Details of Harbaugh's contract: private plane for all recruiting and other tid-bits

per ESPN:

The contract calls for a 10 percent raise to $5.5 million in January 2018 and another 10 percent raise to $6.04 million in January 2020, pending the market-value review.

The total value of the deal is $38,069,000.

If Harbaugh leaves Michigan for other employment, he must pay the university the remaining pro-rated amount of his $2 million signing bonus. For instance, if he takes an NFL job after four years, he will owe the school $857,142.

Other terms of the contract provide Harbaugh with:

The joint responsibility with the athletic director to schedule games. The final decision rests with the AD.
The use of two automobiles.
$4,000 of apparel annually from Michigan’s official outfitter (currently adidas).
Use of a private viewing box for his family and guests at Michigan Stadium and 16 additional tickets to home games.
Private air travel for all recruiting purposes and up to 25 hours of additional flight time for personal travel. First-class commercial airfare for all other football-related travel.


The contract allows for a salary pool of $4-5 million for his assistant coaches, with 10 percent raises after the third and fifth years of Harbaugh’s deal.

Harbaugh’s incentives include payment of $125,000 for winning the Big Ten East Division, $250,000 for a conference title, $200,000 for a New Year’s Six bowl appearance, $300,000 for a berth in the College Football Playoff and $500,000 for a national championship.

Additionally, he will receive $50,000 if named Big Ten coach of the year, $75,000 as national coach of the year and up to $150,000 for the academic performance of his players.

http://espn.go.com/blog/bigten/post/_/id/114812/harbaugh-deal-includes-scheduled-raises

Go Gophers!!

A few things to point out on this contract... ESPN is off on some of what they wrote and excluded some pertinent information. Just a sampling:

- $5.0MM x 1.10^2 = $6.05MM vs. $6.04MM
- The Big Ten division champ & Big Ten overall champ bonuses are non-cumulative
- "f he takes an NFL job after four years, he will owe the school $857,142." -- this is false. Any pro rata payment of the $2MM signing bonus is under a 4 year period, not the full contract term. After four years, he would owe the school $0.
- Private air travel for all recruiting purposes is not accurate - it will be provided as "reasonable and necessary." No doubt Michigan intends to support the coach, but the language here is important.
- There aren't 10% raises for assistants after years 3 and 5 - to be clear, the compensation fund that is reserved for assistant coaches will be increased.
- The total value of the deal is horribly misstated by ESPN. Just awful.

EXTREMELY IMPORTANT and not mentioned in the article:
1) Deferred comp has not been finalized. Within 30 days of next season wrapping up, the amount will be determined. This amount could be enormous.
2) Termination provisions. Whereas some contracts require a school to pay a buyout amount and then it's a done deal (for example, Tubby, Pam,... Jerry would as well... get a lump sum payout and they are on their way), Harbaugh's does not. Michigan can terminate him at anytime. If they do, they continue to pay him on a normal pay schedule like they would if he was still employed by them.

The key is this: Harbaugh is required to attempt to find other employment right after he's canned. Michigan can demand to see evidence of Harbaugh's efforts to find other work. Once he finds other employment, Michigan essentially takes anything he makes at the new job each month and subtracts it from what they pay him. (If he makes the same or more, they pay nada.)