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Arizona State and coach Kenny Dillingham have agreed to a new contract that will keep Dillingham in Tempe, Sun Devils athletic director Graham Rossini told 247Sports. The move is significant, as Dillingham received interest from Michigan in relation to its coaching vacancy.

"This was always the goal," Rossini said. "Secure generational leadership right here at ASU. We have the right coach and want him to have the tools to do his job in a way that keeps building excitement, connection and winning at ASU. Not only is the Valley activated, but the Sun Devils are about to ignite!"

Dillingham's contract still covers five years, but his salary rises to an annual average of $7.5 million over that span, according to ESPN. The new agreement also contains incentives that can extend the deal up to 10 years. Arizona State also agreed to increase the staff salary pool to $11 million.

Dillingham, an Arizona State alum, mentioned when speaking with reporters earlier in the week that increased support for his assistant coaches is vital to maintaining the program's success.

"The support for them and your players in this nature of the arms race, you have to get the arms to be competitive or even retain a team," Dillingham said. "In this crazy era of college sports, longevity is security, and security is protection for if there's something bad that happens. This profession is volatile, and security is a critical piece that is needed to build a program in the climate of chaos."

Since taking over as coach in 2023, Dillingham, 35, has helped elevate Arizona State to national relevance. The Sun Devils won the Big 12 and earned a College Football Playoff berth in 2024 and are a combined 19-7 since the start of Dillingham's second season. That Big 12 title came after the Sun Devils were picked to finish last in the conference in the preseason.

This year, Arizona State is 8-4 despite playing multiple games without starting quarterback Sam Leavitt. The Sun Devils will cap off their season against ACC champion Duke in the Sun Bowl on Dec. 31.

Kenny Dillingham staying home 

It was always going to be difficult to pry Dillingham from Arizona State. He grew up in Scottsdale, Arizona, and is an Arizona State alumnus. Dillingham attended Arizona State with his wife, Briana, whom he met at Chaparral High School. 

He broke into the college coaching ranks in 2014 as an offensive assistant with the Sun Devils. His parents and in-laws still live in Tempe. Dillingham is an Arizona State man through and through. 

"This is home," Dillingham said when speaking with reporters last month. "But you do have to continue to push, and my job in running a program is to push and push and push until you can't push any more. If I didn't do that, I'd be cheating my players, I'd be cheating my staff, I'd be cheating my fanbase, I'd be cheating everyone in this city, I'd be cheating the local businesses that feed off us winning, I'd be cheating everyone. So my No. 1 goal, always, is to do whatever I can to push the envelope for Arizona State football."

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Now he has a chance to continue building his legacy with the Sun Devils. It's shaping up to be a pivotal offseason for the program. 

Leavitt, who won 16 games as Arizona State's starter over the last two seasons, plans on entering the transfer portal. All-Big 12 running back Raleek Brown, Arizona State's leading rusher, is skipping his senior season to enter the 2026 NFL Draft. As is star wide receiver Jordyn Tyson, an expected first-round pick. 

Dillingham has recruited the high school ranks and worked the transfer portal very well during his time at Arizona State. He'll have to work his magic over the next few months to help the Sun Devils overcome some big losses. 

Where does Michigan turn? 

The last 24 hours have seen two of Michigan's top coaching targets drop off the board. Dillingham's new deal definitely removes him from consideration, and Alabama's win in the first round of the College Football Playoff likely means that coach Kalen DeBoer is sticking around in Tuscaloosa for at least another year. 

The timing of former coach Sherrone Moore's firing puts some pressure on Michigan to get a new deal done quickly. The early signing period has already passed and the transfer portal officially opens on Jan. 2. 

Current interim coach Biff Poggi remains an option. Sources told CBS Sports that Poggi has expressed interest in the full-time role and there is some support from current Michigan players for Poggi. Poggi could be a bridge option that provides some stability during a tumultuous period while holding Michigan's roster and 2026 signing class together. 

If Michigan wants to take a big swing, though, former Utah coach Kyle Whittingham could be an option. Whittingham stepped down from his post in December after 21 years spent leading the Utes, though he maintains that he is open to other coaching opportunities. The 66-year-old Whittingham would bring that much-needed stability while also touting a track record of success at the highest levels of football. Other rumored candidates for the opening in Ann Arbor include Washington's Jedd Fisch, Missouri's Eli Drinkwitz and Louisville's Jeff Brohm.