Tennessee Vols Men’s Athletic Director Mike Hamilton has been given a contract extension and a raise.
Hamilton’s base salary will increase from $274,575 a year to $350,000 for 2009-2010 and to $400,000 for 2010-2011.
In addition to his base salary, Hamilton will also earn between $40,000 and $90,000 annually from the university’s radio, television and media rights, and apparel contracts with corporate sponsors.
The combined total of potential bonuses was increased from $125,000 to $250,000 a year.
Hamilton will receive a retention bonus of $300,000 if he remains director of men’s athletics until June 30, 2014. His expense allowance was increased from $25,000 to $35,000 annually.
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.
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.
