First if he doesn't get the job then it looks bad on him AND it makes Michigan organization and fans uneasy and probably put off.
Second, when negotiating you don't start out with anything remotely that sounds like your interested, especially if you are trying to get, evidently, well over $10 million a year,
If anything is done with Harbaugh, it will be done with little speculation unless the media gets used as a tool for negotiations somehow.
What I would expect is "I have my dream job and I'm not the least bit interested" and I would expect him to deny that he took the call or would even talk to Kroenke.
But when Stan offers him $2 or $3 million more a year, it probably gets pretty interesting.