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, taking him out of the conversation to be the Michigan coach.
Dillingham said Saturday that he "never got offered" the Michigan job, adding that his agent handles communication and that "it never got to that point."
"Michigan's an unbelievable job with unlimited resources, with people who will do whatever they can to make it successful, who want to see it succeed," Dillingham said. "Somebody's going to get an unbelievable opportunity ... to take over one of the best programs in the country, with one of the best rosters in the country."
Dillingham was in the top group of candidates considered to be the next Wolverines coach.
The new contract prioritizes resources for the staff, as the salary pool increases to $11 million, which puts it near the top of the Big 12.
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.
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.
Dillingham said Saturday that Arizona State needs a super booster/donor to truly accelerate the program.
"We need to find one of these really rich people in this city to step up and stroke a check, and I'll do everything I can to make you the most famous person in the city," Dillingham said. "We live in Phoenix, Arizona. You're telling me there's not one person who could stroke a $20 million check right now? There is somebody out here who can. ... Somebody can step up and completely take this place from the direction it's going to, 'Holy cow.' And it's right here in this city."
Arizona State is 22-16 under Dillingham, including 19-7 over the past two seasons. The Sun Devils play Duke in the Tony the Tiger Sun Bowl on Dec. 31.
ESPN's Adam Rittenberg contributed to this report.