On June 27, 2025, the Louisiana Supreme Court, in a 5–2 decision, ruled that Ed Orgeron’s contract extension and buyout payout from the LSU football program constituted community property, entitling his ex-wife Kelly Orgeron to $8,134,500—roughly half of his total $16.949 million exit package (fox8live.com).
The legal crux? Whether the payout for liquidated damages—stemming from Orgeron’s termination without cause—was acquired during the marriage and thus jointly owned, or if it was separate property tied solely to future performance post-divorce.
Major chronological milestones:
- January 14, 2020: Orgeron signs a binding term sheet with LSU, outlining a contract extension, including enhanced salary and a substantial “liquidated damages” clause
- February 26, 2020: Just 43 days later, he files for divorce from Kelly
- April 2020: LSU’s Board of Supervisors formally ratifies the extension—after divorce proceedings began
- October 18, 2021: Orgeron is dismissed “without cause”, triggering the contract’s liquidated-damages clause and LSU’s commitment to pay out $16.949 million in 18 installments, beginning Dec 2021 through Dec 2025
The timeline raises ambiguity: was the term sheet binding on January 14, during the marriage, or did enforceability hinge on April’s formal board approval—after the marriage was effectively over?
- Binding date matters: Since the term sheet was clearly binding on January 14, this took effect before the divorce filing Community property law: Under Louisiana law, assets acquired during marriage are presumed community property unless specified otherwise (fox8live.com).
- Liquidated damages are income: The payout constituted “income” or “wages” for past and future LSU performance, thus falling within the marital estate (law.justia.com).
- Golden parachute rationale: Justice Hughes described the liquidated-damages clause as a form of “security blanket” benefiting both spouses: “The coach, and his wife, were given the comfort … that he would not leave empty-handed” (fox8live.com).
- Final order breakdown: Of the total $16.949 million, $680,000 went to Orgeron’s agent and was deducted, leaving $16.269 million as divisible. Kelly is awarded $8,134,500, payable as part of the remaining installments in 2025 (fox8live.com).
- Post-community event: Justices Jay McCallum and Cade Cole argued that the right to payment only arose post-divorce—after community dissolution.
- Employment-based compensation: They stressed that the buyout was wages for future work, not a retroactive reward for job performance during marriage (fox8live.com, reddit.com).
- Lower court backing: Both the district court and the First Circuit Court of Appeal ruled the buyout was Orgeron’s separate property, giving weight to the argument that the financial benefit was tied to service performed after the divorce began (fox8live.com).
In December 2019, Orgeron capped LSU’s historic season by winning the College Football Playoff National Championship, thanks largely to quarterback Joe Burrow (si.com).
That success led LSU to offer a lucrative extension in Jan 2020, with salary reportedly nearing $7 million per year, and a provision to ensure future financial security (si.com).
By late 2021, disappointments in performance (a 5–5 COVID-shortened season in 2020; a 6–7 finish in 2021) led LSU to dismiss Orgeron “without cause.” That move triggered LSU’s contractual obligation to pay him the agreed buyout
Reddit reaction to the buyout highlighted its staggering size—$16.949 million total—with breakdowns showing installments starting at $5.68 million in December 2021
Louisiana follows a community property regime: assets and income earned during marriage are considered jointly owned unless there’s a contractual waiver or legal exception
For contract-based income, the timing of acquisition is critical. The majority focused on when the agreement became binding, not just when payments were made.
While LSU’s board officially approved the extension in April, the court majority emphasized that the January term sheet contained binding terms—including salary bumps and built-in liquidated damages—making it enforceableThe dissent countered that a mere “agreement to agree” was not binding; actual rights—and thus community rights—only crystallized post-approval, and that was after divorce proceedings began .
Justice Jefferson Hughes, writing for the majority, framed the liquidated-damages clause as a form of marital security:
He stressed that such clauses operate as insurance—rewarding past performance while safeguarding future income—and that both spouses benefit, financially and emotionally.
This foundation, Hughes said, makes it justifiable to treat the payout as marital property, tapping into Louisiana’s presumption that contracts executed during marriage are joint property .
Justices McCallum and Cole dissented on key technical grounds:
- They claimed the vested right to liquidated damages did not exist until Orgeron’s dismissal in October 2021—after divorce—thus making it separate property (fox8live.com).
- Their view: the contract included future obligations, and compensation was tied to future performance—not to performance before or during marriage.
