Indiana coach Tom Allen has received yet another raise.
The school announced Monday that Allen’s contract has been restructured to pay him annual compensation of $4.9 million per year through the 2027 season. It’s Allen’s second new contract in 15 months, this time following a historic 2020 season.
In Dec. 2019, Allen signed a new seven-year contract worth $27.3 million. That contract increased his expected annual earnings from $1.8 million, among the lowest pay rates in the Big Ten, to $3.9 million, which was more in line with his conference counterparts. It still ranked 10th among 14 Big Ten coaches in salary, though, according to USA Today’s database of college football coaches.
Allen will now earn another $1 million per year in annual compensation. According to USA Today’s current figures, that has Allen more in line with Iowa’s Kirk Ferentz, who ranked sixth in the conference at $4.9 million of scheduled annual pay. Ferentz was also among the top 20 football coaches nationally.
As the Hoosiers get ready to start spring practice Tuesday, Allen’s new deal sends a message.
“When I talk to recruits and their families about why (facilities) are important, it’s because it shows commitment. It shows investment. It shows the priority for football at IU. And this is an extension of that,” Allen said. “When you talk to recruits and their families, they want to know ‘Are you going to be coaching my son when he’s a sophomore, a junior, a senior?’ Because that’s a big deal.
“Things like this send a strong message in that direction, the commitment of the university, and the commitment of myself and my family to being here. So that means a lot to me, and that obviously puts a lot of power behind your words, that it’s not just something I’m saying.”
IU’s administration has certainly continued to invest in football, which drives the budgets of most athletic departments. They are doing that despite the COVID-19 pandemic, which has constrained revenues over the last year.
Allen’s last contract made him the highest-paid coach on campus, ahead of IU men’s basketball coach Archie Miller and his annual compensation of around $3.4 million. This latest deal again resets the bar for the richest contract IU has ever given a coach.
IU has also doled out richest-ever contracts to key assistants, including a new defensive coordinator, Charlton Warren, who was paid $700,000 in compensation for 2021 to come over from Georgia. Deland McCullough, IU’s running backs coach, was hired away from the Kansas City Chiefs last month and offered a contract worth $515,000 per year.
For comparison, IU’s last running backs coach, Mike Hart, made $375,000 during the 2020 season.
“Tom Allen has proven himself to be not only the right person for our student-athletes and our program, but one of the best football coaches in the country,” IU athletic director Scott Dolson said in a statement. “The enthusiasm and outlook for our program is at an all-time high, and the future of Indiana Football is in great hands. I look forward to Tom leading our program for many years to come.
“I thank President (Michael) McRobbie and the Board of Trustees for their support throughout this process, and I thank Tom for his commitment to building something very special in Bloomington. I could not be more excited about the future of Indiana Football.”
Allen’s contract will continue to have the “evergreen” provision that was built into the last, extending his contract automatically by one year every time the Hoosiers make a bowl game.
In the last deal, Allen’s base salary throughout the lifetime of the deal was $500,000, plus another $500,000 in deferred compensation. That remains the same. But like in the last deal, the biggest pay increases came via outside, marketing, and promotional income.
Before, the first year of outside income was worth $2.25 million. Allen will now receive $3.3 million in outside, marketing, and promotional income in 2021. That number increases by $200,000 each year, up to $4.5 million in the final year.
The new terms are written as an amendment to the previous contract, which should mean the rest of the deal from Dec. 2019 remains intact, including the bonus structure. For instance, Allen earned $100,000 for a bowl appearance in 2020, as well as another $100,000 for winning a national coach of the year award.
While it’s not specified by the amendment, Allen said Monday his pool to hire assistant coaches was again increased as part of this contract negotiation.
“I’m so appreciative and very, very thankful for Scott Dolson. Appreciate his commitment to our football program,” Allen said. “President McRobbie has been huge in all of this, the board of trustees. So just really appreciate all of them, the leadership of Indiana. I’ve said all along, it’s about wanting to be at a place that values our football program, that’s going to invest in our football program, and allow us to be able to have the infrastructure and the support to do great things here.
“That’s what I want to do, and I appreciate their support in that area, and all they’ve chosen to invest in football.”