KNOXVILLE, Tenn. (WVLT) -- New contracts are being handed out to two University of Tennessee coaches.

UT head football coach Phillip Fulmer has been given a new deal worth an average of $2.99 million annually. Starting in the 2008 season, Fulmer's contract is worth $2.4 million and climbs to $3.3 million by 2014.

Concerning Fulmer's new contract Wednesday morning, UT Men's Athletic Director Mike Hamilton said, "There's a built-in annual increase based on performance, where he can actually have additional increases and we think it's a very fair package in the context of what's going on out there nationally."

Fulmer's new contract also included a $1 million longevity bonus in 2012 for 20 years as head coach, and an automatic $150,000 annual raise.

Fulmer could get up to a $1 million automatic pay increase if he meets certain goals including an SEC Championship, playing in a BCS bowl game, and winning the BCS National Championship.

Men's head basketball coach Bruce Pearl also received a contract extension through 2014 as well as a new deal worth an average of $2.3 million a year. Pearl's deal starts at $1.6 million for the 2008-09 season and goes up to $2.2 million by 2014, and includes a $1.5 million upfront bonus.

Pearl's contract buyout amount is $2.5 million, and decreases to $1 million over the next five years.

The UT Athletics Department says all athletics department funds, including coaches' salaries, are generated from athletic activities, and not taken from academic dollars.

You can see the details of both coaches' contracts HERE.

UT assistant football coaches' salaries are also increasing. Here's what they're going to look like for the 2008 season: