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It’s breaking news that Sean Payton wants $20-25 million a year as part of his next coaching job. But it’s really not news. It’s a given.
When it became clear last year that Payton to the Dolphins was a behind-the-scenes deal derailed by Brian Flores’ lawsuit, it was reported that the Dolphins paid him $100 million for either a five-year or four-year contract . Which would have resulted in an average of $20 million or $25 million a year.
It would have been interesting to see if Payton lowered his expectations of coaching the Chargers given the presence of quarterback Justin Herbert. But that won’t happen unless Payton sits out in 2023 and the Chargers make a change in 2024.
Sitting out in 2023 would be very expensive for Payton if someone is willing to pay him $20 million to $25 million a year now.
While that sounds like a lot, here’s the article we posted on December 1st, 2021: “The full extent of coaching compensation is not widely known as many teams used related companies to give extra money to top coaches guide. Since there is no salary cap, no internal rules are broken. The practice would only become relevant if, for example, entry-level coaches ever attempted to claim in court that the 32 separate companies that make up the NFL colluded to keep head coach salaries low.”
Some believe collusion takes place when it comes to paying coaches. If the full extent of coaching salaries had been available over the last 50 years, the rate at which coaching salaries have increased would likely be far less than the rate at which player salaries and overall revenues have exploded.
There is no salary cap for coaches. There is also no lower salary limit, no minimum expenditure. NFL teams have generally done a good job avoiding bidding wars for coaches, with most teams willing to hold the line — like the Giants did three years ago when the Panthers overspent on Matt Rhule.
Things could get interesting this year if the Broncos and Panthers tug of war over Payton. They are the two wealthiest owner groups, and the Wal-Mart mega-billionaires who bought the Denver franchise have far more cash than Panthers owner David Tepper and his $17 billion net worth.
Our guess? The Broncos, sensitive to the fact that they’re the newest members of the club oligarch, won’t be jumping the curve anytime soon. That would most likely see Tepper bridging the gap between what the best coaches make and what the best players make by paying Payton more than $20 million a year.
Tepper paid more than $20 million combined for quarterbacks Sam Darnold and Baker Mayfield in 2022. Dollar for dollar, that money would be far better invested in an accomplished coach like Sean Payton.