The new agreement puts Babcock under contract with the Red Wings through the 2014-15 season. Financial terms of the deal weren't released but the Detroit Free Press reported that Babcock is thought to make about $2 million a year. He is believed to be the highest paid coach in the NHL.
Babcock, 47, is in his sixth season in leading the Red Wings. He owns a 259-101-52 regular-season record in Detroit and helped the Red Wings to the Stanley Cup title in 2008. The Red Wings lost in the Stanley Cup finals in 2009.
Counting two seasons coaching the Anaheim Ducks, Babcock is 328-163-85 in the regular season and 63-39 in the playoffs.
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