Indiana football coach Tom Allen has turned a breakout 2020 season into a new seven-year contract worth $4.9 million per year.

The school announced the news Monday. Allen, who previously made $3.9 million per year, is under contract through the 2027 season.

Indiana athletic director Scott Dolson said in a statement:

"Tom Allen has proven himself to be not only the right person for our student-athletes and our program, but one of the best football coaches in the country. The enthusiasm and outlook for our program is at an all-time high, and the future of Indiana Football is in great hands. I look forward to Tom leading our program for many years to come."

Allen was named the Big Ten's Coach of the Year by both media and coaches, leading the Hoosiers to a 6-2 record and a trip to the Outback Bowl.

Indiana peaked at No. 7 and ranked 12th in the final Associated Press poll, the school's highest finish since 1967.

Allen served as the Hoosiers' defensive coordinator in 2016 but moved into the lead role when head coach Kevin Wilson resigned before that season's bowl game. He took over a program that didn't have a winning season in the previous eight years and last posted an eight-win season in 1993.

After going 5-7 in each of his first two years, Allen led Indiana to an 8-5 record in 2019 and a trip to the Gator Bowl.

The 2020 squad was even better with a 6-1 mark in the regular season, the only blemish a seven-point loss to Ohio State. A 26-20 loss to Ole Miss in the Outback Bowl ended the season on a sour note, but there should be high expectations in 2021 if starting quarterback Michael Penix Jr. returns to full strength after tearing his ACL in November.

The 50-year-old Allen is set to make $4.3 million in 2021, and his salary will increase by $200,000 in each year of his deal, per ESPN's Adam Rittenberg. His contract will also extend by one year for each bowl appearance.