Jim Harbaugh’s first press conference as Michigan football coach was filled with laughter and clapping from the players, coaches and family looking on.

But the room of hundreds went quiet when Harbaugh was asked if he was inheriting a turnaround program.

“This is Michigan,” Harbaugh said. “There are no turnarounds at Michigan. This is greatness.”

He added in his statement: “Throughout my life I have dreamed of coaching at the University of Michigan. Now I have the honor to live it.”

The Michigan Athletic Department announced the hiring of the former San Francisco 49ers coach on Tuesday afternoon, the 20th coach in program history. Harbaugh agreed to a seven-year contract paying a base salary of $5 million per year.

Hoarse-voiced from a gatorade bath in his NFL-finale Sunday, he handled his first press conference nearly an hour after addressing his team for the first time. Harbaugh didn’t give a timeline for when he planned to name a coaching staff.

A former quarterback under Bo Schembechler, Harbaugh was an All-American and Heisman Trophy finalist, but he’s been part of the Wolverines’ program since he was nine years old. Harbaugh’s father, Jack, was the defensive backs coach at Michigan while Jim was growing up.

It was then, Harbaugh said, that he first dreamed of coaching at Michigan.

“When I was nine to 10 years old, there was a time when I was sitting in coach Schembechler’s office. I was sitting in his chair; I had my feet up on his desk,” Harbaugh recalled. “He walked in and said, ‘How ya doin’, Jim?’ And I said, ‘I’m doing great Bo, how you doin’? He said, ‘Whattaya doin?’ and I said, ‘I’m sitting in your chair, coach!’ … There’s just been times in my life where I’ve thought about it, dreamed about it, and now it’s time to live it.”

In addition to his $5 million base salary, Harbaugh’s contract includes incentives for playing in ($125,000) or winning ($250,000) the Big Ten Championship Game, a $50,000 bonus if he is Big Ten Coach of the Year and a $150,000 bonus for each year the team’s Academic Progress Rate is 960 or higher. He can also earn $300,000 for playing the College Football Playoff or $500,000 for winning the national championship.

His contract includes a $2 million signing bonus.

Michigan marks Harbaugh’s fourth head coaching job in the last 10 years, most recently in San Francisco, where his base salary is roughly the same as it will be with the Wolverines.

“I kind of think of myself as a construction guy,” Harbaugh said. “You build this home, and hopefully it’s a great cathedral, and then afterwards they tell you, ‘Go build another one.’ And I feel like that again. … But I’d really like to live in one permanently. And that’s what I’m really hopeful for here.”

Harbaugh insisted his decision to take the Michigan job had little to do with his salary or financial considerations.

“I really made a decision from the heart, which I thought was best for myself and my family,” Harbaugh said. “I’m very excited by it and very challenged by it.”

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