Report: Jim Harbaugh, Michigan Were in Contract Talks Before Sign-Stealing Probe

The University of Michigan and Jim Harbaugh were finalizing a contract extension that would have made him the Big Ten's highest-paid coach, but those talks are now "on hold" in light of the NCAA's investigation into sign-stealing allegations against the football program.

Nicole Auerbach, Austin Meek, David Ubben and Chris Vannini of The Athletic reported the news on Friday.

"Prior to this week's revelations, the school had been in the process of finalizing a massive contract extension for Harbaugh that would make him the highest-paid coach in the Big Ten, according to a source briefed on the negotiations. The hope had been to reach the finish line on the negotiations by the end of the month, as Michigan has an idle week the last weekend of October. That plan will be put on hold."

Dan Wetzel and Ross Dellenger of Yahoo Sports first broke the news of the sign-stealing allegations:

"Teams are normally provided extensive video footage to scout opponents. At issue, according to sources, is whether Michigan used unnamed individuals to attend games of both scheduled opponents and possible College Football Playoff opponents in an effort to gather information on the signs they use to call both offensive and defensive plays.

"Sign stealing is not technically prohibited and has a long and colorful history as part of the game. Scouting opponents in person has been prohibited since 1994. Whether the NCAA believes Michigan was using staffers or others who may be loyal to the program is unknown. So, too, is whether information was detailed via video or some other means or if head coach Jim Harbaugh is involved."

A source told The Athletic that the allegations state Michigan has been using a "vast network" for sign-stealing.

NCAA Bylaw 11.6.1 (page 29) notably states that "Off-campus, in-person scouting of future opponents (in the same season) is prohibited, except as provided in Bylaws 11.6.1.1 and 11.6.1.2."

As The Athletic also reported, an institution isn't allowed to be "employing or paying the expenses of someone else, including professional scouting services, to scout the opponent."

The NCAA also prohibits "any attempt to record, either through audio or video means, any signals given by an opposing player, coach or other team personnel."

Harbaugh, who is earning $7.3 million per season on a contract that runs through 2026, agreed to fully cooperate with the investigation and has also since denied the allegations:

The news comes amid a tremendous season for Michigan, which has seen the team go 7-0 and earn the No. 2 spot in the Associated Press poll. The Wolverines defense notably ranks No. 1 in the FBS with just 6.7 points allowed per game.

Harbaugh and the Wolverines will now head to East Lansing to face the Michigan State Spartans on Saturday at 7:30 p.m. ET.