Rex Ryan had three years remaining on his five-year contract with the Buffalo Bills when he was fired, but with the team’s former head coach accepting an analyst position at ESPN, Kim and Terry Pegula won’t have to pay him $5.5 million per year. Here’s what Mike Florio of Pro Football Talk wrote about the offset language in the deal.
“Ryan’s contract with the Bills has offset language that applies not only to other coaching jobs but also to broadcasting jobs. Thus, with $5.5 million due to Ryan for each of the next three years, the biggest winners in light of Ryan’s employment at ESPN are owners Terry and Kim Pegula, who will be getting credit for every dollar Ryan earns at ESPN, up to $5.5 million per year.”
An offset means that if Rex is making $1 million a year at ESPN, that’s $1 million the Bills don’t have to pay him. Buffalo will still have to cover the difference between whatever Ryan’s salary is at ESPN and the $5.5 million-per-year figure.
This is essentially a buyout by ESPN, which will end in 2019, when his five-year contract with Buffalo technically expires. The Pegulas clearly smartened up at the coaching-contract negotiation table after what happened following Doug Marrone’s departure.