Colorado faces a bill of roughly $26 million if it opts to fire coach Deion Sanders this season, a financial burden that adds to the pressures on the struggling football program. Sanders, who earns $10 million this year and is the highest-paid coach in the Big 12, is tied for last place in the conference with a 1-5 league record and sits 15th out of 16 teams.
According to Sanders’ contract obtained by USA TODAY Sports, if Colorado ends his tenure after the season, it would owe him 75% of the remaining contract through December 2029, amounting to about $26 million. This buyout would be paid in equal monthly installments rather than a lump sum. The contract spells out annual salaries of $11 million for 2027 and 2028, and $12 million in 2029. Currently, Sanders is on pace for $10 million in 2026, paid at $833,333 per month.
If Sanders retires and does not return to coaching, neither party owes anything. However, if he retires and later takes another college or pro coaching job before his Colorado contract expires, he must repay the university at least $3 million.
Colorado’s athletic department has been running a budget deficit, projecting a $27 million shortfall in fiscal 2026, which ended in June. That year marked the first full term of Sanders’ $10 million salary and the university’s initial season of paying players through a revenue-sharing model exceeding $20 million. The department already relies heavily on university support, including $11.9 million in institutional aid and $2.2 million from student fees, making a $26 million buyout seem unaffordable under current conditions.
Still, the university structured Sanders’ contract to guarantee only 75% of the remaining money if he is fired for poor performance. This is less generous than many coaching contracts, which often guarantee 100% of the remaining salary, sometimes leading to massive payouts. For comparison, Colorado owed former coach Karl Dorrell the full balance of his contract, about $8.7 million, when he was dismissed in October 2022. Jimbo Fisher, fired by Texas A&M in 2023, was owed $77 million on a fully guaranteed deal.
By paying Sanders 75% of his remaining contract, Colorado would reduce annual payments to about $8.5 million through 2029 instead of $11 million. The university could then redirect the remainder toward a replacement coach’s salary, which would likely be significantly lower. For instance, Utah’s coach Morgan Scalley earns roughly $5.4 million per year on a five-year, $27 million contract. The Utes are 9-0 and ranked second in the College Football Playoff standings.
Colorado’s situation with Sanders is precarious on the sporting front as well. The Buffaloes need to win all three remaining regular-season games, starting with Houston on 13 November, to qualify for a postseason bowl. Their 19-27 record over four seasons and 3-9 campaign in 2025 have raised questions about Sanders’ future.
Firing Sanders would not only trigger the buyout but could also mean additional costs for severance packages to assistant coaches and commitments to a new staff and players. Roger Pielke Jr., an emeritus professor at Colorado, estimates the total cost to fire Sanders and hire a cheaper staff could be roughly $21 million more than keeping him through fiscal 2030, factoring in payroll savings and lost revenue.
“Somewhat ironically firing Sanders and hiring a cheaper coach and staff means a greater financial commitment to football,” Pielke said.
Sanders himself acknowledged the team’s struggles on 10 November. “I’m not getting it done,” he said.
The decision now rests on the outcomes of the final games and whether the university can reconcile the financial realities with the need for improved performance.
According to Yahoo Sports.
