Texas' Steve Sarkisian to Have $10.3M Annual Salary Under 4-Year Contract Extension

One month after the University of Texas announced head coach Steve Sarkisian agreed to a four-year contract extension, financial details about the deal have been released.

Per Chip Brown of 247Sports.com, citing the agenda of an upcoming University of Texas regents meeting, Sarkisian's annual salary under his new contract will be $10.3 million.

Sarkisian's original contract with the Longhorns that was approved in February 2021 guaranteed him a total of $34.2 million over six years, or $5.7 million per season.

Brown noted Sarkisian's $10.3 million average annual salary ranks third among all college football head coaches, behind only Clemson's Dabo Swinney ($10.9 million) and Georgia's Kirby Smart ($10.7 million).

The deal includes annual salary increases of $100,000, meaning it will max out at $10.9 million in the final season.

Brown also provided a breakdown of performance-based incentives Sarkisian can earn:

"Sarkisian's performance incentives will increase from a maximum of $825,000 to $1.85 million annually, including $300,000 for a conference championship; $1 million for reaching the College Football Playoff championship game; and $1.25 million for winning the national championship."

Sarkisian's four-year extension ties him to Texas through the 2030 campaign. His original deal was set to run through 2026.

The Longhorns hired Sarkisian after his two-year stint as Alabama's offensive coordinator. He also spent two years as the offensive coordinator for the Atlanta Falcons in 2017 and 2018 after Kyle Shanahan left to become head coach of the San Francisco 49ers.

Texas was Sarkisian's first stint as a head coach since he was fired by USC midway through the 2015 season. He had a 46-35 record as a head coach in stints at Washington from 2009 to '13 and USC from 2014 to '15.

Sarkisian has turned Texas back into a national powerhouse in three seasons. They have improved their win total every year under his watch, going from 5-7 in 2021 to 8-5 in 2022 to 12-12 last season.

The Longhorns won the Big 12 championship in 2023 for the first time in 14 years. They made their first appearance in the College Football Playoff, losing 37-31 to Washington in the semifinal.

Optimism is very high for Texas going into next season as the program moves to the SEC. It will have to navigate a difficult regular-season schedule, which includes games against Michigan, Oklahoma and Georgia, if it wants to get back to the playoff.

Sarkisian's resume with the Longhorns so far suggests he can keep them in contention for a national title. His new salary reflects a belief from the program they will maintain their 2023 level of success going forward.