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Get ready to start raking in the cash, UH

Money, money, money.

As the athletic director at Texas, Chris Del Conte is the CEO of one of the richest college athletic departments in the nation. He also knows what it’s like to have to make every penny count.

At TCU, Del Conte oversaw the school’s transition from the Mountain West to the Big 12 in 2012. As a member of the Mountain West, part of the so-called Group of Five, TCU never received more than $2 million in annual payout. So, when the Horned Frogs joined the Power Five, a change of address to the high-rent district of college athletes, you can imagine the shock of a few extra zeroes in the bank statement.

And that was before TCU became a fully vested member in its fourth year in the Big 12.

“Not right away, but there was for sure,” Del Conte said of the impact of an increased revenue flow for the Fort Worth private school. “The economics changed completely. There’s a big jump.”

A similar increase in revenue awaits the University of Houston, which along with BYU, Cincinnati and Central Florida, could join the Big 12 as early as 2023.

Upon entry, UH won’t see anywhere close to the $42.6 million the Big 12 announced Friday on the final day of its spring meetings, but the not-yet-announced revenue distribution for the incoming schools will be a considerably more than the current setup in the American Athletic Conference.

UH received $8.52 million as part of its annual revenue payout from the AAC, according to tax documents for the 2020-21 fiscal year. That was the second-highest total among AAC schools behind Cincinnati ($9.44 million), according to the Orlando Sentinel. UH’s revenue payout was nearly double the $4.43 million in 2021 and $4.354 million in 2020.

Once UH joins the Big 12, it can expect a similar framework for revenue payouts as TCU and West Virginia, the last two teams to join the league in 2012. The two schools received staggered shares for three years, receiving 50 percent in Year 1, 67 percent in Year 2 and 84 percent in Year 3 before becoming fully vested in the fourth year.

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What could the revenue payout look like for UH? Based on this year’s Big 12 payout of $42.6 million — much of that coming from TV revenue — and again the following two years, which would represent UH’s first in the league. That would translate into at least $20 million in Year 1 and at least $26 million in Year 2. After that is unknown as the Big 12’s TV deal with ESPN and Fox is set to expire in 2025, which coincides with Texas and Oklahoma leaving for the Southeastern Conference.

Last summer, Bowlsby told Texas lawmakers that the remaining eight schools could lose 50 percent, or about $14 million per year, in TV revenue upon Texas and Oklahoma’s departure.

So that’s more than double the revenue early on, with the possibility of a significant drop that would put them close to where they are now. That’s a lot hinging on that next TV contract. I suspect the Big XII will be fine – we’re unlikely to run low on demand for college football and basketball on the tube – but it does suggest a bit of caution before going all in on whatever expensive new toys are out there. Good luck figuring it out, y’all.

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3 Comments

  1. Flypusher says:

    So how much of that $ stays in athletics and much would go to academics, infrastructure maintenance, etc.?

  2. C.L. says:

    College football ain’t nothing more than Triple A farm teams for the NFL. Soon as we admit that…

  3. […] See here for some background. We noted this possibility in April. As for the exit fees, UH will be able to afford it. […]