Texas AD expects NCAA House settlement to raise expenses for athletic department by $11.5M per year

Texas athletic director Chris Del Conte outlined how UT’s athletic department finances will be affected by the House settlement.

The settlement, which comes after years of lawsuits from former college athletes over their lost earning power due to previous NCAA rules, was given preliminary approval on Monday. The NCAA and its member schools will pay roughly $3 billion to former athletes who did not retain their name, image and likeness rights while they were playing as part of the NCAA’s previous amateurism model.

Additionally, schools will directly start paying players through revenue sharing. Players currently capitalize on their NIL rights via endorsements and sponsorships along with deals with third-party booster collectives.

Texas athletic director Chris Del Conte said Friday that his athletic department expects to see its annual costs rise by over $11 million. (Photo by Michael Wade/Icon Sportswire via Getty Images)

In a letter to Texas boosters, Del Conte said that Texas is projecting to pay between $22 million and $23 million to its athletes as part of “NIL renumeration.” He also said that expenses for the athletic department will need a projected $11.5 million more annually.

“Texas Athletics is a self-sustaining unit of the university,” Del Conte wrote. “To ensure that we continue sponsoring championship-level programs in our pursuit to define what it means to be the world’s best intercollegiate athletics program, Texas Athletics will continue to rely heavily on the generosity of our valued donors coupled with revenue generation through media rights, sponsorships and ticket sales. The anticipated new NIL and scholarship benefits available to student-athletes are expected to rise on a year-to-year basis, with potential costs for additional scholarships estimated at $11.5 million annually in…

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Author : Yahoo Sports

Publish date : 2024-10-11 20:13:37

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