The Texas Longhorns are stepping into a new financial era in college athletics - and like many top-tier programs, they’re doing it with eyes wide open and a calculator close at hand.
With the NCAA's amateurism model now officially in the rearview mirror, universities can share revenue directly with athletes. That shift, combined with expanded scholarship limits, is reshaping the economics of college sports. But for Texas, the real financial impact of these changes hasn't fully hit - yet.
According to the Longhorns’ latest NCAA financial report for the 2025 fiscal year, Texas spent just $3.2 million on revenue sharing. That number may seem modest, especially in light of the sweeping changes across the college landscape, but there’s a reason for the low figure: the new revenue-sharing rules didn’t go into effect until July 1, and the fiscal year wrapped up just two months later, on August 31.
Still, the Longhorns reported a $23.3 million deficit - and that gap wasn’t driven by revenue sharing. Instead, the bulk of the shortfall came from the program’s high-profile move from the Big 12 to the SEC.
When Texas and Oklahoma made the leap to the SEC a year earlier than originally planned, there was a financial trade-off. The early exit meant the two programs received a reduced media rights payout - just $12.5 million each - while the other 14 SEC schools pulled in $60.1 million apiece. That’s a steep price to pay for getting a head start in college football’s most powerful conference, but it’s a move Texas believes will pay off in the long run.
Come fiscal year 2026, the Longhorns and Sooners are set to receive their full share of the SEC’s media rights revenue. That’s also when the full weight of revenue sharing will start to show up in the books.
Texas athletic director Chris Del Conte has made it clear: the program is all-in on maximizing its revenue-sharing potential to stay competitive in recruiting. According to Rob Novak, Texas’ chief financial officer, the school’s revenue-sharing cap is $18 million - not the $20.5 million often cited. That’s because schools that expand scholarships under the new rules, as Texas has, take a $2.5 million reduction in their revenue-sharing cap.
It’s not just the total amount that matters - timing plays a big role too. At Texas, revenue-sharing payments vary by sport and athlete enrollment date.
Some football players who enroll early may sign 13-month deals. Basketball players might be on 10- to 12-month contracts.
And with the transfer portal opening in January, the timing of football payments can get even trickier.
“They need a new calendar,” Novak said, pointing out that some athletes’ agreements are split across two revenue-sharing cap years. The goal, he added, is to eventually standardize as many 12-month contracts as possible to bring consistency to the process.
Looking ahead, Texas’ revenue-sharing spending is expected to climb sharply in the next financial report. But that increase should be matched - and likely exceeded - by a major boost in SEC media rights revenue.
“There will definitely be a lot of benefits from it,” Novak said of the SEC move.
For now, Texas is navigating the early stages of a new financial model in college athletics. The full picture is still coming into focus, but one thing’s clear: the Longhorns are positioning themselves to thrive in this new era - even if it means enduring a few growing pains along the way.