Major contract terms for Head Coach Jim Harbaugh
Major contract terms for Head Coach Jim Harbaugh
- Seven-year contract, $5 million annually with 10 percent increases after years 3 and 5.
- Incentive payments based on performance related to Big Ten championships, bowl appearances, coaching awards and team academic performance.
Conference Performance:
Team plays in Big Ten Championship game: $125,000
or Team wins Big Ten Championship game: $250,000
Post-Season Performance:
Team plays in Bowl Game selected by College Football Playoff Selection Committee: $200,000
or Team plays in four-team College Football Playoff Game: $300,000
Team wins National Championship Game: $500,000
Coach of the Year:
Big Ten Coach of the Year (by vote of Big Ten coaches): $50,000
Associated Press, Paul “Bear” Bryant, Sporting News, Walter Camp, Maxwell Football Club, or ABC/ESPN National Coach of the Year (can only achieve one per year): $75,000
Academic Performance:
Academic Progress Rate (APR) of 960 or higher (both multi and single year calculation): up to $150,000 per year
- $2 million signing bonus
- Following review by the athletic director on the progress of the football program after the 2015 season, the University of Michigan will determine an appropriate deferred compensation arrangement.
EDIT: If my math is correct, the total contract is worth $49,375,000. That is pretty close to what was originally reported. But, that is only possible if he qualifies for every maximum incentive (coach of the year, winning national championship, etc.).
|
Year
|
Signing | Base | Win Big Ten Championship | Play in Four-team College Football Playoff | Win National Championship | Big Ten Coach of the Year | National Coach of the Year | APR 960+ | Total |
| 0 | 2,000,000 | 2,000,000 | |||||||
| 1 | 5,000,000 | 250,000 | 300,000 | 500,000 | 50,000 | 75,000 | 150,000 | 6,325,000 | |
| 2 | 5,000,000 | 250,000 | 300,000 | 500,000 | 50,000 | 75,000 | 150,000 | 6,325,000 | |
| 3 | 5,000,000 | 250,000 | 300,000 | 500,000 | 50,000 | 75,000 | 150,000 | 6,325,000 | |
| 4 | 5,500,000 | 250,000 | 300,000 | 500,000 | 50,000 | 75,000 | 150,000 | 6,825,000 | |
| 5 | 5,500,000 | 250,000 | 300,000 | 500,000 | 50,000 | 75,000 | 150,000 | 6,825,000 | |
| 6 | 6,050,000 | 250,000 | 300,000 | 500,000 | 50,000 | 75,000 | 150,000 | 7,375,000 | |
| 7 | 6,050,000 | 250,000 | 300,000 | 500,000 | 50,000 | 75,000 | 150,000 | 7,375,000 | |
| Total | 49,375,000 |
December 30th, 2014 at 1:35 PM ^
- Following review by the athletic director on the progress of the football program after the 2015 season, the University of Michigan will determine an appropriate deferred compensation arrangement.
Does anyone know what this entails exactly, has UM had similar terms with past coaches?
December 30th, 2014 at 1:38 PM ^
Yeah, I was wondering about that, too.
December 30th, 2014 at 1:41 PM ^
It's wiggle room allowing Michigan to match other offers if needed without having to reform the contract.
Can also be used to shift the compensation to match other parties in the conference and around the league and straight up increase the compensation based on results.
December 30th, 2014 at 1:41 PM ^
December 30th, 2014 at 1:44 PM ^
Clever actually -- not only does money not become the focus of this story ("Harbaugh went to michigan because of the dump truck full of money") but they also get to essentially renegotiate his salary after another year to figure out the financing of it.
I wonder if he asked them to give him less this year so he can afford any staff he wants and find more money for him in a year or two.
December 30th, 2014 at 2:10 PM ^
I assume the "appropriate deferred compensation arrangement" is an IRC 409(a) plan. Otherwise known as known as a non-qualified, deferred compensation plan or golden handcuff plan. These are used often in the business world to lock up key executives and prevent them from being a hired gun job jumping. When pimp-hand uttered something about market conditions, my immediate thought was a 409(a) since the funding is made by an employer yet managed by the employee in an investment account. This compensation is not considered guaranteed in an employment contract.
December 30th, 2014 at 2:51 PM ^
It's like a 401(k) plan, but for high income earners.
