Michigan is going to be making some people angry in the world of college football after adding an addendum to Jim Harbaugh’s contract that will give the coach a raise to $9 million.
The Detroit Free Press says Michigan has found a creative way to increase Harbaugh’s pay to $9 million through a life insurance police. The addendum calls for Michigan to make one $2 million payment for the premium on June 3 and another $2 million payment if Harbaugh’s still the coach on Dec. 6 each year.
Harbaugh is the owner of the policy, which means he can take withdrawals on the money. That’s an extra $4 million in loans available to the coach each year, interest-free.
The paper explains how Michigan can get the money back:
The university will get its money back, without interest, when Harbaugh dies. There are other scenarios under which U-M would get its money back: If the policy is surrendered or cancelled prior to Harbaugh’s death or the money would come from Harbaugh if he exercises his option to terminate the entire insurance arrangement in the event that his employment contract is terminated.
As long as Harbaugh remains coach, he gets $5 million in compensation and has access to another $4 million via the life insurance policy.
