Michigan interim athletic director Jim Hackett said Tuesday during Harbaugh's introductory press conference that Harbaugh signed a seven-year deal worth $5 million per year -- the same salary he made with the 49ers -- with deferred compensation. Hackett also said Harbaugh received a $2 million signing bonus and "insisted that he not be the highest-paid coach in college football, or even the Big Ten."
"A year from now, I will review the football program's progress and the university will determine an appropriate deferred compensation arrangement, which I have to take into account market conditions at that time."
Reports broke earlier this month that Michigan was offering Harbaugh upward of $8 million per season. And while his salary will be $5 million, there will be incentives, and the total package still could be around $8 million annually.
At the same time, a $5 million salary is a hefty figure, and USA Today research shows that Harbaugh will be in the top five nationally in salary. Alabama's Nick Saban makes $6.9 million per season and Oklahoma's Bob Stoops is at $5.05 annually. Texas' Charlie Strong and Texas A&M's Kevin Sumlin make $5 million each, with Ohio State's Urban Meyer around $4.5 million annually.
Michigan State's Mark Dantonio made $5.6 million this year, but a big part of that was a one-time retention bonus.