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Deion Sanders Sidesteps Side Pay Norms via ‘Verbal Accounting’

daniel libit
·3 min read
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Colorado football coach Deion Sanders is not known to be shy when it comes to showing off his wealth, whether that be by layering his neck with diamond-encrusted jewelry or unveiling his custom vehicle on social media.

But when Sanders signed a $29.5 million, five-year contract at CU in December, he quietly negotiated very specific language designed to keep some of his earnings under wraps—or, at least, kept as mum as possible.

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The unique terms in Sanders’ employment agreement address how he reports to the university the money and benefits he receives for promotional and endorsement activities that are separate from his employment agreement.

The NCAA requires that its member institutions obtain annual disclosures from coaches and other athletic department officials for any “athletically related income or benefits” they receive in excess of $600. The association adopted this provision in 2018 in response to the Department of Justice’s investigation into college basketball bribery.

According to Sanders’ agreement, before Sept. 1 each year he must provide only a “verbal accounting” of this information to Colorado’s athletic director and president. That means there won’t be any written record of how much Sanders earns on the side, and from whom. Though the NCAA’s bylaws do not specify how athletic department employees make their disclosures, many schools have either assumed or established that the information be conveyed in writing.

For example, LSU football coach Brian Kelly’s contract states: “Employee shall report annually to the president and the athletic director, in writing … all athletically-related income or benefits received by Employee from sources outside LSU, and LSU shall have reasonable access to all records of Employee to verify this report.”

Nebraska coach Matt Rhule’s employment agreement, which was signed in November, says he “shall file a personal financial statement annually with the athletic director, on a date and in a format determined by the athletic director or a designee.”

Kentucky basketball coach John Calipari’s contract says that while he must provide at least one written outside income accounting each year, he may have to do so “more frequently upon request.”

A CU official confirmed that Sanders’ paperless disclosure terms were unique among its athletic staffers, as well, and had been specifically requested by the coach as part of his contract negotiations.

“Coach Prime’s outside income reporting will be in full compliance with NCAA regulations, per the terms of his contract,” the university’s athletic department said in a statement.

Neither Sanders nor his representatives responded to requests for comment.

As is more customary, Sanders’ contract does require that he first obtain “prior written permission” from Colorado’s athletic director before agreeing to appear in any commercial or endorsement whereby he identifies himself as the Buffalos’ head football coach.

In 2021, Sportico reported on outside income earnings of a number of prominent college coaches after obtaining their disclosure forms through public records requests.

Jackson State, Sanders’ previous employer, also did not keep a written record of his athletically related outside income. When Sportico sought outside income disclosures for Sanders earlier this year, the school’s office of general counsel stated that no such records existed. It subsequently tried to claim that even if records did exist, they would be part of his personnel file, and exempt from public disclosure.

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