A long-agreed contract extension between Texas and football coach Steve Sarkisian became formalized Thursday, when the UT System Board of Regents gave its approval.
The new deal raised Sarkisian’s salary by 3.85%. Under its terms, Sarkisian will earn $10.8 million in guaranteed compensation in 2025. His pay will escalate annually by $250,000, setting him up to earn $12.3 million in 2031, the final year of the deal. Texas last month completed a 13-3 season that included another appearance in the College Football Playoff, falling one win short of the national title game.
Where does Sarkisian’s contract extension place him among his peers? And what does it mean for the Longhorns going forward?
Here are three things to know:
Steve Sarkisian’s old contract gave Texas football value for money. Will his next one do the same?
In 2024, Sarkisian earned $10.6 million in base pay, with $10.3 million of that coming from his salary and another $300,000 derived from a retention bonus Sarkisian received in April.
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An eye-popping total, no doubt. But you can make the case that it gave the Longhorns good value for their money.
Just two other coaches in the 16-team SEC earned less money per win (excluding bonuses) than Sarkisian. Texas paid Sarkisian roughly $815,000 for each of his 13 wins. South Carolina’s Shane Beamer and Vanderbilt’s Clark Lea were Sarkisian’s only SEC peers who offered better value.
At the other end of the spectrum, Kentucky paid Mark Stoops $2.25 million per victory, while Mississippi State coach Jeff Lebby earned $2.13 million for each of his wins. Texas’ rival, Oklahoma, paid Will Venables $1.40 million for each of his six wins.
Apply Sarkisian’s raise — which brings his guaranteed compensation to $10.8 million next year — to last season’s win total, and the Longhorns would have paid out just over $830,000 per victory.
Where Steve Sarkisian’s new salary would have ranked last season
Sarkisian’s new deal doesn’t raise his standing among the highest-paid coaches in the game.
Sarkisian ranked third in the country last season in base pay, according to USA TODAY’s national database, with Georgia’s Kirby Smart and Clemson’s Dabo Swinney coming in above him.
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The Texas coach’s new deal doesn’t lift him above what Swinney or Smart earned in 2024. And Ohio State coach Ryan Day signed a new deal after the Buckeyes won the national championship last season that is set to pay him $12.5 million in 2025, which puts his deal above Sarkisian’s on the list of the sport’s most lucrative.
Steve Sarkisian’s new Texas football contract doesn’t change his bonus structure
According to the Agenda Book posted by the UT System Board of Regents, Sarkisian’s new contract does not alter his “nonguaranteed compensation.”
Sarkisian’s performance bonuses are included under that umbrella.
Last season, Sarkisian earned $750,000 in bonus money for the Longhorns’ inclusion and two victories in the College Football Playoff. Texas also paid him an additional $150,000 for taking the Longhorns to the SEC title game.
Reach Texas Insider David Eckert via email at deckert@gannett.com. Follow the American-Statesman on Facebook and X for more. Your subscription makes work like this possible. Get access to all of our best content with this tremendous offer.
This article originally appeared on Austin American-Statesman: Texas football: 3 things to know about Steve Sarkisian’s contract
