The University of Kentucky announced Thursday night it has signed basketball coach John Calipari to a new seven-year contract that will make him the second-highest paid coach in college basketball.

If Calipari, 55, stays to the end of the deal, which runs out in March of 2021, he would make $52.5 million in guaranteed compensation.

He made $5.2 million annually under the old deal and will average $7.5 million under the new one.

"Basketball has long been the marquee sport at the University of Kentucky," athletic director Mitch Barnhart said in a news release. "It is a sport that the traditions of this university and this state have been founded on. They were developed and sort of started from the get-go by Adolph Rupp and through many good people since. What Cal has done is returned us to those glory days of Final Fours and championship efforts, great players, and all along he's helped young people understand the responsibility of going to class, of the commitment to each other and to a program that has a rich tradition as this one does.

"It has long been our goal of the last three to five years that Cal enjoy this as his final stop in coaching and that he has the opportunity to finish his career at the University of Kentucky and hopefully set standards and win championships that will be remembered for many, many years to come."

Calipari's new contract includes no incentives for on-court performance — his old deal was loaded with them — but he'll be rewarded richly for every year he stays with annual retention bonuses that average $2.33 million. His only other annual incentive is $50,000 for academic achievement: an APR score of 950 or higher.

Calipari, who has led UK to three Final Fours, two national championship games and the 2012 title, will make $6.5 million this season, $7 million next season, $7.25 million in 2016-17, $7.75 million in 2017-18 and $8 million in each of the final three years of the deal.