Jim Harbaugh was introduced as Michigan's head football coach on Tuesday, ending weeks of speculation and officially kicking off an exciting new chapter for Big Ten football.
Harbaugh will be paid $5 million a year, plus incentives. That figure is much lower than the reported $8 million annual salary and matches the deal Harbaugh had with the San Francisco 49ers. Interim athletic director Jim Hackett said Tuesday that the program will be reevaluated after one year and Michigan, at that time, will "determine an appropriate deferred compensation arrangement."
Even at $5 million per year, he is one of the five highest-paid coaches in college football. With all of the incentives and deferred compensation in the deal, Harbaugh could end up making close to that reported $8 million figure reported before the hire.
According to a fact sheet released by the Michigan, the seven-year deal includes 10 percent increases in compensation after years three and five, and incentives will be based on performance related to Big Ten championships, bowl appearances, coaching awards and academics.
"Throughout my life I have dreamed of coaching at the University of Michigan," Harbaugh said. "Now I have the honor to live it.
"Across every discipline on campus, the University of Michigan stands for excellence. I feel privileged to take a leadership position at one of the finest universities in the world. I truly believe it is time to ask what we can do for our great university, and how I can be a great teammate. I commit to do my part to see to it the Michigan football program upholds its tradition of excellence."
The press conference was every bit of the family affair you would expect from Harbaugh's return to Ann Arbor. He used the word "homecoming" in his opening remarks, and looked out on a crowd that included Lloyd Carr, Gary Moeller and even Bo Schembechler's wife. Harbaugh's parents, Jack and Jackie, were in attendance as well, along with several other former UM players.
Harbaugh plans to attend Michigan's Big Ten basketball opener against Illinois on Tuesday night.
More details on the incentives in Harbaugh's contract:
• Big Ten Championship Game appearance: $125,000
• Big Ten championship: $250,000
• Selected for New Years Six Bowl: $200,000 OR Selected for College Football Playoff: $300,000
• National championship: $500,000
• Big Ten Coach of the Year: $50,000
• National Coach of the Year: $75,000
• Academic Progress Rate (APR) of 960 or higher: up to $150,000
• $2 million signing bonus
