After signing a five-year extension to remain at Michigan, Jim Harbaugh is getting a little bit of a raise after taking a pay cut before last year.
Jim Harbaugh is getting paid.
The Michigan football head coach signed a five-year extension on Wednesday after flirting with a return to the NFL earlier in the offseason. That, along with winning Coach of the Year after leading Michigan to a Big Ten championship and College Football Playoff berth meant Harbaugh had leverage when it came to a new deal and a raise.
Harbaugh will earn $36.6 million over the life of the deal, averaging $7.336 million per year, or about what Harbaugh made before taking a pay cut ahead of last season.
Harbaugh will earn $7.05 million in base pay next year that will grow to $7.6 million by the end of the deal.
Jim Harbaugh buyout details of new Michigan contract
If Harbaugh leaves after the 2022 season, he would owe Michigan a $3 million buyout. The buyout drops to $2.25 million, $1.5 million, $750,000 and then nothing at all. Harbaugh said he is done flirting with the NFL after interviewing with the Minnesota Vikings, but if he changes his mind over the next few years, it’ll be manageable to meet the buyout should he want to leave Michigan.
Jim Harbaugh contract incentives
Much of the incentives in Harbaugh’s contract are what was in his previous contract. Harbaugh will receive $1 million for a Big Ten championship, $1 million for a national championship and $500,000 for a College Football Playoff berth. Additionally, Michigan is making a $1 million annual contribution to a 403(b) retirement fund.
All told, Harbaugh’s annual compensation comes to around $8 million, which is pretty much in line with what he was making before he was forced to take a pay cut.
If Harbaugh can repeat what he did last year when Michigan beat Ohio State, won the Big Ten and make the playoff, it’ll be a bargain. If last year was a mirage and Michigan reverts to annually losing to Ohio State and being an afterthought in the playoff conversation, Harbaugh and Michigan fans may be wishing he leaves for the NFL.