Sherrone Moore contract at Michigan: Years, salary, incentives disclosed

Sherrone Moore, named the next head football coach at Michigan on Friday, has signed a five-year contract that begins at $5.5 million per year.
According to terms of the deal, issued to MLive via an athletic department spokesman, Moore will receive a 2 percent raise every year through the lifetime of the contract and is entitled to an annual $500,000 retention bonus for staying at Michigan.
The contract runs through Jan. 31, 2029.
Of the returning (or new) Big Ten coaches, Moore is in the bottom half of the conference in pay according to the USA Today database of coaching salaries. Nebraska’s Matt Rhule and Maryland’s Mike Locksley, who each were set to collect $5.5 million in 2023, ranked ninth and 10th among league coaches.
But like his predecessor, the 37-year-old Moore is also eligible for lucrative bonuses for Michigan’s success on the field and in the classroom. A return to the Big Ten title game would net the new head coach a $250,000 bonus, and a conference title an additional $500,000.
Here are the terms of Sherrone Moore’s new five-year contract with #Michigan. pic.twitter.com/IvsyjUybqQ
— Aaron McMann | MLive.com (@AaronMcMann) January 27, 2024
If Michigan can return to the College Football Playoff, Moore would receive $200,000 for a first-round appearance or bye, an additional $300,000 for reaching the quarterfinals, an additional $500,000 for reaching the semifinals, $750,000 for making the championship and an additional $1 million for winning a national title.
In total, Moore is eligible for $3.5 million in possible on-field bonus payments. He is also eligible for a bonus of up to $150,000 per year if Michigan can achieve a team-wide NCAA academic progress rate (APR) score of 960 or higher.
If Michigan chooses to fire Moore without cause before the end of the contract, the school will owe him 75 percent of the remaining pay on his deal. As for the buyout on his end, Moore will owe Michigan $5 million if he leaves in 2024, $4 million in 2025, $3 million in 2026, $2 million in 2027 and $1 million in 2028.
Moore — whose only head-coaching experience was four games in an interim role — takes over for the departing Jim Harbaugh, who inked a five-year deal on Wednesday to become the next head coach of the NFL’s Los Angeles Chargers.
Harbaugh still had three years remaining on his five-year Michigan contract that guaranteed him more than $8 million per year. Performance bonuses pushed Harbaugh’s pay north of $10 million each of the past two seasons.
Before the promotion, Moore was set to make $1.2 million as Michigan’s offensive coordinator in 2024.