Kenny Dillingham just made one of the biggest coaching decisions of the college football offseason. The 35-year-old Arizona State head coach signed a lucrative new contract extension that keeps him in Tempe rather than heading to Ann Arbor. Michigan had identified Dillingham as one of its top targets. However, he turned down what sources described as “significant interest” from the Wolverines to remain at his alma mater.

The financial commitment Arizona State made to keep Dillingham is nothing short of impressive and now ranks him as the 25th highest earner among all CFB coaches. His new deal will average $7.5 million annually over the course of the contract. This represents a substantial increase from his previous $5.8 million base salary, which was agreed upon after last season’s Peach Bowl run. Arizona state law restricts contracts to a maximum of five years. 

But the agreement includes performance-based incentives that could extend the deal up to 10 years. The contract is currently pending board approval, though that’s largely considered a formality. Given the timing of the announcement and Dillingham’s importance to the program, it has to be approved.

Beyond Dillingham’s personal compensation, the real story lies in Arizona State’s commitment to building a championship-caliber program from top to bottom. The staff salary pool has been increased to $11 million. It places ASU near the very top of the Big 12 conference. Pete Thamel reported that “the heart of this deal was resources for the program.” Dillingham has prioritized investments in his coaching staff and overall program infrastructure. 

The extension naturally comes just days after Michigan emerged as a serious suitor following Sherrone Moore’s dismissal. Reports indicated that Dillingham was one of three primary candidates the Wolverines were targeting. Michigan is one of the blue-blood opportunities that most coaches would at least seriously consider. 

Yet Dillingham had already made his intentions clear to his players in early November. He has walked into position meetings to tell them he would continue leading Arizona State into next season. This was well before the Michigan job even opened up.​

The Phoenix native and ASU alumnus has repeatedly emphasized, “This is home.” Now with ASU’s commitment to full participation in revenue sharing and the financial backing to compete with anyone in the Big 12, Dillingham has everything he needs to build something special in Tempe. Michigan will have to look elsewhere. But for Arizona State and its passionate fan base, keeping their rising star coach might be the biggest win of the entire season.​

Dillingham’s top priority after the extension

With the ink barely dry on his lucrative contract extension, Kenny Dillingham faces an immediate challenge that might define Arizona State’s 2025 season. He has to find a replacement for Sam Leavitt. The quarterback, who just led the Sun Devils to a Big 12 championship last year, informed the head coach in early December that he intends to enter the transfer portal when it opens on January 2. 

With backup Jeff Sims’ eligibility exhausted and three freshman quarterbacks with zero collegiate game experience currently on the roster, Dillingham has to be aggressive in the transfer portal market.

The good news is that Dillingham has several intriguing options to choose from. And his reputation as a quarterback developer should make ASU an attractive destination. Multiple reports have directly linked Dylan Raiola to the Sun Devils. Old Dominion’s Colton Joseph presents another fascinating possibility. The sophomore threw for 2,624 yards and 21 touchdowns while also rushing for over 1,000 yards and 13 scores.

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Florida’s DJ Lagway, who threw for 2,264 yards and 16 touchdowns last season, rounds out the top tier of targets. Analysts note that Dillingham’s offensive mind and Arizona State’s wide-open Big 12 championship window could be exactly what Lagway needs. The transfer portal doesn’t officially open until January 2. But Dillingham’s already laying the groundwork to ensure his next quarterback can maintain what this program just accomplished.​