re: 2016 Coaching Salary list is out

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Jim Harbaugh's compensation is in the form of an annual life insurance premium payment by the university.

How it works is Harbaugh owns this insurance policy.

If he is coaching the team on Dec. 6 of each year from 2016 through 2021, Michigan makes the $2 million annual premium payment to the insurance company.

Then, because Harbaugh owns the policy, he can take withdrawals or loans from the policy.

The university will get its money back, without interest, when Harbaugh dies. There are other scenarios under which U-M would get its money back: If the policy is surrendered or cancelled prior to Harbaugh's death or the money would come from Harbaugh if he exercises his option to terminate the entire insurance arrangement in the event that his employment contract is terminated.

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