In the 2023 fiscal year, the University of Texas Athletics Department reported a record-breaking operating revenue of $271 million, marking a significant increase from the previous year.
This substantial growth underscores the department’s financial strength and its pivotal role in collegiate sports.
Revenue Breakdown
The impressive revenue was primarily driven by several key areas:
- Football Program: As the cornerstone of the department’s income, the football program generated $183 million in operating revenue, contributing to a $122 million surplus over operating expenses.
- Contributions: Donations saw a significant increase, rising by $11 million to reach nearly $86 million.
- Sponsorships and Licensing: Revenue from sponsorships, licensing, royalties, and advertising grew by $10.2 million, totaling $54.7 million.
- Ticket Sales: Ticket sales experienced a $5.7 million increase, amounting to $63.3 million.
Operating Expenses
The Athletics Department’s operating expenses totaled just over $232 million for the 2023 fiscal year.
These expenses were allocated across various areas:
- Coaching Salaries and Benefits: $40.3 million
- Support Staff and Administrative Compensation: $36.7 million
- Facilities Debt Services and Leases: $26.9 million
- Athletic Student Aid: $13.7 million
- Game Expenses: $13.5 million
- Team Travel: $12.4 million
- Other Operating Expenses: $9.1 million
- Severance Payments: $8.3 million
- Fundraising, Marketing, and Promotion: $7.2 million
- Recruiting: $4.5 million
- Student-Athlete Non-Travel Meals: $3.9 million
- Game Guarantees: $3.7 million
- Sports Equipment, Uniforms, and Supplies: $3.4 million
- Medical Expenses and Insurance: $2.2 million
- Sports Camp Expenses: $1.6 million
- Spirit Groups: $1.4 million
- Memberships and Dues: $507,816
Factors Contributing to Financial Growth
Several factors contributed to the Athletics Department’s financial success:
- Football Program Performance: The football team’s strong performance, including a Big 12 championship and a berth in the College Football Playoff, significantly boosted revenue.
- Facility Enhancements: The opening of the Moody Center, a new basketball arena, and improvements to other athletic facilities attracted increased attendance and engagement.
- Media Rights Agreement: A new local multimedia rights deal with Learfield provided additional revenue streams.
- Increased Donations: A concerted effort by the development team led to a significant rise in both restricted and unrestricted gifts.
Future Outlook
Looking ahead, the Athletics Department anticipates continued financial growth, especially with the upcoming transition to the Southeastern Conference (SEC) in July 2024. This move is expected to enhance revenue through increased media rights deals and conference distributions.
However, the department also faces challenges, including the wind-down of the Longhorn Network, which previously contributed approximately $15 million annually.
Despite these challenges, the department’s strategic investments and strong fan support position it well for sustained success.
In summary, the University of Texas Athletics Department’s record-breaking revenue in the 2023 fiscal year reflects its robust financial health and the significant impact of its sports programs on the university’s overall success.
