Yes and no, it depends if the university is public or private. If you look up highest paid public employee, in just about every state it’s a head college football coach. UT is a public school, so Heupel is considered a public employee.
I work for a state entity and I can tell you that this isn’t true. It’s one of those assumed things that administration likes to use as an excuse if they don’t have any good internal candidates. But overall, no it’s not a rule.
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