Jim Harbaughs Michigan contract almost fully guaranteed Mark Snyder, USA TODAY Sports 2:46 p.m. EST January 23, 2015 Football coach Jim Harbaughs seven-year contract with Michigan, obtained by the Detroit Free Press on Friday, could be worth significantly more than the $5.7 million annual average and is almost fully guaranteed. Perhaps of most interest to Michigan fans is Harbaughs buyout. If Harbaugh were to leave early to, say, go back to the NFL, he would be responsible for the pro-rated amount of his signing bonus ($2 million). So if he were to leave after three years, he would owe four-sevenths of the $2 million ($1.14 million). Another important part to Harbaugh is the $4 million-$5 million for his nine-assistant coaching pool, making Michigan competitive on a pay scale with the nations top teams. Harbaughs base salary starts at $500,000 per year but he also receives $4.5 million in additional compensation. Both amounts are scheduled to increase by 10% after Year 3. Those new amounts are scheduled to be increased by another 10% after Year 5. However, the contract also says that after Year 5, there will be an evaluation of Harbaughs performance and a review of his compensation compared to that of his peers. If Harbaugh is compensated less than his fair market value, the parties agree to negotiate an adjust to bring Harbaugh up to fair market value. If such an increase would be greater than the scheduled 10% increase, then the market-value adjustment would take the place of the scheduled one. Harbaugh will make a minimum of $40.1 million over the seven years, however, after next season a deferred compensation package will be determined and figures to add millions more to the contract. If Harbaugh is fired without cause (e.g. legal or NCAA trouble), Michigan would owe him his base salary and additional compensation at the time of termination for the remainder of the contract term. But he would be obligated to make reasonable efforts to get another job, and his income from that employment would offset any amount Michigan otherwise would owe him. His incentives range from $500,000 for winning the national title to $125,000 for appearing the Big Ten title game. He has an academic focus as well, with an APR of 960 or higher getting him a bonus up to $150,000 each year, at the athletic directors discretion. Mark Snyder covers the Wolverines for the Detroit Free Press. Contributing: Steve Berkowitz of USA TODAY Sports
Posted on: Fri, 23 Jan 2015 20:44:51 +0000
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