Michigan and coach Dusty May have agreed to a multi-year contract extension, Wolverines athletic director Warde Manuel announced Friday. The news comes amid a successful first season for May with the No. 12 Wolverines and at a time when Indiana is in the market for a new coach.

May spoke exclusively to CBS Sports’ Matt Norlander on Friday, shortly before his Wolverines hosted their rivalry matchup against No. 14 Michigan State. 

The reason for the timing?

“We’ve picked up positive momentum as a team, and on the recruiting front, and we didn’t want it to be a distraction internally or externally,” May told CBS Sports.

CBS Sports can exclusively report on the details of May’s new contract terms:

• A one-year extension on the deal, which now runs through the spring of 2030
• An increase of $1 million annually in salary
• A pay bump across the board for the Michigan men’s basketball staff
• A big increase investment for program resources, including Michigan’s NIL war chest
• A buyout that will rise to $7.5 million

The larger question, despite the new agreement: Is Indiana is now fully off the table?

“I think it makes it obvious: I’m staying at Michigan,” May told CBS Sports, adding, “I really wasn’t interested in leveraging in negotiating” with Michigan as the team works toward a high NCAA Tournament seed.

May, 48, worked as a student manager for the Hoosiers under the legendary Bob Knight from 1996-2000 and naturally became a hot name in the IU search when current Indiana coach Mike Woodson announced earlier this month that he’ll be stepping down after the 2024-25 season.

“I am excited to announce that Dusty and I have agreed to a new multi-year contract,” Manuel said. “His commitment to this University and the success of the men’s basketball program has far exceeded our expectations and makes us all excited for what the future holds. I look forward to Dusty, Anna, and his family remaining a part of the fabric of this University and community for many years to come.”

After beating Indiana 70-67 on Feb. 8 inside Assembly Hall shortly after Woodson’s announcement, May called it “flattering” to be connected to the IU opening but reiterated that ‘I’m very, very happy” at Michigan.

Michigan (20-5, 12-2 Big Ten) is atop the Big Ten standings entering Friday night’s rivalry game against No. 14 Michigan State. The Wolverines are also a projected No. 3 seed for the NCAA Tournament in CBS Sports Bracketology after finishing 8-24 last season.

May’s original contract paid him $3.75 million annually over a five-year span. Prior to Michigan, May led FAU for six seasons and famously guided the Owls to the 2023 Final Four as a No. 9 seed.