Former Husker coach Scott Frost files suit against NU

Former Husker football coach Scott Frost is suing the University of Nebraska over a disputed portion of his contract.

According to the lawsuit, which was filed Friday in Lancaster County District Court, Frost is seeking damages of at least $5 million for what his attorneys say were, "careless, conflicting and illogical communications and actions around its post-employment obligations to Coach Frost.”

Frost, who went 16-31 at NU, was fired three games into the 2022 season, triggering a $14 million buyout clause in his contract.

According to the lawsuit, the university notified the coach that it intended to include the present value of its 2025 and 2026 liquidated damages payments on his 2022 W-2. The filing argues that not only was the "phantom" income incorrectly included, it also created an additional $1,720,000 of income tax liability without Frost receiving the liquidated damage payments on which the additional tax was based. The W-2 showed Frost's taxable income as $9,519,852.89, which the court filing said, "represented the full amount of salary and liquidated damages payments paid to Coach Frost for 2022 and due and owing to Coach Frost for 2025 and 2026."

The lawsuit alleges that the university held onto Frost's 2022 W-2 until September 2023, "well beyond the date that would permit Coach Frost to timely file his 2022 income tax return." Frost said that he was confused upon receiving the W-2, because he "knew full well that he did not receive $9,500,000 in 2022." Frost said he incurred legal fees and late filing penalties as a result of the delayed W-2.

The filing said the Internal Revenue Service agreed with Frost in that the University wrongfully accelerated the 2025 and 2026 liquidated damage payments and that the payments were not subject to employment tax.

The lawsuit also alleges that the university owes Frost an additional $5 million in compensation.

Like most college football coaching contracts, Frost’s contract contained an “offset” clause, meaning that if and when Frost found another job, the university would only owe him the difference between his NU contract and his new one.

The lawsuit claims that period ended Dec. 31, 2024, which was the date included in the original contract Frost signed with NU. That would mean NU was on the hook for $2.5 million in payments to Frost in each of the final two years of his contract, 2025 and 2026.

However, the university, in letters included in the lawsuit, said Frost's hiring as coach for the 2025 season at the University of Central Florida, where he is paid almost $4 million a year, "forfeits the entirety of the amounts owed to Coach Frost for the period between Jan. 1, 2025 and Dec. 31, 2026" under Frost's contract with the university.