McCallum emphasized legal nuance:
LSU decided to pay Orgeron’s buyout via 18 installments stretching through December 2025
- Dec 15, 2021: $5 million to Orgeron + $680k to his agent
- Jan 15, 2022: $667k (agent)
- Jun 15, 2022: $1 million
- Jul 15, 2022: $750k (agent)
- Continuing biannual payments until Dec 15, 2025
After deducting the $680k agent fee, $16.269 million remained. Kelly’s 50% share equals $8,134,500, which will be drawn from the upcoming installments—June, July, and December 2025 .
The ruling secures an $8‑million payout—providing financial closure and equity from what she contended was marital property. She married Ed in the mid‑1990s (via Liberty Bowl blind date), had three sons, and divorced in 2020 after 23+ years together (en.wikipedia.org).
Now age 63, Orgeron may see nearly half of his final installment—$8.1 million—redirected to his ex-wife. His public identity rose dramatically after LSU’s 2019 title, but the payout now starts to look like an “empty nest” gift to support his ex’s future—something highlighted in both majority and dissenting opinions (si.com).
Notably, Orgeron has not returned to coaching after his 2021 departure (si.com).
This case sets a strong precedent in Louisiana civil law, reinforcing that contractual rights earned during marriage—even if realized later—can constitute community property. For high-earning professionals, it’s a cautionary tale:
- Timing of “binding” events can tip marital asset classification.
- Liquidated damages, golden parachutes, retention bonuses tied to service often span marital timelines.
- Future earnings can be indirectly tied to past performance and thus subject to equitable distribution.
As compensation structures grow more complex, drafting precisely phrased contracts with respect to marital status and community regimes becomes critical.
- FOX 8 noted the court’s emphasis on the early binding date and overturned the prior lower-court rulings (wbrz.com, fox8live.com).
- Sports Illustrated/College Football HQ underscored the benefits shared by both spouses and detailed Orgeron’s record before and after championship (si.com).
- WBRZ dubbed the opinion “audacious, nearly fraudulent” in regard to Orgeron’s effort to shift contract date (wbrz.com).
Observers see the case as a landmark reinforcing community property law in high-dollar contracts. Many attorneys stress drafting clarity: labeling whether compensation is for past performance (shared asset) or future work (separate property) matters deeply.
Orgeron’s situation is not unique—but it’s among the most illustrative of late:
- His $16.9 million buyout tops many coaching exit packages (theadvertiser.com).
- LSU later hired Brian Kelly under a 10‑year, $95 million contract—hints at the sustained high stakes in Power 5 coaching contracts (reddit.com).
Comparatively, other high-profile coach exits in that era (Dan Mullen at $12M, Gary Patterson $12M, Jimbo Fisher unknown but certainly high) frame Orgeron’s package as elite—but entwined with marital complexities few anticipated .
- Contract Revisions: Athletic departments and agents will likely specify which sums count as separate or community property, perhaps inserting waivers or marital disclaimers.
- Legislative Clarification: The case could prompt statutory adjustments in Louisiana to define when liquidated damages vest.
- Similar Litigation: As multimillion-dollar coaching contracts proliferate, similar suits over community property and divorce may increase.
- Financial Implications: Receiving $8+ million changes Kelly’s personal trajectory; for Orgeron, the verdict dims any “clean break” from LSU and adds financial weight to his post-coaching life.
- Public Perception & Coaching Reputation: While public sympathies vary, most see the ruling as legally solid. Orgeron’s legacy is now tied to both his 2019 triumph and a major financial/legal outcome.
The Louisiana Supreme Court’s 5–2 decision crystallizes a pivotal moment in the evolving realm of high-stakes sports contracts and family law:
- It underscores the importance of timing: a contract’s effective date can turn future millions into community property.
- It treats liquidated damages as marital income, reinforcing legal norms that “future” compensation tied to work begun during marriage is not automatically exempt.
- It sends ripples: from the drafting rooms of college athletic departments to the circuit courts and bar association seminars.
For Kelly Orgeron, the decision transforms financial uncertainty into tangible equity. For Ed Orgeron, it means half of his final LSU installment goes directly to his ex—forcing a reckoning with how we define entitlement, community, and reward in the elite echelons of college athletics.
What’s next? December brings a new installment payment, making Kelly a beneficiary once more. Whether Orgeron returns to coaching remains uncertain—but the financial echo of LSU’s 2019 glory will resonate for years to come.
If you’d like a deeper dive into Louisiana property law, contract drafting tips for high-dollar sports deals, or comparisons with other high-profile coaching separations, I can absolutely unpack that too. Let me know how you’d like to go next!
