Ducks hand Kelly new six-year, $20.5 million contract

In his first year as head coach and into his second offseason at Oregon, Chip Kelly dealt with numerous off-field incidents that could’ve proved to be a major distraction for the program on the field.

That proved to be far from the case as Kelly won a Pac-10 title as a first-year head coach and has gotten the team off to a 4-0 start and lofty No. 4 ranking in his second season.

And, for all of the on-field success thus far, Kelly today has been rewarded.

According to a press release issued by the school, Kelly has signed a six-year contract extension that could keep Kelly at the school through the 2015 season, although it will officially run through June 14, 2016.

Talks on the new deal began last spring, the release said. The total value of the new agreement is $20.5 million. His final compensation in his first year as head coach was $1.8 million.

“The success of a football program at any university is a crucial component to the financial security of any collegiate athletics department at the Division I level, specifically those who are financially self-supporting,” Oregon Athletics Director Rob Mullens said in a statement. “Chip Kelly’s track record in a short amount of time speaks volumes for his character, integrity and ability to lead this program to a new set of standards.

“It became clear before my arrival at Oregon that retaining him to head the university’s football program was a priority. This is an investment in the future success of Oregon athletics and an investment in retaining one of the brightest college coaches in the country.”

Here are a few more of the particulars per the press release:

The first year of his new pact will guarantee the Manchester, N.H., native a minimum of $2.4 million in addition to the customary incentives tied to conference and national championship finishes, national rankings and his teams’ academic success. Following the 2011 campaign, his incentives would gradually diminish while a greater share of his annual compensation would be guaranteed. In his final two years of the contract, his only remaining on-the-field incentives would be tied to an appearance in the BCS national championship game and winning 12 or more regular season games. His remaining incentives would be contingent upon his teams reaching academic benchmarks.

Provisions of the new package calls for the 21-year coaching veteran to receive a one-year rollover extension for winning a minimum of 12 games or participating in the BCS Championship Game in either the 2010 or 2011 seasons. For each year after that, the rollover would go into effect for posting 11 or more wins, including a bowl victory, or winning a BCS bowl game among his 10 or more victories.

The new agreement also calls for what is labeled a substantial buyout should he leave the university early for another job. Per the new contract, Kelly would be required to reimburse the university $4 million should he decide to vacate his Oregon head coaching position following the first year of the agreement, with that buyout gradually reduced by $250,000 each subsequent year until remaining at $2 million following the sixth season or longer of the deal.