Here's a scanned copy of Les Miles contract that was last updated and signed in 2009. Look at how little the actual university pays him - $300,000 with the rest coming from his TV/Radio deal and for other functions all related to and coming out of the pocket of the TAF (Tiger Athletic Foundation).
He who pays the cost is the boss. Which also means that for all practical purposes the AD can't hire a new coach without TAF approval because the TAF and the University works out a separate contract so that the University can guarantee the money that the TAF will pay. With no TAF support, no money and no coach. I've said it before, you only have to upset a very select few people (at LSU it's around 4-6 members of the TAF) and your days are numbered. I'm guessing that it's this way at most Universities where the backer program carries the load money wise.
Les Miles Contract If he leaves for Michigan as specifically called out in his contract (bottom of page 11 specifically states he shall not seek nor accept a job at University of Michigan) to get out of his contract he owes $1.25 million which would be a drop in the bucket.
The AD at LSU released today that he had not been contacted as of yet by Michigan for permission to speak with Miles. I wonder if someone got their shorts in a wad after the last episode of trying to get Miles.
