Sources: UNC Head Coach Michael Malone's Contract Details Revealed

The University of North Carolina and Michael Malone have finalized a six-year, $50 million deal that will pay the NBA Champion head coach an average of $8.3 million dollars per year, according to a source. That will make Malone the second-highest paid college basketball coach in the country behind Kansas’ Bill Self. Malone’s salary for the 2026-27 basketball season will be $7.5 million.

The contract was approved by UNC’s Board of Trustees during an emergency meeting at 2 p.m. on Tuesday.

The longtime NBA head coach was in consideration for higher-paying NBA jobs – after making $12 million with the Denver Nuggets – but chose to take less money to coach arguably the top program in college basketball, according to a source. There was no buyout involved with Malone’s negotiation, which would not have been the case with other college coaching candidates that UNC was considering.

UNC released Malone’s term sheet on Tuesday evening. He will make $8 million in 2027-28, $8.5 million in the three years from 2028-29 through 2030-21 and $9 million in final year of the deal in 2031-32. His potential cumulative bonuses reach $1.475 million, beginning with $50,000 for winning ACC Coach of the Year and extending to $500,000 for winning the national championship. The budget considerations include a commitment for no less of $6.75 million for revenue share and a salary pool of up to $4 million for all assistant coaches and full-time support staff.

Malone has an $8 million buyout through March 31, 2027, which drops to $6.5 million for 2027-28 and $5 million for 2028-29. UNC’s buyout responsibility, were it to fire Malone without cause, would be 80% of total remaining salary.

Sources confirm that the Carolina basketball family, including Hall of Fame head coach Roy Williams, are firmly behind this hire and excited about the future of UNC basketball.

Two years after a fractured football coaching search that led to the hiring of eight-time Super Bowl champion Bill Belichick, this search was more uniform in its approach as athletic director Bubba Cunningham and executive associate athletic director Steve Newmark worked together in consultation with an advisory group to make their decision, according to sources.

Malone’s career NBA record is 510-394, which includes a 62.8 winning percentage over his final eight years in Denver. The Nuggets won the 2023 NBA Championship. The Queens, N.Y. native has not been a head coach in the college ranks. He did get his start in college, working as an assistant at both Providence and Manhattan before his pro career started in 2001. He’s worked as an NBA analyst since being let go in Denver on April 25, 2025.

Malone is known in coaching circles as having a high IQ basketball mind, according to sources. He crafted a unique offense that worked through NBA MVP Nikola Jokić in Denver, intent on sharing the ball, player movement and creating good shots. He’s spent time at various stops focused on either offensive or defensive schemes, which has built a well-rounded coaching acumen.

UNC’s decision to hire Malone came two weeks after school officials parted ways with Hubert Davis after five years. Carolina focused in on Arizona’s Tommy Lloyd and Michigan’s Dusty May as primary coaching candidates leading into Final Four week, but Lloyd elected to sign a contract extension with the Wildcats on Friday and May removed his name from consideration this weekend. Chicago Bulls head coach Billy Donovan was a candidate, but with the end of the NBA season not until this weekend and the transfer portal opening on Tuesday, school officials decided not to wait, according to sources.

While Iowa’s Ben McCollum, Vanderbilt’s Mark Byington, Baylor’s Scott Drew and Texas Tech’s Grant McCasland were under consideration, UNC made a surprise move and hired Malone, who had not received much media attention during the coaching search.

Malone will be tasked with elevating a UNC basketball program that has won one ACC championship, earned one No. 1 seed in the NCAA Tournament and reached one Final Four in seven years.

Malone’s daughter, Bridget, is a sophomore on the UNC volleyball team.

Malone played collegiately at Loyola University (Md.) from 1989-93. In 108 career games, the point guard totaled 383 points and 282 assists, while the Greyhounds posted a 32-79 record during his time in Baltimore.