Penny Hardaway buyout, contract details as Memphis Tigers coach
Penny Hardaway buyout, contract details as Memphis Tigers coach originally appeared on The Sporting News.
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Penny Hardaway secured his long-term future at Memphis with a six-year contract extension in 2022 that includes a detailed buyout structure, layered incentives and several unconventional clauses reflecting his national profile.
The University of Memphis and Hardaway agreed to a deal totaling $16.5 million over six seasons, running through April 15, 2028. The agreement updates and replaces the memorandum of understanding Hardaway signed in December 2020 and effectively serves as a two-year extension. It was the first long-form contract of his tenure, according to The Commercial Appeal through an open-records request.
Penny Hardaway's contract and buyout terms
Hardaway has gone 171-77 since taking over the program in 2018-19, posting four consecutive 20-win seasons, winning the 2021 National Invitation Tournament and leading the Tigers to their first NCAA Tournament appearance since 2014 in 2022. But the Tigers have fallen off this season at 9-10 with the second half still ahead of them.
Under the contract, Hardaway’s base salary is $200,000, with the bulk of his compensation coming through supplemental pay.
The former NBA star earns $1.15 million annually for radio and television appearances and another $1.15 million for public relations, public service and speaking engagements. His total annual compensation can rise to $3 million if certain benchmarks are met, including an Elite Eight appearance or Memphis joining a Power Four conference.
The buyout provisions are among the most notable aspects of the deal. If Hardaway leaves for another college job, he would owe $1.5 million this year and next, and $1 million in the final year. However, there is no buyout if he accepts a head coaching position in the NBA. Hardaway interviewed with the Orlando Magic before Jamahl Mosley was hired and has remained open about his professional aspirations.
Penny Hardaway's buyout terms and incentive
Memphis would owe Hardaway the remaining value of his contract if he were fired without cause, offset by any future comparable employment. As of February 2026, this would be $7.2 million. Termination for major NCAA violations would void remaining compensation.
The contract also includes a wide range of performance bonuses, from $50,000 for a conference title or NCAA appearance to $250,000 for a national championship, along with academic and attendance-based incentives.
At the time, Hardaway said the extension provides clarity on the recruiting trail, assuring players and families that he plans to remain in Memphis for the long haul. For now, he'll try and lead the Tigers to consecutive NCAA Tournament appearances.
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