Reinvested funds have Tennessee ready for key hiring

Paul Myerberg, USA TODAY Sports | USATODAY

How does Tennessee's decision Tuesday to reallocate university funds impact the school's search for its next football coach?

It's simple, really. Tennessee chancellor Jimmy Cheek announced that the school would reinvest $18 million in the athletic department over the next three years, giving the department a much-needed boost in funds as the school transitions to a new coaching staff.

Before the reinvestment, the $18 million was earmarked for the academic scholarships, fellowships and programs.

Cheek emphasized that Tennessee "will not reduce" its financial commitment to academics, and will look to replace the reallocated funds through "private gifts."

"As we face a transition in our football program, I want to make it clear that we support a mission of comprehensive excellence in our athletics department," Cheek said.

"Under the leadership of Vice Chancellor and Athletics Director Dave Hart, we will do the things required to return our team to national prominence. As we begin our search for a new coach, I have assured Dave that he will have the support and resources he needs to be successful."

With that cash in hand – or to be in hand over the next three years – Tennessee can begin the process of paying buyout packages to former coach Derek Dooley and his staff and look towards hiring his eventual replacement.

According to columnist David Climer of The (Nashville) Tennessean, Dooley will leave UT with a $5 million buyout. Starting in January, he'll begin collecting monthly installments of $104,166.66 through 2016.

Offensive coordinator Jim Chaney, the team's interim coach, will be owed about $645,000. Another eight assistants, including one who was fired after the 2011 season, will be owed roughly $4.1 million, according to Climer.

Add up Dooley's buyout with the buyout due to his assistants and you get more than $9 million, which is quite a pretty penny for any athletic department – especially one that prior to today's reinvestment had only $1.9 million in its reserve fund, which is far below its SEC competition.

Even after paying the sizable buyouts, Tennessee's reinvestment will leave the university with enough money to be a player in this offseason's hiring cycle. Will there be enough left over to entice Jon Gruden to leave his analyst job at ESPN and reenter the coaching ranks?

"I know that winning championships and competing at the highest level lifts the national profile of the University of Tennessee," Cheek said. "As chancellor, I am committed to winning both on the field and in the classroom."