I've been under the impression that this is how it works. He has an employment contract. Except for probably a few exceptions, the expectation is he works for the term set forth therein, and is compensated accordingly. Any "buy out" is mutually negotiated between him and the University. So, his "buy out" is the value of the time left on his contract. Not sure this is new or novel with respect to Syracuse.
The greatest concern at the time was that Dino would be poached away by a program like USC or some $€¢ team for whom money is no object.
In those instances, the buyout is there to:
Potentially dissuade that.
Provide for a war chest to hire a new coach and staff if it happens.
People forget that the downside of a buyout is -
That the school needs to pay that to make the coach go away, if he’s no longer getting it done.
Llvll gave Petrino a HUGE buyout, and then had to can him.
I’m pretty sure Fedora got the same at UNCheat.
And SUNJ famously went and spectacularly outbid NOBODY,
to give their coach an entirely unneeded extension, only to then fire him the following season.
In Dino’s case, the extension was warranted.
And - it is NOT the reason he won’t be fired.
Wildhack knows that change for the sake of change is rarely the correct move.