After plenty of speculation throughout the season, Jim Harbaugh has officially signed a contract extension with Michigan.
As expected, the new deal features some pretty significant pay cuts. Wolverines reporter Orion Sang posted a chart of Harbaugh’s base salary and possible bonuses on Twitter Friday evening.
The terms of Jim Harbaugh's new deal pic.twitter.com/mUFDJIunzC
— Orion Sang (@orion_sang) January 8, 2021
Jim Harbaugh’s five-year, $21 million extension is far cry from his previous contract which saw the coach receive a little over $8 million per year. With an incrementally increasing base salary of over $4 million, Harbaugh will get just over half of his original yearly salary.
While his base is significantly down, Harbaugh has plenty of incentives to succeed over the next five years.
Obviously, the largest bonuses come with wins in the Big Ten championship and national championship games ($1 million apiece). Coach of the year awards, Big East titles and New Years Six bowl appearances yield smaller results.
With this many incentives, Michigan put a cap on Harbaugh’s earnings at about $7.5 per year. The Wolverines buyout for the coach starts at $4 million in year one and decreases $1 million per year.
After Jim Harbaugh’s first six years with the program, an incentive-based lower salary is clearly the right choice.
Harbaugh has a history of taking good teams just far enough until they eventually fall in the postseason. During his six-year coaching tenure, Harbaugh has an embarrassing 1-4 bowl-game record.
From now on, the Wolverines coach will have to earn his keep.