Gem of a deal

Photo by Amy Smotherman Burgess // Buy this photo

University of Tennessee men's basketball coach Bruce Pearl reacts during a game in February 2006 against Auburn. UT altered Pearl's contract to the coach's liking.

Photo by Amy Smotherman Burgess
Buy this photo »

University of Tennessee men's basketball coach Bruce Pearl reacts during a game in February 2006 against Auburn. UT altered Pearl's contract to the coach's liking.

The University of Tennessee has tweaked his contract to the liking of men’s basketball coach Bruce Pearl, who said Wednesday that he has agreed in principle to the terms of the deal that also has been extended one year.

The contract, which will run six years, is worth $1.3 million next season. It features escalator raises of $100,000 annually through the 2012-13 season and retention (longevity) bonuses of $500,000 after the 2009-10 season and another $500,000 after the 2012-13 season.

With the bonuses in place, Pearl’s contract averages $1.56 over the next three years and $1.716 over the next six years.

“There was no negotiation,’’ said Pearl, whose contract paid him $1.1 million last season and originally called for him to make $1.2 million this season and did not include the $1 million in retention bonuses.

“This is what was discussed a week after the season. I’m really glad we did the longevity bonus. I want to be here for a long time, and it’s great there’s a financial incentive that goes with it.’’

Pearl’s other incentive bonuses remain the same as last season, based on the percentage of his base pay. If he makes the NCAA Tournament, he earns $52,000. If he makes the Sweet 16, that bonus reaches $78,000. If he reaches the Final Four, it’s up to $100,000, and if his Vols win the national championship, the total will be $250,000.

Additionally, he would make $75,000 by winning either the SEC regular season or the SEC tournament. He would also get a $25,000 bonus if he’s named SEC coach of the year and a $50,000 bump for being named national coach of the year.

The buyout clauses also remain unchanged. If Pearl chooses to leave the Vols for another coaching opportunity before 2013, he’d have to pay UT $1 million over 36 months. UT’s buyout is Pearl’s base salary for each year remaining on his contract plus a year of radio and TV, endorsements, public relations fee and an extra $250,000 over 36 months.

The Vols finished last season 24-11 and ranked No. 18 in the USA Today/ESPN Coaches poll. UT is projected in the top 10 of most preseason collegiate basketball polls.

Pearl was offered an opportunity to interview for the head coaching vacancy at Iowa after his team’s Sweet 16 run last season, but politely declined, citing a loyalty to the rapidly improving Tennessee program.

Hamilton said the raise and retention bonus are the university’s way of rewarding Pearl’s loyalty.

“We need to send a signal to Bruce that him being here matters, and we need to show the fans we’re committed to the program,’’ Hamilton said. “I don’t want him leaving for another intercollegiate opportunity.

“I would expect we’ll perform well this season, and we’ll reward him appropriately based on performance and market value. He’s doing an unbelievable job. I’m proud he’s our basketball coach. He touches all bases, and he does the right thing from marketing and public relations standpoint.’’

The Vols made the NCAA Tournament and increased their attendance each of the past two seasons under Pearl’s leadership. Attendance is up 7,436 per home game since Pearl took over as head coach.

UT drew an average of 17,984 at Thompson-Boling Arena last season, fourth in the nation behind Kentucky, Syracuse and North Carolina.

Tennessee is on the verge of completing Phase I of a $20 million renovation to Thompson-Boling Arena as well as finishing a $16 million practice facility.

“We’re establishing a partnership toward success, and there’s give and take,’’ Hamilton said of his relationship with Pearl. “The $36 million in facility improvements mean something, because it helps coach recruit the right kind of kids to achieve what he wants to achieve.’’

Funding for the projects is coming from donors to the Campaign for Tennessee Basketball and revenue from new premium seating areas such as Thompson-Boling Arena luxury suites and loge seats.

All funding for the athletics department, including coaches’ salaries, is from money generated by athletic resources and not from appropriated funding by the state of Tennessee or other university-related revenues.

Other top men’s basketball salaries from around the country, according to a story in the Memphis Commercial Appeal newspaper, include North Carolina’s Roy Williams ($3 million), Duke’s Mike Krzyzewski (reportedly $3 million), Ohio State’s Thad Matta ($2.1 million), Louisville’s Rick Pitino ($2 million), Texas’ Rick Barnes ($2 million), Michigan State’s Tom Izzo ($1.8 million) and Marquette’s Tom Crean ($1.7 million).

© 2007, Knoxville News Sentinel Co.
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