Report: Jim Harbaugh nearing 5-year contract extension with Michigan

Michigan coach Jim Harbaugh is reportedly nearing a 5-year contract extension with the Wolverines.

That’s according to multiple reports, including The Athletic’s Nick Baumgardner.

Source tells The Athletic Michigan and Jim Harbaugh are close to finalizing a five-year deal — expected base salary is $4 million. With incentives, he could get it back to $8 million. Buyout is expected to be low.

Harbaugh hasn't signed. Is expected to soon.

— Nick Baumgardner (@nickbaumgardner) January 8, 2021

Baumgardner adds that Harbaugh’s base salary is expected to be just $4 million, which is a steep decline from where it was in 2020. However, Harbaugh could be paid as much as $8 million if he hits certain incentives.

Harbaugh’s buyout is also expected to be low. The Wolverines went 2-4 this season, so it makes sense for this contract to be easy for either side to get out of if things go badly again in 2021.

Harbaugh is still coaching on his original seven-year contract that he signed when he first took the Michigan job before the 2015 season. If he does not sign this extension, he’d be coaching on the last year of that deal in 2021.

The former San Fransisco 49ers coach has reportedly been searching for an NFL job, but apparently has been unsuccessful.

Harbaugh is 49-22 overall as Michigan’s head coach, including three 10-win seasons.