Michigan football coach Jim Harbaugh signs extension through 2025 at lower base salary
CORRECTION & CLARRIFICATION: A prior version of this story misstated the length of Jim Harbaugh's extension with Michigan.
Jim Harbaugh is staying with Michigan football.
Harbaugh agreed to a contract extension that could keep him in Ann Arbor through 2025, according to a news release from the program on Friday.
The extension adds four years to Harbaugh's deal, which had only one year remaining, and includes "revised financial terms effective Jan. 11, 2021."
According to the Memorandum of Understanding signed by Harbaugh and Michigan athletic director Warde Manuel, and obtained by the Detroit Free Press, the coach will make $4 million in 2021, then $4.101,850, $4,206,756, $4,314,808 and $4,426,102 the following years.
Harbaugh will earn a $500,000 bonus if the Wolverines win the Big Ten East Division outright, $1 million if they win the conference title, $500,000 if they reach the College Football Playoff and $1 million if they win the national title.
If Michigan wants to buy out Harbaugh, it would cost $4,000,000 for the 2021 season, decreasing by $1 million every following year. If Harbaugh wants out of his deal, it would cost him $2 million this year, decreasing by $500,000 every following year.
"My thanks to Athletic Director Warde Manuel for the trust that he has shown in allowing me to continue to coach the University of Michigan football team, and to President Mark Schlissel and the Board of Regents for their on-going support," Harbaugh said in the released statement. "My additional thanks to Doug Gnodtke, our football staff and as those departments on campus who continue to support our mission. Over the past few weeks, Warde and I had discussions that have been honest, open, insightful and constructive in moving our football program forward. Discussions that I look forward to continuing over the months and years ahead. We have a plan.
"There is work to be done and challenges to be addressed. These challenges are being addressed as we continue to strive for excellence in the classroom and championships on the field, a message that I hope is noted in the language of our agreed-upon contract.
"Thanks to our University of Michigan players and their families who have placed their trust in our program and our goals. All our energy and focus is directed toward laying an outstanding foundation for the 2021 football season."
Harbaugh, 57, has a 49-22 record since being hired before the 2015 season, immediately returning the program to respectability after a string of poor seasons.
But Harbaugh's recent struggles had left his future in doubt. He has yet to beat Ohio State or advance to the Big Ten championship game. And the Wolverines had a 2-4 record in 2020, including losses to heavy underdog Michigan State, to Indiana for the first time since 1987 and a winless-at-the-time Penn State team. Michigan's final three games of the season were canceled due to COVID-19 concerns within the program.
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"I continue to believe that Jim is the right man to lead our program in pursuit of Big Ten and CFP championships," Manuel said in the statement. "Our program didn't achieve at a level that anyone expected this year, but I know those setbacks will drive the coaches, players and staff moving forward. Jim is a tireless worker and competitor. Following the completion of the season we talked for many hours on what it will take for Jim to lead and get us back on the right trajectory.
"Jim loves the University of Michigan and this football program. He has been committed to this university, athletic department and football program since his days as a player and returning in 2015 as the head coach. He wants to do everything possible to build a championship football team while graduating our student-athletes. We all need to do our part to continue to help in that pursuit as it takes everyone pulling the same direction to have a championship level program."
The extension provides a resolution to Michigan's coaching situation nearly a month after the early signing period, which ran Dec. 16-18. Harbaugh entered this season as the only Power Five coach with less than two years remaining on his contract.
Harbaugh told reporters this summer that a new contract was in the works, but the coronavirus pandemic paused those discussions.
Harbaugh’s original contract was set to expire three days after the final game of the 2021 season. According to Paste BN Sports' database of college football coaching salaries, he was scheduled to earn a $7.79 million salary — the fourth-highest figure in the country.
Manuelhas repeatedly expressed his desire to keep Harbaugh at Michigan for the rest of his coaching career.
“I stand by my decision and my statement that I want him to retire here,” Manuel said at the Big Ten athletics director meetings in May 2019.