Jim Harbaugh has signed a contract extension to remain Michigan‘s coach, he told 247 Sports on Friday.
A source confirmed to ESPN that it is a five-year extension that includes a lower base salary and many performance incentives. Harbaugh had one year left on his initial contract at Michigan, which paid the coach slightly over $8 million in 2020.
Michigan and Harbaugh began discussing a new contract after the team’s regular season ended in November. Harbaugh spent much of the past few weeks vacationing in California but returned to Ann Arbor this week, a source said.
The Wolverines finished the 2020 season at 2-4, canceling their final three games because of COVID-19 concerns within the program.
Harbaugh, a former star quarterback at Michigan, is 49-22 in six seasons at the school and 34-16 in Big Ten play but is coming off by far his worst season at his alma mater. Michigan won 10 games and finished in the top 15 in three of his first four seasons but has yet to defeat rival Ohio State and has dropped four straight bowl games.
Michigan fired defensive coordinator Don Brown last month, and six other assistants have contracts that expire Sunday.
ESPN’s Dan Murphy contributed to this report.