Hoke signed a six-year contract with an average annual compensation of $3.25 million, starting at $2 million this season and including bonuses for staying with the program.
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Hoke will earn a base salary of $300,000 per year, with additional compensation of $1.7 million this season that includes television and other media appearances and a shoe and apparel deal, among other things. He could also earn a $75,000 bonus this season for reaching a bowl game, an amount that could reach $125,000 if Michigan plays in the Capital One Bowl or Outback Bowl.
Hoke would earn a $300,000 bonus if U-M makes the inaugural Big Ten championship game or $500,000 if the Wolverines win it.
Hoke will also earn a $500,000 bonus each year he remains with the program, but he wouldn't receive the bonuses from the first two years until he completed his third season.
Buyouts include an $8 million settlement if he were removed after this year, $6 million in year two, $4 million in year three, $3 million in the fourth year and then $2 million in year five and six.
Michigan also agreed to pay the $1 million buyout clause in Hoke's San Diego State deal.
"The contract was handled by my agent and the University," Hoke said in a release. "My focus has been on the football program and will continue to be on making this program the best in America. I couldn't tell you what's in the contract other than my signature.
"The University offered Laura and I an opportunity to coach at Michigan, and that's been my dream. Nothing will change my focus."
Classic Coach Hoke quote.