BIRMINGHAM — Alabama basketball coach Nate Oats continues to put one of the best products on the floor in the SEC, and that's reflected in his new contract.

Oats has had his contract extended two more years through the 2028-29 season, the compensation committee for the UA System Board of Trustees voted to approve Friday at the meeting in the UAB Hill student center ballroom.

Oats will make $4.5 million in base salary, talent fee and expense account in the first year. That will escalate by $200,000 each year, reaching $5.5 million in the last year of the deal. That does not include incentive bonuses. At that number, he ranks fourth among SEC men's basketball coaches in annual compensation this season behind Kentucky's John Calipari ($8.5 million), Tennessee's Rick Barnes ($5.45 million) and Auburn's Bruce Pearl ($5.4 million).

Oats was making $3.225 million this season under his previous contract signed in 2021, which ranked sixth in the SEC behind Arkansas' Eric Musselman and Texas A&M's Buzz Williams, both of whom are at $4.1 million in annual compensation.

Oats is in his fourth season with the Crimson Tide, and Alabama is coming off the most lopsided SEC win in program history after beating Vanderbilt 101-44. The Crimson Tide (19-3, 9-0 SEC) next travels to LSU on Saturday (3 p.m. CT, ESPNU).

Oats is 80-39 over three-plus seasons at Alabama. During the 2020-21 season, he led the Crimson Tide to an SEC regular-season title and an SEC Tournament title before reaching the Sweet 16 round of the NCAA Tournament.

What is Nate Oats' buyout?

His buyout in the first year of the new contract would be $12 million. In the second year it would be $10 million. In the third year it would be $7 million if he decides to leave the job.

"It shows a great commitment by us from what we’re offering from a contract standpoint," Alabama Athletics Director Greg Byrne said. "It also shows a great commitment by Coach Oats that he wants to be at the University of Alabama, which we think is a great testimony on his part as well.”

What Nate Oats said about his extension

Soon after the contract was approved, Oats released a statement.

“I am honored and humbled to receive a contract extension from The University of Alabama,” Oats said.” As I have said many times, my family and I love this community, the city of Tuscaloosa and the university. I am incredibly proud of what we have been able to build during our time at UA, which is a direct reflection of the student-athletes, coaches and staff who have all played a big part in our success. I am excited for what’s happening in the future of our program and the direction we are heading. I cannot thank President Stuart Bell, Chancellor St. John, The Board of Trustees and Greg Byrne enough for trusting me to lead this program for the long term.”

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Contract incentives in NCAA Tournament increase

The incentives for winning the SEC regular-season title and the SEC tournament did not change (each are $50,000), but Oats can now make more money in bonuses for winning games in the NCAA Tournament.

If Oats wins a Final Four game, he will make $100,000. If Alabama wins the NCAA Tournament championship, he will make $500,000.

Previously, he would have made only $100,000.

If he wins an NCAA Tournament championship, Oats will make $650,000 based on incentives for NCAA participation, wins in the pre-Final Four rounds, and the wins in the Final Four and championship game.

USA TODAY's Steve Berkowitz contributed to this report.

Nick Kelly covers Alabama football and men's basketball for The Tuscaloosa News, part of the USA TODAY Network. Reach him at nkelly@gannett.com or follow him on Twitter: @_NickKelly

This article originally appeared on The Tuscaloosa News: Nate Oats salary: Alabama basketball coach No. 4 in SEC after raise