New Michigan basketball coach Juwan Howard will receive a maximum of $2.5 million in compensation in the fifth year of his five-year contract.
Terms of Howard’s contract, detailed in a memorandum of understanding, were obtained by The Detroit News on Thursday following a Freedom of Information Act request.
Howard’s compensation will begin at $2 million for 2019-20 and will increase to $2.1 million for 2020-21, to $2.2 million for 2021-22, to $2.4 million for 2022-23 and to $2.5 million for 2023-24 for a total of $11.2 million.
Michigan State's Tom Izzo had a total compensation package of $4,157,562 this year, according to USA Today. That ranks first in the Big Ten and third nationally.
There is a buyout provision in the contract that begins at $5 million the first year and decreases by $1 million annually in each of the next four years. That is what UM would pay Howard should he be terminated without cause.
If Howard leaves UM before the end of his contract for basketball-related employment, Howard would be responsible for paying UM a buyout equal to half of UM's buyout amount.
The memorandum of understanding was signed by Howard and UM athletic director Warde Manuel on May 22.
When Howard was formally introduced as Michigan's coach on May 30, Manuel said Howard's starting compensation would be $2 million. But other terms of his agreement were not revealed.
Additionally, Phil Martelli will be the highest-paid assistant on Howard’s staff with a base salary of $450,000, followed by Howard Eisley at $375,000 and Saddi Washington at $330,000.
According to the memorandums of understanding, all three contracts are two-year deals that went into effect last week and expire on April 30, 2021. The compensation for the three assistants is the same for Year 2 and they all have a third-year option that can be extended by Michigan.
Washington, 43, is entering his fourth season at Michigan and will receive a pay bump of $25,000 one year after being the highest-paid assistant. Martelli, 64, and Eisley, 46, are both entering their first year on Michigan's staff.
In total, Howard's staff will make a total of $1.115 million this season, which is up from the $880,000 former coach John Beilein's assistants made last season.