The University of Houston’s athletic department ran a $9-10 million deficit in its first year in the Big 12. However, financial relief is coming through a university loan and increased conference revenue sharing, with full payouts expected by 2026.
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The University of Houston athletic department operated at a loss of $9–10 million in its first year as a Big 12 Conference member. But financial relief—a loan from the university's endowment—not from donations or student fees—is on route.
A recent Sports Business Journal article emphasized the rising expenses of playing in a Power Four conference and UH's expanding income potential.
The Big 12 income distribution already brings UH $18 million yearly, but after the university qualifies for a full share of conference earnings, that number will rise to $40 million in 2026.
UH Chancellor Renu Khator emphasized last summer, when Eddie Nuñez took over as athletic director, that the university would not hike student fees to offset financial constraints. Rather, the school intends to double the athletic department's budget using other income sources.
"I believe athletics should have the same tools I observe other Big 12 teams have," Khator said. "How will we have the tools we need to succeed without resources?"
UH has the lowest athletic budget among Power Four conference schools, running just over $80 million yearly—much below its new Big 12 counterparts.
The shortfall emphasizes the financial difference UH has to address if it is to remain competitive at the top levels of collegiate sports. University administrators remain hopeful about UH's long-term viability in the Big 12 despite expected higher income.
