ESPN.com news services has reported that Penn State University automatically extended the contract of football coach Bill O’Brien, per the terms of an addendum to his contract:
O’Brien will receive 2016 compensation in 2017-20 per the terms of an addendum to the agreement, which he and acting athletic director Dave Joyner both signed.
“Any sanction by the NCAA of a) loss of scholarships or b) bowl eligibility due to the actions of the previous staff or lack of institutional control prior to 2012 will immediately result in an automatic extension of coach’s contract at 2016 total compensation and bonus package in years equal to the number of years of the sanctions,” the addendum said.
ESPN’s Joe Schad obtained the addendum. The story does not mention when the addendum was entered into.
This addendum addresses a glaring hole in the contract between Penn State and O’Brien - a clause protecting the coach in the event of NCAA sanctions. Now O’Brien’s contract allows him to coach Penn State through its NCAA penalty and then have an additional period to recruit and coach players without being limited by a reduction in scholarships and ban on postseason play.