When Oklahoma State and Sean Sutton agreed to a contract buyout of $2.7 million on April 5, Sutton would have received a one-time payment of $300,000 and $2.4 million to be paid over 10 years. This week, Sutton and OSU decided to go with two lump-sum payments.
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The restructured agreement will pay Sutton a total package of $2,197,460:
•$328,500 paid to Sutton by May 1
•$1,032,500.53 paid before the end of the year
•$836,459.47 that will be withheld to pay federal and state taxes
The agreement, which was approved Friday by the OSU Board of Regents, will provide Sutton with essentially the same economic value because of the one-time payments instead of spreading it out over 10 years. The agreement was restructured after the impact of withholding tax obligations for Sutton, a provision in the original agreement, was determined.
"The revision provides virtually the same overall economic benefit to Coach Sutton as the original agreement which recognized his contribution to the program over 17 years,” OSU spokesman Gary Shutt said. "We appreciate the constructive way in which everyone involved addressed this matter.”
Shutt also said the agreement still does not involve any state-appropriated money and will be paid from athletic department funds.
From Staff Reports
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