Jim Harbaugh earns $500,000 bonus for Michigan’s defeat of Ohio State

Even though Michigan football coach Jim Harbaugh was serving the third game of a three-game suspension Saturday, he will get a $500,000 bonus for the Wolverines defeating Ohio State 30-24 for the Big Ten Conference East Division title and a place in the conference championship game, his contract with the school shows.

The Big Ten suspended Harbaugh for the remainder of the regular season on Nov. 10 for his role in the program’s sign-stealing scandal.

The conference found Michigan “in violation of the Big Ten Sportsmanship Policy for conducting an impermissible, in-person scouting operation over multiple years, resulting in an unfair competitive advantage that compromised the integrity of competition.”

In addition to Saturday’s, Harbaugh was not allowed to attend Michigan’s games at Penn State and at Maryland. But he was able to attend practices and be involved in preparations.

He can return to the sideline for the conference title game next Saturday, when the No. 3-ranked Wolverines (12-0, 9-0 Big Ten) will play Iowa (10-2, 7-2) in Indianapolis. If Michigan wins that game, Harbaugh will be set to receive another $1.5 million in bonuses — $1 million for winning the Big Ten championship and $500,000 for the team all but assuredly getting a spot in the College Football Playoff semifinals.

Harbaugh’s contract with Michigan says that if the team reaches certain performance goals and Harbaugh “remains employed as head coach at the time of the applicable game,” he gets the prescribed bonus.

The agreement also says Harbaugh “will have earned and fully vested in any of the performance payments … at the time that the relevant game is played”.

The contract does not include any language about Harbaugh having to actually be on the sideline for a game in which the team reaches an achievement that results in a bonus.

In response to an inquiry earlier this week from USA TODAY Sports about Harbaugh’s bonuses, Michigan athletics spokesman Kurt Svoboda said via email: “We plan on honoring the terms of the contract.”

Some schools’ contracts with their head coach require the coach to actually coach the team in a game that results in a bonus – particularly when it comes to conference championship games and bowl games. For example, Houston’s agreement with Dana Holgorsen specifically says that for him to receive bonuses for the team’s participation in a conference championship game or in a bowl game, he must coach the team in the game.

Harbaugh’s agreement with Michigan states that if the school fires him without cause, it would have to pay him a prescribed buyout, but that: “In no case shall the University be liable for the loss of any base salary, additional compensation, bonus payments …”

However, if Harbaugh was fired for cause, he would be “paid any Annual Base Salary and Additional Compensation accrued but unpaid (and any performance bonuses earned but unpaid) prior to termination.”

If Harbaugh terminates the deal, all payments cease upon termination “[e]xcept for payment of any Base Compensation, Additional Compensation, Team Performance Bonuses earned, but unpaid, as of the effective date of termination”.