THE BUSINESS OF COLLEGE ATHLETICS

Understanding the Financial Engine Behind College Sports

The Multi-Billion Dollar Business of College Athletics

College sports are no longer just about competition on the field; they are a multi-billion-dollar business that drives revenue, enrollment, and national recognition for universities. Texas Tech must strategically position itself in this changing financial landscape to compete at the highest level.

How Money Flows in College Athletics

College athletics generate revenue from several key sources:

TV Contracts & Media Rights

The largest source of revenue for major programs, TV deals provide billions in funding.
Conferences with lucrative TV contracts (like the SEC and Big Ten) distribute hundreds of millions to member schools.

Donations & Fundraising

Boosters and alumni play a crucial role in funding athletic programs through direct contributions.
Organizations like the Red Raider Club and the Matador Club raise funds specifically for Texas Tech Athletics.

Sponsorships & Licensing

Corporate sponsorships, apparel deals, and licensing agreements contribute significant revenue.
Brands seek partnerships with high-visibility programs, further increasing their financial power.

Ticket Sales & Game-Day Revenue

Successful teams drive attendance, increasing revenue from ticket sales, concessions, and merchandise.
Packed stadiums and competitive teams lead to stronger TV ratings, reinforcing the cycle of exposure and financial growth.

NCAA & Conference Distributions

Schools receive payouts based on conference TV deals, NCAA Tournament appearances, and bowl games.
The most successful programs secure the largest shares, allowing them to reinvest in recruiting and facilities.

Revenue Sharing: The Game-Changer

Starting in July 2025, college athletes will begin receiving direct compensation from universities, shifting the financial model of college sports. This shift will impact Texas Tech in several critical ways:

Annual Revenue Share Cap: Schools will be allowed to allocate up to $20.5 million per year in direct athlete compensation.
Football & Men’s Basketball Dominate: Revenue-sharing funds will be distributed in proportion to the revenue each sport generates. Football will receive ~74% of total funds, with men’s basketball receiving ~18%.
No More Collectives: Boosters and donors will still be critical, but funding must be funneled through university channels rather than independent NIL collectives.
Competitive Disparity: Schools that fail to raise enough funds will struggle to attract and retain top talent, falling behind in recruiting and performance on the field.

Why Football and Basketball Drive Everything

Realignment decisions, financial viability, and national exposure are all centered around football and men’s basketball. These sports generate the majority of athletic department revenue and dictate a school’s standing in the realignment conversation.

Football Brings the TV Deals:
- Conferences are structured around football success, determining TV contract values and exposure.
- Schools with strong football programs (like Alabama and Georgia) command massive national audiences, securing long-term financial stability.
March Madness = Big Money:
- The NCAA Tournament is a cash cow, with conferences receiving payouts for every game their teams play.
- A deep tournament run can generate millions in additional revenue for a university.
Realignment = Survival of the Fittest:
- Schools with high TV ratings, strong donor support, and successful teams will be first in line for super conferences.
- Texas Tech must continue to grow its national brand to ensure inclusion in the next round of realignment.

Texas Tech’s Financial Strategy Moving Forward

Texas Tech Athletics must take proactive steps to secure its place among the elite programs in college sports:

Increase donor contributions to help fund revenue sharing and athlete compensation.
- Our athletic facilities are already among the best in the nation, thanks to recent renovations across basketball, baseball, track, and football—completed within the last four years. While other schools are still raising funds for facility upgrades, Texas Tech is in a prime position to focus on what truly matters—investing directly in our athletes. This is where many programs will fall behind, but with the unwavering support of our alumni and fans, we can lead the way. Every contribution, no matter the size, makes a difference—even $10 a month can have a lasting impact. Stand with us and help build a championship future.
Maximize TV exposure by winning games and post-season runs.
Ensure a competitive football and men’s basketball program to strengthen realignment positioning.
Optimize sponsorship and licensing deals to boost financial sustainability.

The Future is Now—We Need You

The financial reality of college athletics is changing faster than ever. To remain competitive, Texas Tech must embrace this transformation with bold investments, strategic planning, and unwavering support from the Red Raider community.

Texas Tech has a plan. We’re ready to compete. But we need you.

Join us in shaping the future of Texas Tech Athletics.

CONTACT

P.O. Box 87
Lubbock, TX 79408

info@matadorclub.org

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West Texas Matador Club, Inc., is a Texas nonprofit corporation doing business as The Matador Club. It is recognized by the Internal Revenue Service as an organization exempt from federal income tax under Section 501(c)3 of the Internal Revenue Code of 1986, as amended.