Introduction
In 2024, the University of Texas at Austin’s athletics department achieved a landmark year by setting school records for both revenue and expenses. This feat is not only significant on a financial level but also showcases the growing economic influence of college sports, particularly in a major powerhouse like Texas. To understand how Texas reached these new financial heights, we must examine multiple factors: the evolution of college sports, the university’s expansion efforts, the growing value of media rights, the increasing cost of operating top-tier athletic programs, and how specific programs within the athletics department contributed to the overall financial performance.
The Growing Economic Power of College Athletics
College sports have become an economic juggernaut over the last few decades. Revenue streams have expanded far beyond traditional gate receipts from ticket sales to include media rights, sponsorships, merchandise, and donations. For schools like Texas, which has some of the largest and most successful athletic programs in the country, the financial impact is profound. The growing media rights deals associated with college football and basketball, along with the expansion of the college football playoff and television networks, have directly contributed to the increased revenue for athletics departments across the country.
In particular, the University of Texas’s status as a member of the Big 12 (prior to their impending move to the Southeastern Conference in 2025) played a key role in their financial achievements. The conference’s lucrative media rights deals, combined with Texas’s prominent status, positioned the Longhorns to benefit significantly from broadcasting contracts, including appearances on national TV in high-profile games.
Record Revenue: Media Rights and Television Deals
One of the primary drivers behind Texas Athletics’ record revenue in 2024 was the escalating value of media rights. College sports, especially football, have become major content for TV networks. The Longhorns, with their storied history and massive fanbase, have always been in high demand. In 2024, the athletics department benefitted from a mixture of existing and new media contracts, particularly those related to football and basketball.
The Big 12’s television rights, which had already been lucrative, were set to increase as the conference expanded its media partnerships. These television deals have skyrocketed in recent years, with networks like ESPN and Fox securing multi-billion-dollar contracts for rights to broadcast college football and basketball games. For Texas, the exposure these deals bring — especially with their regular national television appearances — translates directly into increased revenue.
Additionally, Texas’s entry into the Southeastern Conference (SEC) in 2025 was a major factor in the increasing revenue from media rights. The SEC, already home to a host of college football powerhouses, generates a massive amount of television revenue, and Texas’s move into the conference is expected to bring even more financial gains. The shift was made with an eye toward both competitive and financial benefits, and the anticipation surrounding Texas’s entrance into the SEC only amplified revenue projections for the upcoming years.
Record Revenue: Sponsorships, Donor Contributions, and Merchandise
Alongside television rights, Texas Athletics capitalized on lucrative sponsorships and partnerships. Companies across various industries — from athletic wear to local businesses — vie for access to the Longhorns’ large, loyal fanbase. This increased the school’s revenue through corporate sponsorships, partnerships, and advertising. Texas also benefited from high-level donor contributions, as alumni and boosters see the success of the athletics program as a point of pride. These contributions support everything from stadium upgrades to scholarships for athletes, and they provide a significant source of revenue for the department.
Texas Athletics also achieved significant sales growth in merchandising. With a brand as powerful as Texas’s, merchandise sales — including jerseys, hats, and memorabilia — can generate millions of dollars annually. 2024 marked another record year for merchandise sales, in part due to high-profile seasons for the football team and other Texas sports. Fans across the nation are eager to showcase their school spirit, and Texas’s consistent athletic success boosts their commercial appeal.
Record Expenses: Increased Operational Costs
With great revenue comes great expense, and 2024 was no exception. The increasing financial success of Texas Athletics did not occur without a corresponding rise in operational costs. These costs, which cover everything from salaries to facility upgrades, have been climbing steadily as the university continues to improve its athletic programs and infrastructure.
A major component of Texas Athletics’ increased expenses is the growing cost of recruiting, scholarships, and salaries for coaches and staff. At the highest level of competition, universities like Texas are competing for the best talent. This includes not just student-athletes, but also high-caliber coaches, athletic trainers, nutritionists, and other key staff members. With high salaries for football coaches like Steve Sarkisian and basketball coaches, the financial demands of keeping a world-class program competitive have increased.
The same pressure to stay competitive has driven Texas to invest heavily in state-of-the-art athletic facilities. The Longhorns have continuously worked to enhance their football and basketball stadiums, their practice facilities, and their athlete housing. These massive infrastructure projects can run into the hundreds of millions of dollars. In 2024, Texas continued this trend, completing major upgrades to facilities such as Darrell K Royal–Texas Memorial Stadium and the Frank Erwin Center, as well as investing in their new football operations complex.
The Cost of a Growing Athletic Department
Another key driver of expenses is the expanded scope of Texas Athletics, which now includes more than 20 varsity sports. Operating this many programs requires significant investments in coaching staff, equipment, travel expenses, and other logistics. Each of these sports, from football and basketball to track and field, soccer, and swimming, brings its own set of operational costs. Many of these expenses come in the form of travel for competitions across the country, as well as stipends for athletes who receive scholarships.
Texas Athletics has long been known for its emphasis on excellence across all sports, not just football. This commitment to a broad-based athletic program requires substantial financial backing. For instance, Texas’s women’s athletics programs have seen significant investment and growth, particularly in volleyball and basketball, contributing to overall expenses.
Impact of NIL (Name, Image, and Likeness)
A relatively recent addition to the college sports landscape, NIL (Name, Image, and Likeness) rights allow college athletes to profit from their personal brand. While this has been a boon for student-athletes, it also represents a new category of expenses for athletic departments. Universities like Texas must navigate the complexities of NIL deals, ensuring compliance with NCAA regulations and potentially matching or facilitating deals to attract top talent.
Texas has been active in helping their athletes secure NIL opportunities, and this has added to the financial burden on the athletics department. From partnership management to ensuring compliance with regulations, Texas Athletics has had to increase staffing and resources devoted to NIL activities.
The Influence of Texas Football
No discussion of Texas Athletics’ financial performance in 2024 would be complete without addressing the influence of Texas Football. As the flagship program for the university, football drives the vast majority of both revenue and expenses. In 2024, the Longhorns were poised to have a competitive season in the Big 12, with strong ticket sales and attendance at games.
The success of the Texas Football team — both on the field and in terms of its commercial appeal — brought in substantial revenue from ticket sales, sponsorships, and merchandise. Football games at Darrell K Royal–Texas Memorial Stadium attract sell-out crowds, and the stadium’s premium seating areas, including luxury boxes and suites, bring in millions of dollars each year.
However, football also represents one of the largest expenses. Texas’s investment in its football program, including salaries for coaches, recruiting costs, and facility maintenance, is enormous. In 2024, Texas Football’s operational budget likely saw an increase, as the program aimed to stay competitive and continue attracting top talent in anticipation of their move to the SEC.
Moving to the SEC and Future Financial Projections
Texas’s decision to join the SEC, effective in 2025, will further amplify both the revenue and expenses for Texas Athletics. The SEC’s television contracts are among the richest in college sports, and joining the conference is expected to bring a financial windfall to Texas. The move to the SEC is also likely to bring increased visibility, bigger sponsorships, and more opportunities for merchandise sales. At the same time, Texas will face heightened competition, which could lead to even higher costs associated with recruiting, coaching salaries, and facilities.
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