Athletic Programs of the Longhorns and Aggies: Financial Comparisons and Contrasts in the SEC Era
The University of Texas Longhorns and Texas A&M University Aggies are two of the most prominent collegiate athletic programs in the United States. Both have long-standing traditions of success, a passionate fanbase, and a deep commitment to sports excellence. With their recent entrance into the Southeastern Conference (SEC), both programs have joined an elite conference with lucrative television contracts, championship ambitions, and significant revenue-generation potential. However, the financial dynamics between these two universities’ athletic programs differ in terms of revenue generation, expenses, and overall strategies. Although both programs now share the same SEC address, their financial realities remain distinct.
I. Historical Background and Athletic Program Overviews
Before diving into the financials, it’s essential to understand the history of the two schools’ athletic programs. The University of Texas Longhorns, based in Austin, have been one of the most dominant athletic programs in NCAA history. Historically competing in the Big 12 Conference, Texas has amassed numerous national championships in football, basketball, baseball, and track and field, to name a few. With a highly competitive football program, Texas has generated considerable revenue from ticket sales, media rights, and other sources, making it one of the wealthiest college athletic departments in the nation.
On the other hand, Texas A&M, located in College Station, has experienced its own share of success, particularly in recent years. A&M, traditionally a member of the Big 12 (before its move to the SEC), has been competitive in football, basketball, and baseball. The Aggies’ football program, in particular, has experienced a significant surge in success since joining the SEC in 2012, with increased visibility, higher profile recruits, and greater financial backing. However, A&M’s historical trajectory in terms of athletic success and financial infrastructure has not been as extensive as Texas’.
II. Revenue Generation: Texas vs. Texas A&M
Revenue generation is one of the most important metrics when comparing the financial status of athletic programs. For both the Longhorns and the Aggies, football is the cornerstone of their athletic budgets. However, their financial strategies differ in terms of how much money they generate and the sources of that income.
A. Football Revenue
Football is undeniably the cash cow for both Texas and A&M. Both schools play in high-profile conferences with large fanbases, leading to high levels of ticket sales, merchandise, and sponsorship deals. However, the scale of this revenue differs greatly between the two programs.
The University of Texas Longhorns have a massive advantage when it comes to football revenue. The Longhorns have one of the most profitable college football programs in the country, regularly pulling in over $100 million annually in football-related revenue. This includes income from ticket sales at their massive 100,000+ seat Darrell K Royal–Texas Memorial Stadium, lucrative television contracts (including the Longhorn Network, a deal exclusive to Texas), sponsorship agreements, and merchandising. As of recent reports, Texas football alone generates an average of $115 million in revenue per year, making it one of the wealthiest athletic programs in the nation.
In contrast, Texas A&M has also experienced a significant bump in football revenue since joining the SEC in 2012, but their total revenue is still smaller than Texas’. According to reports from the 2022 season, Texas A&M’s football revenue was estimated at around $90 million, a solid figure but considerably lower than the Longhorns. A&M’s move to the SEC has provided them with access to higher media rights deals, significantly boosting their revenue, but they still face competition from other SEC powerhouses like Alabama, Georgia, and LSU.
B. Media Rights and Television Contracts
Media rights and television contracts are another crucial source of revenue for both programs. Texas is uniquely positioned to leverage its media rights to maximize its financial footprint. The Longhorn Network, which was launched in 2011, gave Texas a significant advantage in terms of media rights deals. While it has faced some challenges and controversies regarding its reach, it has nevertheless allowed the university to capture a significant portion of football revenue.
In 2025, as Texas joins the SEC, the school will participate in the highly lucrative SEC media rights deal, which will include a massive payout from ESPN. This is expected to significantly increase Texas’ financial resources. The SEC’s media deal is one of the most valuable in college athletics, and with Texas being one of the most recognized brands in the sport, the Longhorns are poised to benefit handsomely.
Texas A&M, while benefiting from the SEC’s media deal, has not had the same level of media rights leverage as Texas. Since joining the SEC, A&M has gained greater exposure and media revenue, but its share of the SEC media rights deal is comparatively smaller. However, the Aggies have made significant investments in their facilities and fan experience, which could eventually help them close the revenue gap.
C. Other Sports Revenues
While football is the dominant revenue source, both universities also generate income through other sports like basketball, baseball, and track and field. Texas, with its larger fanbase and success across various sports, typically generates higher revenue from these programs. The Longhorns’ men’s basketball program, for example, has enjoyed increased visibility and success in recent years, which has translated to increased ticket sales and higher sponsorship opportunities.
Texas A&M has a strong athletic program in its own right, particularly in women’s sports like volleyball and softball, but it has not historically been able to match Texas in terms of overall revenue from these sports. A&M’s success in baseball and women’s basketball provides some supplementary income, but it is not on the same scale as Texas.
III. Expenses: Longhorns vs. Aggies
In addition to revenue generation, it’s important to examine the expenses associated with maintaining such large athletic programs. While both universities invest heavily in their athletic facilities, coaching staff, and travel expenses, there are distinct differences in their overall expenditure strategies.
A. Operating Costs
Texas, with its larger athletic budget, has higher operating costs compared to Texas A&M. The Longhorns have some of the most expensive facilities in college athletics, including the state-of-the-art Frank Erwin Center for basketball, the Darrell K Royal–Texas Memorial Stadium, and the recently renovated Mike A. Myers Stadium for track and field. These facilities require substantial upkeep, including maintenance, staffing, and security. In addition, Texas maintains large coaching staffs across its sports programs, which translates into significant payroll expenses.
Texas A&M’s athletic facilities have also been upgraded since the school joined the SEC, but they still operate on a smaller budget. A&M’s Kyle Field, for instance, has undergone significant renovations, and the Aggies continue to build and improve their facilities to compete at the highest level. However, their overall operating costs are typically lower than Texas’, due to the smaller scope of their athletic operations.
B. Coaching Salaries
Coaching salaries represent one of the largest expenses for any major university athletic program. Texas has long been a leader in this area, with some of the highest-paid coaches in college sports. Texas’ football coach, for example, has one of the top salaries in the nation, reflecting both the size of the program and the high level of competition for top-tier coaching talent.
Texas A&M has also made substantial investments in coaching staff, particularly in football. Jimbo Fisher, the Aggies’ head coach, is one of the highest-paid coaches in college football. However, his salary is still not quite on the same level as Texas’ football coach, reflecting the difference in scale between the two programs.
C. Facilities and Infrastructure
Both Texas and Texas A&M have made significant investments in their athletic facilities, understanding that state-of-the-art infrastructure is key to attracting top-tier recruits and maintaining competitive programs. Texas has some of the most iconic facilities in college athletics, such as the aforementioned Darrell K Royal–Texas Memorial Stadium. The university has also invested heavily in its basketball and baseball facilities.
Texas A&M’s facilities, while impressive, are generally smaller in scale compared to Texas’. However, A&M has still made significant strides in recent years, including the multi-million dollar renovation of Kyle Field, which is one of the largest and most impressive stadiums in the SEC. Texas A&M’s new football facilities, including its football operations center, have bolstered the program’s ability to compete at the highest level.
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