The financial terms in the contract of new ISU men’s basketball coach Greg McDermott are less than those of the previous two coaches.

Steve Malchow, senior associate director of athletics, said McDermott’s contract would guarantee him a minimum of $4.65 million during the next six years. His base salary starts at $650,000.

The contract stipulates McDermott receive and annual $50,000 raise in addition to any financial incentives for the team’s success on the court, Malchow said.

“We have a compensation package for coach McDermott based on his qualifications and level of experience,” he said.

Although the written contract has not been finalized, Malchow said McDermott made a verbal commitment to Iowa State.

McDermott’s contract will include up to $250,000 in annual performance incentives: $50,000 for making the NCAA tournament, $50,000 for advancing to the Sweet 16, $50,000 for making it to the Final Four, $50,000 for winning the tournament, $25,000 for winning the Big 12 regular-season title and $25,000 for winning the Big 12 tournament, Malchow said.

McDermott could also earn $25,000 for participation in the National Invitation Tournament during his first three years as coach, although the bonus would not be added to his base salary.

For instance, if Iowa State advances to the NCAA tournament next season, McDermott’s base salary the following year would increase by $100,000 – $50,000 for making the tournament and $50,000 for the annual increase.

Any performance incentive McDermott’s team earns would be added to his base salary the following season.

“He would get his $50,000 raise and his $50,000 bonus,” Malchow said. “So that ratchets everything up $50,000 every year.”

McDermott earned more than $188,000 in 2005 at the University of Northern Iowa before coming to Iowa State. Similar deals were in place for the past two ISU men’s basketball coaches.

Recently dismissed coach Wayne Morgan agreed to a five-year $3.75 million contract in July 2005, according to his contract. Morgan’s deal included at least $200,000 in performance-based bonuses. Iowa State paid Morgan $1.5 million as part of his termination.

Former coach Larry Eustachy agreed to a 10-year, $11 million contract in July 2001. His deal included at least $400,000 in performance incentives.

Eustachy resigned May 5, 2003, after photos published in The Des Moines Register showed Eustachy partying with students from the University of Missouri, according to past Daily staff reports.

Eustachy accepted a $960,000 settlement from Iowa State in exchange for his resignation.