Contracts for Coaches -- Jim Harbaugh example

[El Paso Eagle]

Without getting into the he's good or he sucks debate, I find it interesting in the way they have set up his extension

Salary has been slashed, but he can still make it up with incentives. Now if they are BS gimmies then it does no good, but if they are actual tangible targets it could be interesting. Would like to see more contracts, both coaches and players, where the base is lower and performance increases the payouts.

 

[Pseudo Nym]

Taking a look at it, going from this link: https://www.espn.com/college-football/story/_/id/30675288/michigan-coach-jim-harbaugh-reach-contract-extension

Harbaugh's new contract will pay him a base salary of $4 million in 2021, which will increase to $4.426 million in 2025.

He can earn a maximum bonus of $3.475 million in each year of the contract, including:

• $1 million bonuses for winning the Big Ten championship and CFP national championship
   
• $500,000 bonuses for winning the Big Ten East Division and reaching the College Football Playoff. 

I laid it out on spreadsheet (it's easier for me to interpret that way lol) and I think it does two things:

1) UM is saying, we're going to give you a few more years to figure it out but we're not gonna pay you unless you win Championships or contend for them

2) Harbaugh's agent did him a solid by staying firm with the buyouts, really forcing UM's hands to keep him for the next three years (this is my opinion only: I wouldn't spend the money to fire him until 2024 with the $6mil buyout)

To me the AD here is kind of hedging his bets, perhaps having "measured faith" is a better way to put it.  Either way, the headlines will read "Harbaugh Takes a Pay Cut" which is good publicity all-round and buys himself a few years at his dream job to turn it around while the AD also saves some face by not "rewarding mediocrity" - I say that as I doubt there's many coaches that would get a contract like this after his most recent production, expectations, etc but won't go off track in that way.

I'd say he's getting the "Alumni Exception" with this contract along with the question that should always be asked before firing coaches at this level: "If not him, then who?" - I think UM looked around and didn't see anyone on the market that they liked which makes this a good deal in their eyes at the time. 

If nothing else, they have a plan in place through 2025!