Michigan State and new athletic director Dan Bartholomae have made a substantial five-year commitment to one another, with matching financial protections designed to provide stability for both sides. If Bartholomae hits all his targets, his contract could be worth up to $8.7 million dollars over the life of the agreement.

If Michigan State terminates Bartholomae without cause before his contract expires, the university would pay him 80% of his remaining base salary. If Bartholomae chooses to leave early, he would owe MSU liquidated damages equal to 80% of the base salary remaining on the agreement.

Those reciprocal provisions are included in an Aug. 14 term sheet obtained by Spartans Illustrated and signed by Bartholomae and MSU President Kevin Guskiewicz.

The parties must still execute a formal employment agreement, which is subject to approval by the Michigan State Board of Trustees and satisfactory completion of all required background and misconduct checks.

Sources have indicated to Spartans Illustrated that the board is expected to approve the agreement at its next regularly scheduled meeting Sept. 11. Sources have also informed Spartans Illustrated that two trustees – Kelly Tebay and Dennis Denno – served on the committee that helped conduct the athletic director search, providing the board with direct representation during the process that resulted in Bartholomae’s selection.

The structure provides Bartholomae with considerable security as he takes control of the athletic department while also protecting Michigan State’s investment if another university attempts to hire him before the agreement concludes June 30, 2031.

If MSU terminates Bartholomae without cause, the amount owed would be paid in monthly installments through the contract’s original expiration. If Bartholomae leaves voluntarily, he must pay – or arrange for another party, such as his next employer, to pay – the same percentage of his remaining salary to Michigan State.

The obligation would decline throughout the five-year term, but it could reach several million dollars if the relationship ended during its opening years.

If Michigan State terminates Bartholomae for cause, the university would have no financial or other liability to him.

Five years and $7.25 million in base salary

As previously reported by Spartans Illustrated, Bartholomae’s agreement includes $7.25 million in base salary, beginning at $1.3 million and increasing by $75,000 annually.

His first contract year runs from Aug. 31 through June 30, 2027. His base salary will increase to $1.375 million in the second year, $1.45 million in the third, $1.525 million in the fourth, and $1.6 million during the final year.

Bartholomae will also be eligible for an annual performance bonus worth as much as 20% of his base salary. The bonus will be based on mutually agreeable goals established with Guskiewicz.

If Bartholomae earns the maximum bonus each year, his total potential compensation would reach $8.7 million over the life of the agreement.

Michigan State assumes Western Michigan obligation

The term sheet also states that Michigan State will pay any buyout or liquidated damages Bartholomae owes as a result of terminating his employment agreement with Western Michigan.

That obligation was approximately $5.1 million.

Michigan State is expected to cover the cost through a combination of liquidated damages associated with J. Batt’s departure for Kentucky and philanthropic support, reducing the amount that must be absorbed through the athletic department’s existing resources.

The arrangement allows MSU to apply money generated by its previous athletic director’s departure, along with donor assistance, toward the cost of hiring his successor from Western Michigan.

Bartholomae inherits an athletic department confronting the financial transformation of college athletics, a $500 million modernization of Spartan Stadium, and the continued development of MSU’s outside-revenue operation through Spartan Ventures.

The term sheet reflects the size of that responsibility and Michigan State’s desire for stability following Batt’s departure.

Michigan State has given Bartholomae the security to lead the department with a long-term horizon. In return, the university has protected its investment by establishing an equivalent financial commitment if Bartholomae decides to leave early.