The Jim Harbaugh era has officially begun.
The University of Michigan introduced Harbaugh as the 20th coach in the school’s football history on Dec. 30.
Harbaugh, who came to a mutual agreement to separate from the San Francisco 49ers Dec. 28, accepted the position Dec. 29 and signed the contract before the introductory press conference.
NFL insider Adam Schefter originally reported the Wolverines had offered Harbaugh a contract for six years and upwards of $48 million.
The contract signed from Harbaugh is for seven years and $35 million, with a $2 million dollar signing bonus. It is the same yearly salary he earned coaching in San Francisco.
Harbaugh will also receive a 10 percent increase after years three and five of the contract.
“I really made a decision that was from the heart which I thought was best for myself and our family, and I’m very excited about it and very challenged by it,” Harbaugh said, after being asked about the ability to make more money staying in the NFL, rather than taking the Michigan job.
John U. Bacon first reported that Harbaugh did not want to be the highest paid coach in college football, so he could leave more money for his assistants to be paid.
The contract also has incentives for playing in and winning the Big Ten Championship game, playing in a bowl selected by the College Football Playoff selection committee, playing in the College Football Playoffs, and winning a national championship.
Harbaugh will receive $50,000 for Big Ten Coach of the Year, and $75,000 for the AP, Paul “Bear” Bryant, Sporting News, Walter Camp, Maxwell Football Club or ABC/ESPN Coach of the Year honors.
Following the 2015 season, there will be a review by the athletic director on the progress of the football program. The University of Michigan will determine an appropriate deferred compensation agreement.
Harbaugh will also receive incentives based on academic performance from his players. If the academic progress rate is 960 or higher, he can receive up to $150,000 per year.