Report: Jim Harbaugh finalizing contract extension at discount with Michigan

Jim Harbaugh had a down season for Michigan, and the Wolverines appear to be taking the opportunity to restructure the coach’s deal more favorably.

Harbaugh is finalizing a five-year contract extension with Michigan, according to The Athletic’s Nick Baumgardner. Baumgardner reports that the deal will be for a base salary of $4 million, with incentives that could get the coach back to $8 million. The buyout is expected to be low.

Source tells The Athletic Michigan and Jim Harbaugh are close to finalizing a five-year deal — expected base salary is $4 million. With incentives, he could get it back to $8 million. Buyout is expected to be low.

Harbaugh hasn't signed. Is expected to soon.

— Nick Baumgardner (@nickbaumgardner) January 8, 2021

Harbaugh was previously among the most highly-compensated coaches in college football. He was often targeted for not living up to his lofty salary. The negotiations seem to have put him at a level of compensation more in line with his recent performance.

According to The Detroit News, the contract includes: “incentives for winning the Big Ten East Division, a Big Ten championship, reaching the national playoffs and winning a national championship.”

Harbaugh’s current deal is set to expire after the 2021 season.