Former Nebraska head coach Scott Frost has launched a high‑stakes lawsuit against the University of Nebraska and its Board of Regents, alleging that the school saddled him with a massive tax bill for income he never received. The suit, filed in Lancaster County District Court, claims the university artificially inflated Frost’s taxable earnings by accelerating future liquidated‑damages payments onto his 2022 W‑2 form.
Frost, who was fired three games into the 2022 season after a 16–31 tenure at his alma mater, argues that Nebraska’s decision to report the present value of his 2025 and 2026 buyout payments created a $1.7 million tax liability out of thin air. According to the filing, Frost insists those payments were guaranteed and therefore could not be reduced, offset, or forfeited — directly contradicting the university’s suggestion that the amounts could later be adjusted without explanation.
The former coach is seeking at least $5 million in damages and a judicial ruling that the contract’s offset clause expired on December 31, 2024, the same date he says his employment would have naturally ended.
Frost also argues that his contract did not require him to mitigate damages by finding new employment, a point he highlights despite later joining the Los Angeles Rams as a senior analyst in 2024 and returning to UCF as head coach in 2025.
The lawsuit claims Frost attempted to engage the university in “productive dialogue” to clarify whether his 2022 income had been overstated or whether his future buyout payments were fully guaranteed. Instead, he alleges the school was dismissive and refused to correct what he describes as a harmful accounting maneuver.
In a striking development, Frost says an IRS audit validated his position, concluding that Nebraska improperly accelerated the 2025 and 2026 payments and that those amounts were not subject to employment tax. The filing characterizes the university’s stance as “self‑serving” and taken in “bad faith.”
Frost recently completed his first season back at UCF, finishing 5–7 as he begins his second tenure with the Knights. Meanwhile, his legal battle with Nebraska is poised to become one of the most contentious financial disputes involving a major college football program in recent memory.
