Michigan Football: Harbaugh Gets A Bump

Jim Harbaugh has received an upgrade in compensation following a 10-win initial season of guiding the Wolverines, several major media outlets have reported.

In June, Harbaugh and Michigan agreed to an additional $2 million per year, on top of his salary of $5 million annually, but the payment isn’t in the form of cash.

It’s a deferred compensation via a life insurance policy. The University is to pay $2 million yearly through 2021, although two such payments are reported to be scheduled for the current year – in June and on Dec. 6.

Harbaugh owns the policy, and after the payments through 2021, can take withdrawals or loans from it. The University receives its money back, sans interest, upon Harbaugh’s death.

The policy can also be surrendered or cancelled prior to that time.

The University gets back its original investment, while Harbaugh’s designated beneficiaries receive any amount exceeding that total.

Here is ESPN’s breakdown.