FWIW, BQ reports in MLive:
One source, however, citing Murphy's agent, told MLive that Murphy has accepted a increase in compensation to remain at Creighton.
Good professional move by Murphy, but we don't know whether Creighton's increase was to match Michigan's offer or exceed it. Even if Murphy's new salary winds up being less than Michigan's offer, getting a raise while not having to move the family isn't a bad thing, exactly. Again, good for him.
I compare the situation with one that I face at my job. I'm given a budget to meet an objective. I'm asked if I can get the job done with that budget.
Spoiler Alert: It's not a real question--the answer is always Yes.
I'm sure Warde and Beilein meet to talk the overall management of the program, including the budget. Whether Warde sets the level of funding for assistants or whether Warde and Beilein agree that $205K is the portion of the overall operations budget that will go to each assistant, the amount is set.
The big question in this case is not "Can you hire Preston Murphy with this budget?", it's "Can you win with this budget?" I'm sure that the answer to this question, too, is always Yes.
Some fans might be embarrassed at news that looks like Michigan is operating on the cheap. As has been mentioned, though, Beilein's done a great job of bringing in assistants since turning over his first staff at Michigan. I have full confidence that he'll find some great coaches again at Michigan's price point as he has done in the past.