Staggering Contract Details of UNC's Malone Hire Revealed

On Monday, the North Carolina Tar Heels hired longtime NBA coach Michael Malone, providing themselves with a sense of direction after firing Hubert Davis two weeks ago.

Before landing the 54-year-old coach, the Tar Heels offered Arizona's Tommy Lloyd a lucrative contract that would have made him one of the two highest-paid coaches in the country. However, the 51-year-old head coach signed a five-year extension with the Wildcats. With Dusty May taking himself out of consideration, North Carolina was backed into a corner, especially with the transfer portal opening on Tuesday.

Mar 26, 2025; Denver, Colorado, USA; Denver Nuggets head coach Michael Malone in the second quarter against the Milwaukee Bucks at Ball Arena. Mandatory Credit: Isaiah J. Downing-Imagn Images | Isaiah J. Downing-Imagn Images

The program turned to Malone, and according to ESPN's Pete Thamel, he will be signing a massive deal to take his services to Chapel Hill.

Thamel's Report

Mar 24, 2025; Denver, Colorado, USA; Denver Nuggets head coach Michael Malone gestures in the third quarter against the Chicago Bulls at Ball Arena. Mandatory Credit: Isaiah J. Downing-Imagn Images | Isaiah J. Downing-Imagn Images

"Can confirm from ESPN sources that Michael Malone is set to average more than $8.3 million per year on his six-year deal," Thamel stated. "That will put him among the top-five highest in the sport, as Bill Self made $8.8 million this year."

Malone's Contract Breakdown

Apr 6, 2025; Denver, Colorado, USA; Denver Nuggets head coach Michael Malone during the second quarter against the Indiana Pacers at Ball Arena. Mandatory Credit: Ron Chenoy-Imagn Images | Ron Chenoy-Imagn Images

The veteran head coach will earn $8 million next season, $8.5 million for the following three seasons, and $9 million in the final year of his contract. Under the contract, there is $1.475 million in bonuses. For each season Malone is awarded the ACC Coach of the Year, he will earn $50,000. If the Tar Heels win the National Championship, Malone will earn $500,000.

Regarding the buyout clause, Malone has an $8 million buyout on March 31 of next year, which depletes to $6.5 million in 2028 and $5 million in 2029.

What This Means for North Carolina

Mar 9, 2025; Oklahoma City, Oklahoma, USA; Denver Nuggets head coach Michael Malone talks to guard Jamal Murray (27) during a break in the game against the Oklahoma City Thunder during the second quarter at Paycom Center. Mandatory Credit: Alonzo Adams-Imagn Images | Alonzo Adams-Imagn Images

While this is a massive contract for a coach with no college experience, it is well worth it for North Carolina, as Malone should be able to maximize the financial and roster advantages that the program possesses.

Additionally, considering who else was potentially available on the market, the Tar Heels' avenues were limited. Investing this much money on a head coach is a risk, but Malone is well worth the price. He led the Denver Nuggets to an NBA Championship in 2023, which was the first in franchise history.

Feb 6, 2025; Denver, Colorado, USA; Denver Nuggets head coach Michael Malone speaks to the media before a game against the Orlando Magic at Ball Arena. Mandatory Credit: Ron Chenoy-Imagn Images | Ron Chenoy-Imagn Images

The Tar Heels have eight NCAA Tournament wins over the last five years and have entered the tournament as a 1-seed only once during that span, which is simply not good enough. Malone should be able to elevate North Carolina back to relevance in short order.