am guessing that the average must be at least six figures, although the number may be skewed if you include the low-level coaches such as quality control assistants and video coordinator types.

Second, and related to the first point, you gloss over the fact that there are very few Americans who have pension plans any longer. Other than government employees, and maybe a few major corporations, Americans are now on their own for retirement. The concept of the employer taking care of their employees until death is outdated. Most people have an IRA or 401(k). The IRA contribution maximums have risen over the years. I hope you are counseling your clients to maximize their own retirement contributions in this regard. These assistants can afford to maximize their contributions every year. This would seem to be a no-brainer. So the bottom line is that these assistant coaches are now just like almost everyone else who doesn't have a pension.

Also the comment above about how long it takes for a pension to vest is a good point. How many people remain with the league, or the same team, long enough for a pension to vest? I doubt it is a high number.

Sonny L.
Nov 17, 2009
03:37 PM

Welcome to the real world where company pensions went the way of the dinosaurs.....

That being said, I don't blame them for going to the college game if it better meets their concerns.....

Jack Bechta
Nov 17, 2009
05:08 PM
Jack Bechta

Another concern/frustration for the coaches is that the current plans in place have no portabilty. Therefore, the clock would have to restart each time a coach moved to a new team. Tthose coaches who would have been eligible for early retirement at age 58 are especially affected.
The teams: Bills, Cards, Jags, Pats, Cowboys, Saints, Falcons, Ravens, Texans

Snake Plissken
Nov 18, 2009
01:44 AM

Well with the NFL losing money hand over fist I can understand cutting back on compensation to their important employees.

I mean pensions and health costs aren't a write off are they?

Makes me want to puke. When do we start out sourcing our coaching staff to Malaysian phone rooms. Meanwhile my Direct TV Sunday ticket bill is FOUR F#$%ing times what I paid ten years ago. The owners can kiss my pumpkin on this one.

sonny l.
Nov 18, 2009
09:45 AM

Jack,
You mentioned one AFC coach who said he would submit his resignation if his team pulled funding.... and said he would need clout and a ring to pull it off.


... well if NE already pulled funding and BB hasn't resigned, the only other coach with a ring in the AFC is Tomlin... other than him, Fisher hasn't got a ring and after this year, not much clout, so i don't think the rumor is true...



Jason Wolf
Nov 18, 2009
04:00 PM

Another concern/frustration for the coaches is that the current plans in place have no portabilty. Therefore, the clock would have to restart each time a coach moved to a new team. Tthose coaches who would have been eligible for early retirement at age 58 are especially affected.
The teams: Bills, Cards, Jags, Pats, Cowboys, Saints, Falcons, Ravens, Texans

Jack, you are proving my point. Unless these pensions vest after an unusually short period, such as three to five years, this means the pensions are functionally useless and the coach would be better off maximizing his IRA contributions or with another private retirement plan. The average tenure for an assistant coach in the same position is about four or five years, right? I assume you can count on one hand the number of assistant coaches who have 20 years with the same team. This means the pensions are a waste, and should be administered by the league or union so they can be portable.

CW
Nov 19, 2009
11:21 PM

Another great post! You are a must-read on NFP! Thanks for taking the time to write your columns.

kwin1979
Nov 20, 2009
05:24 PM

Pensions? LOL

I didn't even know people still got these. In today's economy, I doubt most will feel sorry for these 6-figure men.

Marko
Nov 23, 2009
11:27 AM

Jack,

Please give my best, and all other Packers fans best, to Al Harris. We're sorry to see him injured and wish him a speedy rehab.

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