An NFL "coach trade" refers to a team hiring a coach who is currently under contract with another NFL team. This is done through a negotiation between the two teams, where the hiring team pays compensation, usually in the form of draft picks, to the team that currently employs the coach. A prominent example is the Sean Payton trade from the Saints to the Broncos in 2023.
Contract with the coach:
After the two teams agree on the compensation, the hiring team is then allowed to negotiate a new contract with the coach.
Notable examples:
Famous coaches involved in trades include Bill Parcells, Herm Edwards, and Bill Belichick. The most recent major coach trade was Sean Payton, who was traded from the New Orleans Saints to the Denver Broncos.
Negotiation process:
A team interested in another team's coach must first contact the coach's current team to begin negotiations.
Compensation:
If both teams agree to a deal, the hiring team gives up compensation to the other team. This compensation is most often draft picks, as in the Sean Payton trade where the Broncos sent picks to the Saints.