Jim Harbaugh has signed his new contract.
While bringing Harbaugh back at half his salary creates loads of optical issues for Michigan moving forward, that is indeed what the school is doing.
The new deal, effective Monday, guarantees Harbaugh $4 million with bonuses up to $3.475 million, which is lower than his base salary in 2020. The salary takes him from first to eighth among Big Ten head coaches.
Also lower is the buyout, on both sides.
Michigan would owe Harbaugh just $4 million should the school make a change after 2021, which drops by $1 million per year. Harbaugh's buyout begins at $2 million and decreases by $500,000 per year.
"I continue to believe that Jim is the right man to lead our program in pursuit of Big Ten and CFP championships," said AD Warde Manuel. "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."
"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," said Harbaugh. "My additional thanks to Doug Gnodtke, our football staff and 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."
As always, stay tuned to The Scoop for the latest.
Update> Bruce Feldman went on TV to say, "Well the salary went down a bit; but the incentives are pretty strong in Jim Harbaugh's favor if it goes well."
Salary went down "a bit". Really? He made $8 million last year.
In no scenario can he earn that amount going forward. If Michigan goes undefeated and wins the Natty (Michigan's best record under Harbaugh is 10-3) Harbaugh would still earn less than his original $8 million number in every single year under this new deal. That's not "pretty strong in Jim Harbaugh's favor".