Texas Tech Athletics Plans Revenue Sharing Strategy for Major Sports

Texas Tech University is preparing to implement a revenue-sharing model that prioritizes its football and men’s basketball programs, aligning with the financial contributions these sports generate for the department. With an estimated $20.5 million revenue-sharing distribution next year, more than 90% will be directed toward these two programs. Specifically, 74% of the funds will support football, approximately 18% will go to men’s basketball, and the remaining distribution will be divided among women’s basketball, baseball, and other sports. This allocation reflects the revenue-driven focus as Texas Tech navigates changes following the anticipated final approval of the House v. NCAA settlement.

Under the new terms, scholarship caps will be replaced with roster limits, allowing universities to potentially provide scholarships for every athlete. However, Texas Tech will keep its football scholarships at 85, the current limit, rather than increasing to the proposed 105. Athletics director Kirby Hocutt explained this decision stems from a desire to maximize revenue sharing and give coaches more flexibility. Adding scholarships would reduce funds available for distribution, prompting Tech to maintain existing limits across all sports, including baseball, which will stay at 11.7 scholarships for its 34-player roster.

The upcoming settlement, expected to take effect on July 1, has further financial implications. Texas Tech plans to discontinue its Alston awards—annual education-related benefits of up to $5,980 per student-athlete—after the 2024-25 academic year. Deputy AD Jonathan Botros emphasized that continuing these awards would detract from revenue-sharing allocations, which are now a priority. While flexibility remains key, Tech’s decision mirrors moves by other major athletic conferences, including the Southeastern Conference (SEC), which has also chosen to maintain the 85-scholarship limit for football.

When addressing financial sustainability, Hocutt pointed to NIL (Name, Image, and Likeness) opportunities as critical to supporting programs like baseball. With West Texas’ strong baseball culture, he expressed confidence in players’ abilities to attract NIL deals through regional support. NIL opportunities, which became legal in 2021, have transformed collegiate athletics, with donor-led collectives rising as key players in recruiting and retaining talent. The forthcoming settlement will further regulate NIL deals by requiring a fair-market-value assessment for offers above $600, overseen by Deloitte, the firm chosen to manage the clearinghouse.

While preparing for these changes, Texas Tech remains mindful of Title IX compliance, which requires equitable opportunities for men’s and women’s athletics. Though the settlement’s impact on Title IX remains unclear, Hocutt stated that Tech’s approach to revenue distribution aligns with other Power Four programs, ensuring strategic implementation. Despite financial challenges, Hocutt affirmed that Texas Tech will not consider cutting any of its 17 varsity sports, reinforcing the university’s commitment to maintaining a robust athletics program while navigating the complexities of collegiate revenue sharing.