Facing a $3 million projected budget deficit, Tennessee athletic director Mike Hamilton decided to spread the burden over four fronts rather than one.

That's why football season ticket prices went up only $19 each instead of $54 each.

That's why students will pay for tickets for the first time.

That's why faculty/staff discounts on buying tickets were reduced.

And that's why you can probably buy a beer at a concert at Thompson-Boling Arena in the not-too-distant future.

Hamilton said Thursday the athletic department weighed several options on how to come up with the revenue to offset the projected shortfall.

The simplest way would have been increasing season-ticket prices by $54.

"That would have gotten us to $3 million,'' Hamilton said, "but it would have caused a lot of headaches.

"We decided it would be better to spread it out over some other places.''

Which, in essence, meant four smaller headaches rather than one migraine.

Hamilton, who on Thursday addressed a budget hearing with faculty representatives, said the $54 increase would have made UT the third highest ticket in the SEC.

But it would have been too hard a hit on the core fan base, the ones who buy season tickets. He preferred to spread the burden.

Bill Myers, the UTAD's chief financial officer, broke it down as follows:

n A $19 season-ticket increase will generate $1.45 million.

n Students paying $90 for season tickets (or $15 per game) will generate $1.15 million.

n Reducing the faculty/staff discount from 50 percent to 20 percent will generate $500,000

n Beer sales at non-athletic events at the arena should generate $450,000.

The four sources add up to $3.55 million, which allows the budget to project a $500,000 surplus to apply to the reserve fund.

The $87.5 million budget for fiscal 2009 will be submitted for approval at the Board of Trustees meeting in June.

Actually realizing the $500,000 surplus appears to hinge on the approval of beer sales at the arena and its projected revenue of $450,000.

The Knoxville City Council, sitting as the Beer Board, must approve an application from Sodexho, UT's concessions contractor.

That vote has been postponed once due to a request by the UT Faculty Senate for more time to study the issue.

"If the Beer Board proposal does not go through,'' Hamilton said," we'll have to, A, not have a projected $500,000 surplus, or, B, we'll find either an additional revenue source or cut expenses to make sure we get where we want to go.

"And that decision will be reached at the appropriate time.''

Hamilton noted that the athletic budget contributes $1.375 million to academic scholarships that help 2,400 students on campus.

"There's nobody (else) anywhere doing that for academics,'' Hamilton said.

© 2008, Knoxville News Sentinel Co.