University of Houston works to put an end to athletic department deficit

HOUSTON, Texas (KTRK) -- The University of Houston athletic department operated at a deficit in the Cougars' first year in the Big 12, but help is on the way.

The deficit between $9 million and $10 million will be addressed with a loan from the university to the athletic department. Funds will not come from donors but from a university endowment.

A report in the Sports Business Journal detailed the rising cost of competing in the Big 12, along with increased revenues.

After the upcoming fiscal year ends, UH will receive a full revenue share from Big 12 in 2026, which is a significant jump from the current $18 million for the last year to an expected $40 million going forward.

When Eddie Nuñez was hired as the new director of athletics last summer, UH chancellor Renu Khator stated again that UH would not make up athletic department deficits with more student fees.

Instead, the Cougars will work to double their athletic department budget with additional revenue streams. Khator told reporters she recognizes that UH athletics needs to significantly improve its annual budget to help Cougar teams compete against the best programs in the Big 12.

"I think athletics should have the same resources that I see other teams in my league in the Big 12 because if we don't have resources, how are we going to have the tools they need to be successful?" Khator said. "If we all want to win, then we've got to give them tools."

As UH entered the Big 12, the Cougars had the lowest athletic budget among all schools in the Power Four conferences at just over $80 million a year.

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