Nick Saban's new contract, which includes an extension and pay raise, was officially approved by Alabama's Board of Trustees on Tuesday.
According to Michael Casagrande, of AL.com, the motion was passed unanimously to bump Saban's compensation to $6.5 million per year with a $400,000 completion bonus. The school confirmed that the contract has also been extended from 2020 to Jan. 31, 2022.
"We are honored by the commitment the University of Alabama has made to us with this new contract." Saban said via a school release. "It is certainly a mutual agreement in terms of our commitment to the University of Alabama. We will continue to work hard to keep our football program among the nation's elite. My passion has always been to develop young men to their full potential as student-athletes. We've had great success in that area at Alabama and I'm appreciative of all the support and the resources we receive from the administration in order to make that happen."
News of Saban's extension is not new. Colleague Jeremy Fowler reported on the agreement in Dec. 2013 during the height of the Saban-to-Texas rumors. This announcement confirms the deal, along with the terms, but also reveals the contract details for new offensive coordinator Lane Kiffin.
Lane Kiffin's contract at Alabama is for three years. He will make $680, 000 the first two years, $714 the last.— Alex Scarborough (@AlexS_ESPN) June 3, 2014
As Fowler noted Tuesday, those numbers aren't Kiffin's No. 1 financial concern at the moment.
#Bama will approve Lane Kiffin's deal today, but whatever's approved prob doesn't matter to Lane -- won't offset whatever USC owes him.— Jeremy Fowler (@JFowlerCBS) June 3, 2014
Even with a bump from $5.4 million to $6.5 million per year, many have estimated that Saban's compensation does not match his financial value to Alabama. Forbes made that argument in May 2013, and the Alabama's leadership has also weighed in on Saban's value to the university.
"Nick Saban is best financial investment this university has ever made. We have made an investment that's been returned many fold," Alabama chancellor Dr. Robert Witt told 60 Minutes in November 2013.
Since arriving in Tuscaloosa in 2007, Saban has compiled a 74-15 record with three BCS national championships. He is one just three coaches in the poll era to win three titles in four years, joining Frank Leahy of Notre Dame and Tom Osborne of Nebraska.