The Sugar Bowl season continues to be sweet for the University of Hawai'i athletic department, which cashed in with a 30-percent hike in guaranteed rights fees for a new local television contract announced yesterday.

Coming off its 12-1 football season and Sugar Bowl appearance, the athletic department will receive at least $2.3 million per year for a minimum of three years and a provision for six years under the terms of an agreement with Oceanic Time Warner Cable and KFVE.

That is a $550,000 per year increase on the $1.75 million UH had been receiving and the school will earn more if pay-per-view sales of its games reach higher levels.

"This is a very significant improvement and one we can put to good use," said UH athletic director Jim Donovan.

It comes as UH has been forecasting a $1.5 million deficit for the upcoming fiscal year, which begins July 1, 2008. While the TV increase will not put UH in the black, Donovan said, "it is money we can use."

"I believe this is one of the most lucrative local television packages in the country," Donovan said. "Through this relationship, our fans have enjoyed extensive coverage of UH sporting events and the revenue has really helped support our (athletes)."

Pay-per-view rates for the 2008-09 school year have yet to be announced but John Fink, vice president and general manager of KFVE/KHNL, said he expects them to be "similar" to 2007 when season packages on O'ahu were $330 for renewals and $385 for new customers.

Fink said the rates would be set after it is determined how many football games KFVE "loses" to ESPN, which has the Western Athletic Conference TV contract. Fink said he expects to keep at least eight of UH's 13 games and offer a 17- to 18-game season package, including some women's volleyball and men's basketball contests. KFVE televises approximately 100 UH events per year in addition to the pay-per-view games.

For the first time, UH will offer football season ticket holders a 50-percent discount on a special road pay-per-view package. Season tickets must be purchased by July 18 to qualify for the discount, UH said.

If revenues reach $7.5 million in the first three years of the contract, it automatically rolls into a six-year deal, officials said. If not, the parties may still agree to extend it but are not obligated to do so.

In addition to the rights fees, UH said it will receive "more than $350,000" annually in production and advertising time on KFVE, KHNL and Oceanic.

While the contract extends what has been a 25-year relationship with KFVE/KHNL and its predecessors, who pioneered a UH package in 1984, it also marks a shift in how the partnership is weighted. Heretofore all contracts were with KFVE/KHNL while Oceanic and the stations had a subcontract.

But the new agreement calls for Oceanic to be the majority partner, paying $1.8 million per year in rights fees with the remaining $500,000 coming from KFVE, according to people involved. Splits of the proceeds will reflect the investment, officials said.

Oceanic and KFVE officials said high definition broadcasts are a "possibility" in the future.

There has been speculation whether Jim Leahey, a television and radio voice of UH sports for more than 30 years, would return. Fink said, "we're in discussions and, hopefully, we can work something out."