Former Louisville men's basketball head coach Kenny Payne will be on the books for a while — but for a shorter time, and for less money, than his contract originally entailed.

The U of L Athletic Association (ULAA) agreed to pay the 57-year-old Mississippi native a total severance amount of $7,250,000, according to a copy of the separation agreement obtained by The Courier Journal via an open records request.

The payments of $201,388.88 began "on or about" Monday, April 1, when Payne's employment was effectively terminated without cause, the agreement says. They'll end "on or about" March 31, 2027.

Between his buyout and his $3,350,000 base salary, he earned approximately $13,950,000 across two seasons at his alma mater; which went down as the worst in modern program history.

When Payne was hired away from an assistant role with the New York Knicks as Chris Mack's successor, and the Cardinals' first Black head coach, on March 18, 2022, his five-year contract through March 31, 2028, outlined a severance benefit plan starting at $10 million.

The buyout was set to decrease from $8 million to $6 million on Monday.

In addition to the severance payments, ULAA will cover the monthly cost of health insurance for Payne and any eligible dependents until June 30, 2025, or until he becomes employed in a position that offers coverage. But the agreement says he has "no obligation" to seek other jobs in order to receive his buyout money.

Payne will also retain ownership of a life insurance policy that was valued at $15 million at the time of his hiring. Any policy maintenance or renewal shall be done at his discretion and out of his wallet, the agreement says.

The parties agreed upon a clause stating Payne will not "make any disparaging statements or remarks about ULAA or the university."

He can respond truthfully to inquiries from regulatory, compliance and governmental entities, or court orders; and he must cooperate "as reasonably requested by ULAA" with investigations — NCAA, etc. — surrounding events that occurred during his tenure.

Louisville's athletics director, Josh Heird, informed Payne he would not return for a Year 3 on March 13, the day after the Cardinals' season ended in the first round of the ACC Tournament. Per the separation agreement, his employment officially ended two days later.

Payne left his first head-coaching gig with an overall record of 12-52. U of L suffered its first back-to-back 20-loss seasons in program history, and lost more games by 20 or more points than it won, under his direction.

Still, he remained steadfast in his belief that what he inherited called for a three- to four-year rebuild.

"Whether I'm the coach or not," Payne said after what proved to be his final game, "I can look in the mirror and say, 'I gave it everything I had to help this program.'"

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With the losses piling up, average scanned ticket attendance dwindled to 6,504 at the 22,090-seat KFC Yum! Center during his tenure. In late January, the athletics department projected a $2 million ticket revenue shortfall.

"While there have been brief moments of progress," Heird told reporters March 13, "I did not see the sustained progression I was looking for.

"While this decision was incredibly difficult to make because of who Kenny is and what he means to our university, I do feel it is the correct decision for this program and this department," he added. "I want to thank Kenny and his family for pouring their hearts into Louisville. We wish them well; as Kenny's coaching career will undoubtedly continue elsewhere."

Louisville hired Charleston's Pat Kelsey as Payne's successor March 28. During his introductory news conference, the 48-year-old Cincinnati native said Payne was "welcome back here just like everybody else."

"Obviously, it didn’t work out the way we wanted it; but he is a major, major part of Card Nation," Kelsey said, referring to Payne's playing career (1985–89) at the university under Hall of Fame coach Denny Crum; which included helping bring home a national championship as a freshman in 1986.

Kelsey, who brings 12 years of head-coaching experience to the position, is earning a $2.3 million annual base salary through March 15, 2029, according to a copy of his term sheet distributed after his introductory news conference.

When asked about Payne's separation agreement that day, Heird referred reporters to the open records process.

If Kelsey is terminated without cause by the university, his term sheet says 95% of his remaining guaranteed compensation will be subject to mitigation and offsets and will be payable over the remainder of the term.

The Cards had to pay $1.1 million for poaching Kelsey from the Cougars, per USA TODAY Sports' Steve Berkowitz.

They are also on the books for Mack, who is being paid in monthly increments of $133,333.33 until Jan. 31, 2025, as part of a $4.8 million severance package.

Reach Louisville men's basketball reporter Brooks Holton at bholton@gannett.com and follow him on X at @brooksHolton.

This article originally appeared on Louisville Courier Journal: Kenny Payne salary: Louisville basketball buyout deal to pay $7.25M