Depends on the contract at the old school. Most do have an offset provision, like Butch Jones had with UT, which usually also require the former coach to use his best efforts to find new employment to mitigate the damages caused by the firing. (Technical legal term for the money that keeps coming is "liquidated damages".)A coaches "new" salary is deducted from what he's owed. That's why these guys come to Bama for 48K a year...We paid the 48K, the Vols paid him $4,952,000 per year while he worked with us to beat them...it's freaking hilarious...
Some coaches don't have the offset. I believe Sumlin at A&M didn't, but I'm not certain. The news stories said that Malzahn's contract with AU didn't include an offset and required a huge payment within 30 days. He and his agent (Sexton?) likely felt that the buyout would make it harder for AU to fire him.