Scott Frost Sues Nebraska Over Buyout Tax Reporting

Scott Frost, the head football coach at the University of Central Florida, has filed a lawsuit against the University of Nebraska and its Board of Regents, accusing the institution of improperly reporting future buyout payments as income and leaving him with a $1.7 million tax liability on money he never received. The suit, lodged in Lancaster County District Court, seeks at least $5 million in damages and a court ruling to enforce portions of his original contract.

Frost served as head coach at his alma mater, Nebraska, from 2018 to 2022, compiling a 16-31 record over five seasons. He was dismissed in September 2022, three games into the season following a 1-2 start. Under his contract, which extended through December 31, 2026, the university owed him approximately $15 million in liquidated damages as a buyout. The dispute centers on how Nebraska handled the reporting of those payments for tax purposes.

According to the lawsuit, university officials notified Frost in December 2022 that they intended to include the present value of the 2025 and 2026 payments on his 2022 W-2 form, treating them as taxable income for that year. This action, Frost contends, inflated his reported...