How do they actually work in reality? Using Shoop as an example, is this scenario accurate? Shoop has an 800K buyout at PSU. He goes to TN and a group of boosters pays the buyout. So nothing comes out of the UT treasury. Let's say Shoops TN contract also has an 800K buyout. If he leaves TN some other school's boosters will pay the 800 to TN. So TN just made 800K off of this transaction. Almost seems like a bit of a scam and seems like a buyout clause is insignificant to a coach when signing a K.