The University of Texas at Austin’s athletic department, home to the Texas Longhorns, has faced significant financial challenges in recent years, particularly during the COVID-19 pandemic. In the 2020 fiscal year, the department experienced a substantial revenue decline, with ticket sales dropping from $67.1 million to $58.5 million, and income from royalties, licensing, advertising, and sponsorships falling by $8 million to $39.1 million.
To mitigate these financial strains, the department implemented several cost-cutting measures, including laying off 35 staff members, furloughing 11, and eliminating 35 vacant positions. Additionally, temporary salary reductions were enforced across various staff levels, collectively saving approximately $13.1 million.
Despite these efforts, the department’s debt obligations remained substantial. In the 2024 fiscal year, Texas Athletics reported record revenues of $331.9 million and expenses of $325 million, marking the first time a Division I program surpassed $300 million in operating expenses. A significant portion of these expenses was allocated to debt service, totaling about $79.7 million, a substantial increase from the previous year’s $26 million. This increase was primarily due to a $43 million payment on the Moody Center, funded through contributions, and additional internal lending paydowns.
These financial challenges underscore the ongoing pressures faced by collegiate athletic programs, even those with historically strong revenue streams like the Texas Longhorns. The department’s efforts to balance revenue generation with prudent financial management continue to be crucial in navigating these economic hurdle
