The contract extension between Jim Harbaugh and the Michigan Wolverines is now official and the new deal kicks in on Monday, Jan. 11. It had long been reported that this would be a deal that features a lower base salary with incentives to make money back. The financial details of Harbaugh’s contract were released to members of the Michigan media on Friday evening and layout exactly what he will be judged on.
Harbaugh’s deal is a five-year, $21 million contract that ties him up through the 2025 season. He had one year remaining on his current deal, which has been altered to fit under this new arrangement.
Harbaugh will draw a base salary of $605,000 over the next five years with additional compensation that nets him $3.3 million in 2021 and increased incrementally to $3.8 million in 2025. His total base compensation for the 2021 campaign is $4 million and tops out at $4.4 million in 2025.
Incentives have been laid out over the next five years that max out at $3.475 million. Here is how they break down:
— Big Ten Coach of the Year: $50k
— National Coach of the Year: 75k
— APR: $150k
— Big Ten East champs (outright): $500k
— Big Ten champs: $1 million
— NY6 Bowl: $200k
— College Football Playoff Semifinal: $500k
— College Football Playoff title: $1 million
The most that Harbaugh can make after this upcoming season is $7.475 million and that number can top out as high as $7.9 million in 2025. The buyout numbers go in the opposite direction, as Michigan would owe Harbaugh only $4 million after 2021 if the two sides decide to part ways. That number decreases by $1 million each additional season until 2025 when both Harbaugh and Michigan could walk away for nothing.
So that’s how it all breaks down. This is an extremely Michigan-friendly deal and it can become Harbaugh friendly if he is able to do what he was hired for when he arrived in 2014.