What's the deal? Details of UNM Lobo coach Eric Olen's new contract

Eric Olen accepted UNM’s offer to be the 23rd Lobo men’s basketball coach on Saturday night.

The former UC San Diego coach accepted a five-year offer of $6.5 million — starting a $1.2 million this season to coach the Lobos. Olen replaces Richard Pitino, who left UNM for Xavier after four years.

Here are the details of the memorandum of understanding, signed Saturday by Olen and by UNM President Garnett Stokes and Vice President for Athletics Fernando Lovo on Sunday:

The pay

The term is for five years with a contract year defined as being April 1 through March 31.

His final season of 2030 expires on March 31, 2030, or the team’s final game played, whichever is later.

• Contract year 1 (2025-26): $1.2 million
• Contract year 2 (2026-27): $1.25 million
• Contract year 3 (2027-28): $1.3 million
• Contract year 4 (2028-29): $1.35 million
• Contract year 5 (2029-30): $1.4 million

Technically, the pay is broken down as such: $400,000 in base salary, $400,000 in media rights compensation (Olen is obligated to do a weekly coaches show and pregame and postgame interviews with the team’s radio partner), and $400,000 in program promotion. The annual bump of $50,000 will not change the base salary.

WHERE DOES IT RANK? At $1.2 million in his first season, Olen will be the fourth-highest paid coach in the Mountain West, behind San Diego State’s Brian Dutcher ($2.5 million), Utah State’s Jerrod Calhoun ($1.85 million) and Nevada’s Steve Alford ($1.35 million).

COMPARISONS: Former Lobos coach Richard Pitino made $1.2 million this past season, but was offered $2 million to stay.

Olen’s base salary this past season at UC San Diego was $345,000 and he reportedly earned $485,000 once all his incentive bonuses kicked in.

Bonuses/incentives

• $25,000 — Mountain West Coach of the Year
• $50,000 — Naismith National Coach of the Year
• $25,000 — Mountain West Championship (regular season)
• $25,000 — Mountain West Tournament championship
• $25,000 — NCAA Tournament at-large berth
• $25,000 — NCAA Tournament “First Four” win
• $50,000 — For each NCAA Tournament win Round 1 through Final Four
• $150,000 — NCAA National Championship
• $25,000 — AP Top 25 (final poll)
• $25,000 — 20-win season and a KenPom rating in the top 50
• $50,000 — 20-win season and a KenPom rating in the top 25

Other compensation

• Moving allowance of $30,000
• 45 days of temporary housing
• Courtesy car
• Country Club membership for family to “one or more local country clubs”
• Family (wife and children) allowed on team travel
• Tickets to home games for all UNM sports

Buyout if fired

If fired for cause, none of this applies.

• In contract year 1 or 2 (by March 31, 2027): UNM owes Olen 100% of remaining salary
• In contract year 3 or 4 (by March 31, 2029): UNM owes Olen 75% of remaining salary
• In contract year 5 (by March 31, 2030): UNM owes Olen remaining salary

If fired and Olen finds another coaching job, UNM’s buyout is mitigated dollar for dollar (if Olen’s new pay is less than what UNM owes, UNM pays difference).

All buyout pay is paid out over 36 months.

Buyout if Olen leaves

• In contract year 1 (by March 31, 2026): Olen owes UNM $2.65 million
• In contract year 2 (by March 31, 2027): Olen owes UNM $2,025,000
• In contract year 3 (by March 31, 2028): Olen owes UNM $1.1 million
• In contract year 4 (by March 31, 2029): Olen owes UNM $560,000
• In contract year 5 (by March 31, 2030): Olen owes UNM $0

All buyout pay is paid out over 36 months.

WAIT, THERE’S MORE: In a new clause to UNM coaching contracts of the past, if Olen leaves for another coaching position, the new school will have to schedule a home-and-home series with UNM — one game played in the Pit, one at his new school. Or, the new school can pay UNM $250,000 to avoid the home-and-home.

One more thing

• UNM owes UC San Diego $150,000 to cover the cost of Olen’s buyout there