Michigan athletic director Warde Manuel says Jim Harbaugh "is worth every penny that he makes." The deal insures that Harbaugh's heirs, should he die while Michigan is paying for the policy, will get no less than 150 percent of the premium that has been paid, increasing the payout by $6 million in 2016 and $3 million each successive year. The 150 percent clause protects the university as well. Harbaugh is allowed to borrow against the policy while he is living but has to keep at least 150 percent of the premium value untouched, which gives the school a cushion to make sure it gets its investment back. Harbaugh's original seven-year contract with the school allowed for the parties to sit down and discuss additional compensation after the coach finished his first season with the Wolverines. Those discussions started under interim athletic director Jim Hackett in December. Hackett, the former CEO of Steelcase furniture, laid the groundwork for this deal, which a source at Michigan explained is a more commonplace form of deferred compensation in the corporate world. New athletic director Warde Manuel had said in March that the amendment to Harbaugh's contract was nearing completion. The two sides officially came to an agreement June 3. If Harbaugh decides to leave the school or is fired, the university will stop providing the loans for insurance premium payments. If the insurance policy is canceled for any reason after that point, Harbaugh will need to pay back the money Michigan loaned him.
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