LSU Seeks Legal Route to Avoid Paying Brian Kelly’s $54M Buyout

Louisiana State University (LSU) finds itself entangled in legal proceedings following the dismissal of former football coach Brian Kelly. The Louisiana governor, Jeff Landry, previously indicated that the university faced a potential liability of $53 million related to Kelly’s buyout. However, LSU is now asserting that it bears no responsibility for this payment, claiming, in a 48-page lawsuit filed in the 19th Judicial District for East Baton Rouge Parish, that Brian Kelly was never formally terminated.

LSU’s Legal Challenge

According to the lawsuit, LSU alleges that its Athletics Director, Scott Woodward, lacked the authority to fire Kelly or to negotiate any settlement with him. This claim directly contradicts assertions made by Kelly’s representatives during a meeting that included multiple high-ranking LSU officials.

Dispute Over Termination

Kelly’s camp contends that the proper procedures were not adhered to in the dismissal process. They argue that:

• Kelly was indeed terminated by LSU officials, including the current Athletics Director Verge Ausberry.
• Woodward acted with authority during the termination meeting.
• There were insufficient grounds for a termination “for cause” as stated in Kelly’s contract.

In fact, LSU has never claimed that Kelly’s dismissal was for cause. Before November 10, 2025, the university had consistently communicated that Kelly’s termination was linked to the team’s performance rather than misconduct.

Settlement Negotiations

Prior to the lawsuit, LSU sought to negotiate a reduced buyout figure. Initially, the university proposed settlements of $25 million and later $30 million. Acceptance of either offer would have relieved Kelly of the obligation to find other employment to mitigate his buyout. However, he rejected both proposals.

According to his contract, the full $53 million buyout will be paid to Kelly in monthly installments until 2031. Kelly’s representatives believe that accepting a lump sum now could allow him to invest the amount and potentially exceed the total buyout by the end of the payment period.

Legal Perspectives

The legal maneuvering by LSU has drawn criticism. Attorney Tom Mars commented on social media that no school has successfully won a case related to termination for cause. Many in the sports community are skeptical about LSU’s chances of prevailing in this dispute.

As the situation unfolds, LSU’s approach raises questions about the implications of this legal strategy and its impact on the broader college sports landscape.