News Summary
The University of Houston is set to revolutionize collegiate athletics by introducing a revenue-sharing model, allocating $20.5 million to directly compensate college athletes starting in 2025. This initiative, approved by the NCAA, ends a series of antitrust lawsuits and highlights a shift in the financial structure of college sports. The university aims to distribute funds primarily across sports like football and basketball while also addressing Title IX considerations. The move is designed to ensure competitiveness and support for all athletic programs as UH plans to enhance its offerings and revenue in the coming years.
Houston
The University of Houston (UH) is set to make significant strides in collegiate athletics by allocating $20.5 million to pay college athletes as part of a new revenue-sharing model announced by athletic director Eddie Nuñez. This model, approved by the NCAA, will allow schools to directly compensate athletes starting from July 1, 2025, coinciding with the 2025-26 season.
This new revenue-sharing agreement concludes three antitrust lawsuits against the NCAA and establishes a framework over the next 10 years for distributing funds to athletes. For decades, college athletes were only able to earn income through external means, such as donor collectives, but this change marks a significant shift in how college sports operate.
In addition to UH, other Texas institutions such as the University of Texas and Texas A&M have also committed to participating in this new model, with plans to allocate the maximum revenue available to their collegiate athletes. Nuñez has expressed that UH aims to contribute the full $20.5 million during the first year, raising concerns as UH currently has the smallest athletic budget among the Power Four schools, at $88.2 million, which is substantially subsidized by the university.
The distribution details of the $20.5 million allocation remain unclear. Initial discussions suggest that a common approach could distribute 75% of the funds to football, 15% to men’s basketball, and the remainder to women’s basketball and Olympic sports. A potential model for UH could see around 68-69% going to football, 23-25% allocated to men’s basketball, and the remaining funds supporting other varsity sports.
Nuñez stresses that maintaining a competitive balance while ensuring adequate funding for football is a priority. Texas has also vowed to fully fund all 21 sports, with a specific allocation structure of 75% to football, 15% to men’s basketball, and 5% to women’s basketball. In contrast, Texas A&M plans to distribute the funding among six sports, emphasizing a broad-based athletics program to avoid overlooking any single sport.
The approval of the revenue-sharing model was finalized by Judge Claudia Wilken after extensive deliberation over the past year. The discussions for UH’s specific distribution plan have taken into account a variety of external factors and data from institutions within the Big 12 Conference and nationally. All scholarship athletes at UH are expected to receive some form of financial compensation as part of this initiative.
Furthermore, Title IX implications will play a critical role in how funds are divided amongst the various sports programs. UH has also been proactive in enhancing its women’s sports programs by appointing new coaches and evaluating its baseball program’s future, ensuring these decisions align with its revenue-sharing commitments.
As part of the new structure, UH plans to gradually introduce additional scholarships, which will help maintain competitiveness across its athletic offerings. The university will also explore innovative revenue opportunities through multimedia rights, merchandise sales, and ticket sales to offset some financial burdens involved in the revenue distribution. It is anticipated that UH will see a significant surge in revenue from the Big 12 beginning in 2026, which is projected to surpass $40 million.
The introduction of this revenue-sharing model marks a transformative moment in collegiate athletics, setting a precedent for how educational institutions navigate financial compensation and athlete support in the coming years.
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Additional Resources
- Houston Chronicle: UH and Texas A&M Revenue Sharing
- ABC13: UH Athletic Director on Paying Athletes
- Sports Business Journal: UH Athletics Revenue Sharing
- Houston Chronicle: Eddie Nuñez on Houston Athletics Changes
- Wikipedia: NCAA
Author: STAFF HERE HOUSTON TX WRITER
HOUSTON STAFF WRITER The HOUSTON STAFF WRITER represents the experienced team at HEREHouston.com, your go-to source for actionable local news and information in Houston, Harris County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Houston Livestock Show and Rodeo, Art Car Parade, and Chevron Houston Marathon. Our coverage extends to key organizations like the Greater Houston Partnership and Houston Area Urban League, plus leading businesses in energy and healthcare that power the local economy such as ExxonMobil, Schlumberger, and Houston Methodist. As part of the broader HERE network, including HEREAustinTX.com, HERECollegeStation.com, HEREDallas.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.
