BLOOMINGTON, Ind. – Indiana football is off to a historic start in coach Curt Cignetti’s first season.
The Hoosiers are 7-0 for the first time since 1967 and second time in program history, which has triggered several bonuses in Cignetti’s six-year contract at Indiana. With five regular season games remaining, plus a bowl game or College Football Playoff appearance, there’s potential for even more.
Here are the details of Cignetti’s contract, the bonuses he’s earned so far, the other bonuses he could earn moving forward, plus his buyout information, according to the memorandum of understanding signed by Cignetti on Nov. 30, 2023, and obtained by Hoosiers on SI through public records requests.
Cignetti agreed to a six-year contract starting on Dec. 1, 2023 and running through Nov. 30, 2029, with an annual base salary of $500,000. In Year 1, he will earn $3.5 million in annual outside, marketing and promotional income. That figure will increase by $100,000 each year and become $4 million in Year 6.
The contract includes an annual retention bonus of $250,000, with the first payment on Nov. 30, 2024. The same payment will be made on Nov. 30 each year of Cignetti’s employment at Indiana.
BONUS 1, BOWL APPEARANCE: The first bonus Cignetti earned as Indiana’s coach came after the Hoosiers’ 41-24 win at Northwestern. That marked Indiana’s sixth win of the season, which made the Hoosiers bowl eligible.
Cignetti’s contract states that each bowl appearance triggers a one-year extension; a $250,000 increase to the remaining outside, marketing and promotional income payments; and a $500,000 increase to the budget for football staff personnel. The extension year shall be no less favorable to Cignetti than the terms of the year that precedes the extension year.
There is also potential for an annual bonus of $200,000 if Indiana makes a bowl appearance that is not part of the College Football Playoff. If it wins that bowl game, Cignetti would receive an additional $50,000 bonus.
BONUS 2, BIG TEN WINS: Cignetti could receive another bonus if Indiana defeats Washington on Saturday and improves to 8-0. His contract includes a $100,000 bonus for the fifth Big Ten win, or a $150,000 bonus for the sixth conference win. These bonuses are not cumulative, and the highest win total will apply.
BONUS 3, TOP BIG TEN FINISHES: Indiana currently sits atop the Big Ten standings with a 4-0 conference record, which puts Cignetti in play for another bonus. Cignetti would receive a $250,000 bonus for a top-six finish in the Big Ten, or a $500,000 bonus for a second-place finish, or a $1,000,000 bonus for a Big Ten championship. These bonuses are not cumulative, and the highest conference finish will apply.
BONUS 4, PLAYOFF APPEARANCES: Indiana’s 7-0 start led to a No. 13 ranking in the latest AP Top 25 Poll and puts the Hoosiers in the conversation for the College Football Playoff. ESPN gives Indiana a 63% chance to make the 12-team College Football Playoff. Cignetti’s contract includes several CFP-related bonuses.
A first-round appearance in the College Football Playoff results in a $500,000 bonus. Reaching the CFP quarterfinals leads to a $600,000 bonus. Cignetti would receive a $700,000 bonus if Indiana appears in the CFP semifinals. That bonus increases to $1 million if Indiana is the national runner-up and to $2 million if Indiana wins the national championship. These bonuses are not cumulative, and the highest finish will apply.
BONUS 5, COACHING AWARDS: Cignetti has already garnered consideration for national coach of the year awards. During Indiana’s bye week, Cignetti was one of 27 coaches named to the Paul “Bear” Bryant National Coach of the Year Award watch list.
His contract includes an annual bonus of $100,000 if he wins one of the following national coach of the year honors: Associated Press, Paul “Bear” Bryant, Sporting News, Walter Camp, Maxwell Football Club or ABC/ESPN. There is a maximum of $100,000 for this category in a single season.
If Cignetti wins the Big Ten Coach of the Year Award, given by the coaches or the media voting panel, he would receive a $50,000 annual bonus. There is a maximum of $50,000 for this category in a single season.
If Cignetti chooses to resign or if his employment is terminated for cause, Indiana University is not liable for compensation or benefits thereafter.
If the university terminates Cignetti’s employment without cause, it would pay him a buyout as follows:
If Cignetti resigns prior to the end of his contract — say, for instance, if he is hired by another school –– he would pay the university the following as liquidated damages:
Cignetti’s contract states that Indiana will take reasonable steps to satisfy his existing financial obligation (buyout) to James Madison in a manner that is tax neutral to him. If Cignetti leaves Indiana, it is likely that the new school that hires him would do the same.
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