When Buzz Peterson’s contract as head coach of the men’s basketball team was bought out in March 2005, following two losing years during his four-year tenure at UT, the Athletics Department borrowed $1.39 million from UT in order to balance its budget for the fiscal year. The arrangement was that beginning in July 2005 the Athletics Department would make payments matching the interest rate UT made on its reserve funds. Beginning in July 2006, a three-year payment period would be in place, requiring a payment of $400,000 in 2006; a 2007 payment of $800,000; and a final payment in 2008.