I agree that I think the U of M will pay whatever PJ demands if the program rises further up the food chain.
The move by PJ to buy that nice second house on Lake Minnetonka is a good sign as well, as that is the type of place he could not have in places like Norman Oklahoma or South Bend IN, and I think he (and wife) values that and other things he gets in Minneapolis outside of football. There are not a lot of places like Lake Minnetonka and Wayzata near a lot of the premier college football destination jobs (at least if you like lakes as PJ apparently does)
Rebuilding the nearly unmatched history at Minnesota seems to appeal to him, and as long as he can win big here, along with having top facilities to recruit to, I am not sure what would motivate him to leave once he gets to program near the top, other than getting an offer to go back to the top job in Michigan or something like that.