Deion Sanders contract buyout, explained: How much money would it cost Colorado to fire coach?

Ever since his son Shedeur Sanders left for the NFL, the Deion Sanders era at Colorado has seen a steep and turbulent decline.

With Shedeur and two-way star Travis Hunter now gone, the team’s record has dropped sharply to 3-6 overall and 1-5 in the Big 12, suggesting the system’s foundation may not yet be strong enough to withstand the loss of transcendent talent.

This sudden lack of success places intense pressure on the most controversial element of Sanders’ tenure: his massive $54 million contract extension. Signed after the 2024 season, which saw Colorado reach a bowl game, the deal made Coach Prime one of the highest-paid coaches in college football and cemented the university’s commitment to building the program around his celebrity. However, with the team now struggling and bowl eligibility seemingly out of reach, questions are mounting in Boulder about the financial liability the university would face if the experiment fails.

Here’s what to know about Sanders’ buyout if Colorado decides to go in a different direction.

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Deion Sanders contract details

After the 2024 season, which saw Colorado reach the Alamo Bowl, Sanders signed an extension to keep him in Boulder long-term.

The deal runs for five years, through the 2029 season, and is worth a total of $54 million, averaging $10.8 million annually. This salary placed Sanders among the highest-paid coaches in college football and made him the top earner in the Big 12 Conference. His base pay escalates yearly, beginning at $10 million in the first two seasons and climbing to $12 million by the final year of the contract.

Beyond the guaranteed salary and buyouts, the contract includes numerous performance-based incentives. These bonuses reward success at every level, from $150,000 for reaching bowl eligibility (winning six games) and $100,000 for each win beyond that, to a substantial $400,000 bonus for winning the Big 12 Conference or making an appearance in the first round of the College Football Playoff. The contract also provides significant perks, including funds for private jet travel for recruiting and a country club membership.

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Deion Sanders buyout details

Should the University of Colorado decide to part ways with Coach Prime before the end of 2025 without cause, the cost of that decision would be enormous: a $33.6 million buyout owed to Sanders, according to CBS Sports.

With results plummeting, the massive buyout — one of the largest in the Big 12 — acts as a financial handcuff, making the future of the Colorado football program less about wins and losses on the field and more about the multi-million dollar calculation in the athletic director’s office. 

Even so, the willingness of major programs to absorb monumental coaching buyouts suggests that Sanders’ contract may not be the obstacle it appears to be. The 2025 season has already seen schools shatter previous financial precedents by cutting ties with high-profile coaches despite massive buyouts. This includes LSU firing Brian Kelly, whose buyout reportedly stood at over $53 million — the second-highest in college football history — and Penn State firing James Franklin, whose contract commanded a buyout of approximately $49 million. Furthermore, Florida dismissed Billy Napier in the middle of the season, incurring a cost of over $20 million.

These recent, aggressive moves by powerhouse programs illustrate that financial penalties, no matter how steep, are increasingly viewed as a necessary cost of doing business when on-field results fail to meet institutional expectations.

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Deion Sanders coaching record

In total, Sanders holds a career record of 43-23.