TLDR: The University of Texas reported a record $271 million in operating revenue for its athletics program in the 2023 fiscal year, as revealed by their annual financial report to the NCAA. Texas athletic director Chris Del Conte attributed this substantial financial success to factors including the school’s inaugural year at Moody Center, effective work by the development team in obtaining both restricted and unrestricted donations, and a new media rights agreement with Learfield. The athletic department’s major revenue streams included $183 million generated by the football program and significant contributions from sponsorships, licensing, and fundraising efforts. As a result, the school has comfortably covered expenses totaling $232 million, including a surplus of $39 million. With the upcoming transition to the SEC, it anticipates even greater revenues despite the loss of the Longhorn Network. The recent record-setting revenue could pave the way for a salary increase for head football coach Steve Sarkisian, who recently signed a seven-year contract extension.

In a landmark year for the University of Texas, the athletics department reported an unprecedented $271 million in operating revenue for the 2023 fiscal year. This notable achievement was highlighted in the school’s annual financial report to the NCAA and examined by USA Today. As the director of athletics, Chris Del Conte attributes this financial triumph to the exceptional support from the university’s fan base, alongside key strategic moves in facility investment and media partnerships.

Central to this financial upswing was the multisector boon of revenue generators, with football at the forefront, contributing a substantial $183 million. This profit remarkably left a $39 million surplus after meeting all expenses of the athletic program, which tallied up to $232 million. Within these expenses, $40.3 million was attributed to combined coaches’ salaries and bonuses across all sports. Men’s basketball added $23 million to the total, while baseball contributed $5.9 million.

The surge in revenue is part and parcel of deliberate development efforts, including the Moody Center’s inaugural year and a newly solidified media rights agreement with Learfield. This coupled with enhanced sponsorships, licensing, and strategic fundraising efforts accounting for $54.7 million and an $86 million fundraising corpus, underpins Del Conte’s strategy. Notably, $11 million marks the annual rise in donations alone, highlighting robust community backing for the Longhorns.

As the University of Texas prepares to transition into its inaugural SEC season, projections for the athletics department’s future success look promising. “Our next year should be even stronger,” commented Del Conte, with anticipations of further growth in developmental funding, notwithstanding the cessation of the Longhorn Network—a revenue generator up to this point. The network’s conclusion signals the end of a longstanding chapter, yet the prospects of competing in the SEC open new financial fronts.

The financial robustness ties seamlessly into contract negotiations for head football coach Steve Sarkisian. As Del Conte confirms, plans are underway to detail a raise for Sarkisian after steering the Longhorns to the Big 12 championship and their first-ever College Football Playoff presence. Sarkisian’s contract, extended to seven years, augurs well for the coach whose incentives previously totaled $300,000, on top of a base salary of $5.6 million, indicative of Texas’s commitment to retaining top talent.