Arizona State coach Kenny Dillingham has signed a new five-year contract that will average nearly $7.5 million over the course of the deal, sources told ESPN on Saturday.
The deal prioritized resources for the staff, as the salary pool increases to $11 million, which puts it near the top of the Big 12.
The extension takes Dillingham out of the conversation for the Michigan job. He had been in the top group of candidates considered for it.
The deal remains for five years, as longer ones aren't allowed by Arizona state law, but there are incentives to extend the contract up to 10 years. The deal is pending board approval.
Dillingham signed a new deal a year ago that made him the second-highest-paid coach in the Big 12 in 2025. While there are increases in salary, the heart of this new deal was resources for the program.
"We have the perfect coach for ASU," a school source said. "We want to give him the tools to do his job the best way possible. That's giving him resources to put into the staff and program and giving him longevity."
The deal shows how Arizona State has prioritized football in recent years, as it won the Big 12 last season and reached the College Football Playoff for the first time in school history. It marked the first time the Sun Devils won a conference title outright since 1996.
It is also significant for athletic director Graham Rossini, who made it clear this week that retaining Dillingham was the top priority.
As the Michigan job lingered in the wake of Sherrone Moore's firing, Dillingham got emotional talking about Arizona State. He is a graduate who long called the school his dream job and said on Dec. 13, "I love this place."
He added: "That doesn't change how I feel about here. That doesn't change that my sister's my neighbor. That doesn't change that my parents live three doors down. ... [Michigan] is one of the best jobs in America, it's an unbelievable brand, an iconic brand, so a great opportunity for somebody."
Arizona State is 22-16 under Dillingham, including a 19-7 record over the past two seasons. The Sun Devils play Duke in the Tony the Tiger Sun Bowl on Dec. 31.