Michigan interim athletic director Jim Hackett said Tuesday during Jim Harbaugh's introductory press conference that Harbaugh signed a seven-year deal worth $5 million per year, which is the same salary he earned with the San Francisco 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 a contract worth $8 million annually.
While his salary will be $5 million, there will be incentives, and the total package still could be around $8 million annually.