December 30th, 2014 at 4:53 PM ^
They are often funded with life insurance contracts that allow the beneficiary, the university, to recoup the compensation upon the insureds, Harbaugh, death. Everybody wins.
December 30th, 2014 at 1:36 PM ^
If we're judging by past accomplishments, he's worth every damn penny.
December 30th, 2014 at 1:37 PM ^
Not in the extreme stratosphere by today's standards. He could have gotten this at a dozen places.
The man is coming here for passion and the love of Michigan.
I like that.
December 30th, 2014 at 1:37 PM ^
December 30th, 2014 at 1:38 PM ^
December 30th, 2014 at 1:41 PM ^
I think it was based on assumptions from NFL reporter guys, then it turned into a game of telephone. Total B.S.
December 30th, 2014 at 2:35 PM ^
Didn't Brian report on it? If so it must have come from a source in the M camp.
If it was intentionally leaked, it was a shrewd move; primes the field with the "Michigan is serious" meme, and might dissuade NFL teams who didn't want to have to beat it from pursuing Harbaugh. That migth be overthinking it though.
December 30th, 2014 at 1:49 PM ^
December 30th, 2014 at 1:39 PM ^
The deferred comp package will be where the magic will happen. Also those performance bonuses appear to be cumulative so that would add up to a nice sum as well. Nice payday and better cost of living in Ann Arbor as well.
December 30th, 2014 at 1:52 PM ^
If Michigan wins the national championship, that will likely also mean winning the B1G, so that's $1.175 mil. Nice bonus, but I think it's reasonable.
December 30th, 2014 at 1:48 PM ^
is basically Hackett's solemn word that JH will be well taken care of. He will almost certainly end up close to the $8M / year (he'll already be over $6M base salary in the last two years of the contract). Spreading $10M over the final six years shouldn't be too hard.
Hackett went a little corporate with his "market factors" comment, but he's just being honest and pragmatic about how they'll need to approach it.
December 30th, 2014 at 1:46 PM ^
December 30th, 2014 at 1:47 PM ^
huh? I'm cool with that.
December 30th, 2014 at 2:03 PM ^
The removal of the interim tag was clearly implied when he said "Michigan Head Coach Jim Harbaugh."
December 30th, 2014 at 1:47 PM ^
December 30th, 2014 at 1:51 PM ^
December 30th, 2014 at 2:28 PM ^
I think as long as he keeps winning and loving the job he'll stay here until he retires. His parents are going to be near and he has young kids.
Why move every 2-6 years chasing a SB ring when you can have stability for your family in Ann Arbor? Especially if Michigan keeps his salary competitive with what he could make in the NFL.
December 30th, 2014 at 2:45 PM ^
People like Harbaugh tend to be crazily driven - if he feels like he's accomplished what there is to accomplish here, he may feel the need to tackle new challenges (i.e. back to the NFL.) Personally I wouldn't mind that happening since it'll probably only happen on the back of 2 - 3 national championships.
December 30th, 2014 at 4:43 PM ^
December 30th, 2014 at 2:30 PM ^
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December 30th, 2014 at 4:41 PM ^
December 30th, 2014 at 1:56 PM ^
Harbaugh said he sees himself as a constructor of houses and now its time to build a house he can live in.
December 30th, 2014 at 1:57 PM ^
December 30th, 2014 at 4:40 PM ^
December 30th, 2014 at 2:00 PM ^
Let me fix it for ya:
But, that is only possible if when he qualifies for every maximum incentive (coach of the year, winning national championship, etc.).
December 30th, 2014 at 2:20 PM ^
He's not at Michigan for the money. If that's not immediately apparent, it will be over the next few years.
It's clear from the presser that JH loves Michigan, relishes the opportunity, and wants to raise his kids in a stable environment. Remember, he moved around a lot as a kid. I'll bet he doesn't want the constant uprooting of an NFL coaching career.
What better place than Ann Arbor to do that?
And in terms of stability, they will never want or need to fire him. If he were to leave, it will be on his terms.
December 30th, 2014 at 2:47 PM ^
It appears that should Michigan win the NC the following bonuses will be earned:
Big Ten Championship $250,000 - plays in the four team playoff - $300,000 - Wins the NC $500,000. $1,050,000 in post season play incentives.
The $300K for making the playoffs and the $500K for the national championship are independent payment despite one must make the playoffs to play for the NC.
December 30th, 2014 at 2:59 PM ^
Buyout?