"Mike Hamilton continues to be an outstanding leader for the high-profile men's athletics department at the Knoxville campus. He has had to make tough decisions in the last few years, and he has proven over and over the ability to meet or exceed expectations," said Interim UT President Jan Simek. "This new agreement is a sign of our confidence in him."
"I want to express thanks to Dr. Simek for his expressed confidence in the job we're doing in athletics," said Hamilton. "Our success is a team effort, made possible by tremendous University support as well as the tireless work done by our staff, coaches and student-athletes. We go to work every day to give our student-athletes the best possible opportunity to succeed on and off their fields of play and to represent the best fans in America in a first class manner. I look forward to the many successes that lie ahead."
His supplemental compensation from income earned from radio, television and media rights and athletics shoe and apparel will increase from $40,000 to $90,000 a year.
The new contract also made changes to bonuses based on team and academic performance and to a discretionary bonus. The combined total of potential bonuses was increased from $125,000 to $250,000 a year. A new category was added for number of teams with an Academic Progress Rate exceeding 925, a benchmark established by the NCAA.
Hamilton will receive a retention bonus of $300,000 if he remains director of men's athletics through and until June 30, 2014. His expense allowance was increased from $25,000 to $35,000.
Hamilton's contract was extended from 2012 to 2014 in January 2009. As a result of the delay between the extension and the new compensation agreement, Hamilton will receive a lump sum of $125,000 as retroactive payment for 2009.
His total guaranteed compensation package for 2009-2010 is $600,000, including the $125,000 one-time lump sum. The following year, the package will be $525,000. This year, the sum was $339,575.
During Hamilton's tenure, his department has increased its contributions to the University.
As part of the newly-announced Tennessee Fund, UT Athletics will provide an average of about $3 million annually over 10 years to the University. In addition, athletics pays $1.375 million a year for scholarships to non-athletes and $1.125 million annually for parking garage debt service.
This week, Hamilton and UT Knoxville Chancellor Jimmy G. Cheek announced the athletics department will provide $1 million to the campus that will go to the Student Success Center, the Tennessee Teaching and Learning Center and graduate student assistantships.
Tennessee has seen significant revenue growth under Hamilton. UT Athletics has seen donations rise from $19.5 million in 2003 to $42 million in 2008. Tennessee also has secured a partnership with IMG College worth a minimum of $133 million between 2007 and 2022 and seen basketball revenue increase from approximately $4.15 million in 2004-05 to $8.48 million in fiscal year 2009. He is currently overseeing the most aggressive facilities campaign in the history of Tennessee Athletics, including the $200 million Master Plan for Neyland Stadium.
Under Hamilton, Athletics has implemented a zero-based budgeting model to create a reserve of more than $7 million to ensure UT can continue to be among the handful of athletic departments in the country that receive no funds from state subsidies or taxes.
All funding for the athletics department, including salaries, is from monies generated by athletic resources and not from appropriated funding by the state of Tennessee or other university-related revenues.