There were manifold reasons for Texas Longhorns and Oklahoma Sooners to join the Southeastern Conference on July 1, 2024. Perhaps the biggest one of all was obvious: the money. But has this move truly paid off? For now, it has led to some financial setbacks. However, in other aspects, the move has been beneficial.
The Reason Behind Texas and Oklahoma’s Reduced Earnings in the SEC
A report from the SEC reveals that the conference generated total revenue of $840 million in the fiscal year 2024, as indicated by its latest tax return. This is a decrease from the $853 million recorded the previous year.
Despite this, the SEC distributed $808.4 million among its 16 teams. This amount includes $790.7 million directly distributed from the conference office and an additional $17.7 million retained by universities that participated in the 2023-24 football bowl games.
Each school with full-year participation, excluding bowl expenses, received an average of $52.5 million.
The total distribution for the 14 schools that received full revenue shares was generated from television agreements, postseason bowl games, the College Football Playoff, the SEC Football Championship Game, the SEC Men’s Basketball Tournament, and the NCAA Championships.
However, Oklahoma and Texas, which joined the conference last July, each received $27.5 million. This left both programs $25 million behind the other SEC schools in revenue distribution.
The financial gap originates from the transition payments agreed upon during their early exit from the Big 12. Rather than receiving their full revenue share, the Longhorns and the Sooners were allocated funds derived from television agreements and refundable application fees remitted to the conference in a prior fiscal year.
Though Texas and Oklahoma’s transition to the SEC decreased overall revenue, this short-term financial sacrifice could pay off in the future.
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For now, however, the Longhorns and the Sooners are playing catch-up in the most competitive conference in college football. Will the benefits of joining the SEC ultimately outweigh these initial financial struggles? Time will tell.
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