The settlement, finalized Saturday, includes a $300,000 payment this month and payments of $20,000 per month for the next 10 years starting July 1. Sutton's contract, a five-year deal that he was in the second year of completing, included a clause that would have stopped payment once he landed another position. The school and Sutton agreed to delete that clause, so Sutton will be paid regardless of when he gets his next job.
"We wanted to recognize the 17 years of service Sean Sutton rendered to the OSU program as a player, assistant coach and head coach,” OSU Director of Communications Gary Shutt said in a statement. "We thought Sean's contract negotiated when OSU named him head coach designate was too constraining on him and his family. We wanted to be as fair as possible.”
The school said the $2.7 million does not include any state-appropriated money and will be paid from athletic department funds.
The settlement prohibits the university and Sutton — and Sutton's immediate family — from making "adverse comments or disparaging remarks” about each other.
"In this regard, it is the intent of the parties to present to the news media and general public a unified decision with intent to the employment relationship of Sean P. Sutton with Oklahoma State University and that both parties to this agreement will act professionally toward each other when speaking to the news media now and in the future.”
Sean Sutton's father, Eddie, is not considered an immediate family member. Monday, Eddie told the Austin American Statesman newspaper that he is considering having his name removed from the court in Gallagher-Iba Arena.
"(Sean) certainly was instrumental in the success we had, as a player and to assist me all those years,” Eddie Sutton told the paper. "That was the only thing that disappointed me. He won 39 games in two years.”
Sutton declined to tell the Statesman whether he believed his son received a raw deal, but he said Sean's doing fine.
"He's a tough kid and he's a very, very good basketball coach,” Sutton said. "He'll get back in the game.”
The settlement between OSU and Sean Sutton is contingent on approval by the Board of Regents, which next meets April 18.