University of Tennessee Head Basketball Coach Bruce Pearl was awarded a two-year contract extension and increased compensation following the Vols' best basketball season since 2000. UT President Dr. John Petersen and Athletics Director Mike Hamilton made the announcement Wednesday.

"Not only is Coach Pearl one of the very best coaches in the nation, but more importantly, he has become a great ambassador for our university during his tenure at Tennessee," Petersen said. "The Board of Trustees and I are happy that he will be here for the next six years."

The new agreement increases Pearl's annual total compensation package to $1.1 million for the 2006-07 season and runs through the 2011-12 basketball season. Pearl's base salary rises from $225,000 to $300,000. In addition, Pearl receives monies for radio and television commitments of $300,000, an endorsement fee of $300,000, a public relations fee of $150,000 and a $50,000 guarantee for camps. Over the life of the six year contract, Pearl's compensation will average $1.3 million.*

"I am grateful to President Petersen, the Board of Trustees, our Athletic Director Mike Hamilton, my staff and of course our players. I appreciate the Tennessee fans everywhere for the support they have shown our team," said Pearl. "The University of Tennessee has so much to offer – from great academic programs to incredible athletic resources to the most passionate fans in the country. I look forward to being the men's basketball coach at Tennessee for many more years."

Pearl, who led Tennessee to a 21-6 record and the Southeastern Conference's Eastern Division championship this season, was named the USBWA All-District IV Coach of the Year earlier this week. Pearl directed the Vols to a 12-4 SEC record that included a 9-1 mark against the SEC's Eastern Division. Pearl's 21 wins in his first season at the helm of the Tennessee program is tied for the best record by a first-year coach at UT.

"In his first year at Tennessee, Coach Pearl accomplished more than we could have hoped for," said Hamilton. "His energy and enthusiasm have brought new life to Tennessee basketball."

The contract includes two clauses – a buyout should the university choose to cancel the contract with Pearl and a penalty clause should Pearl choose to leave the university for another coaching opportunity. The university's buyout is the number of years remaining on the contract times the base salary plus one year of radio and TV, one year of endorsement fees, one year of public relations fees, and an additional $250,000 payable over a 36-month period. Pearl's obligation would be $1 million payable over 36-month period.

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