I'm sure you've all heard about it, but here's what I know/think.
From everything I've heard/read it sounds like an extension purely for recruiting purposes. What does this mean? Well, it's tough to sell a kid when you only have 2 years left on your deal, so extending him for another 2-4 years will allow him to be the coach (in theory) for the entire career of the kids that are committing to him at this point. The great thing about this is that a) obviously it will help recruiting and b) the buy out appears to not be increasing at all and neither does his salary.
I think Brew, Maturi, and everyone realizes that he NEEDS to do something next year. What does this mean? Well, I don't think it will be a Rose Bowl but he needs to beat at least one of these (USC, PSU, IOWA, OHIOST, WIS) (4 of which are at TCF) and improve the club enough to be in the Alamo Bowl or better. Is this completely out of the realm of possibilities...no, but the odds are slim.
So what's going to happen? He gets this "extension", the club goes 6-6 or 5-7 again next season and he's gone. This changes nothing from the previous situation without him getting an extension because the buy out will remain constant (most reports state this to be the case). This will only help prevent defections from the current recruiting class and hopefully entice a few more fellas to come aboard. Best case scenario, Brew goes 8-4 next year and makes a nice bowl and EARNS a real extension...worst case the team stays stagnate and he's gone with hopefully a better recruiting class for 2010 and 2011 than he would have had as a lame duck coach with only 1 year on his deal.
KFAN and everyone will try to spin it as "what the hell are we doing? this guy is horrible?" but that's just because they hate the Gophers and frankly it's an easy punching bag. But if you look at how flimsy this "extension" actually appears to be I think you'll realize it is definitely a great thing for the Gophs and the future.
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