The Big 12 Could Soon Be Doing the Houston Cougars a Major Favor
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The University of Houston athletic program just moved to a power four conference in the Big 12 over two and a half years ago in July 2023, but it will still take more time for the Cougars to fully adjust to a true power four budget and get their revenue up to par.
Houston entered the Big 12 with the lowest athletic budget among all power four schools at just over $80 million. While it has increased to an excess of over $90 million in 2024 and crossed over $100 million for the first time this year, more work is required. As an example, some of the top power four athletic budgets like Alabama are in excess of $200 million.
It is obviously not feasible to reach there, especially at the moment, but continued growth is needed to sustain the pace with fellow conference members. Houston was, in fact, operating at a deficit of roughly $10 million covered by their loans as the media and sponsorships caught up to the coaches’ salaries and conference fees. Revenue was at $88 million with expenses of $96 million.
The ultimate goal for Houston and athletic director Eddie Nuñez is to reach an annual budget of $160 million. Right now, they are still the lowest projected budget value of $91 million in 2025. There is an opportunity coming in order to help Houston in this area, thanks to the Big 12.
New Private Capital Deal Brings Millions
Great news likely came for Houston to help boost their athletic budget last week as the Big 12 conference is close to securing a private capital deal that would “infuse millions of dollars to conference members," according to a Yahoo! Sports report from Ross Dellenger.
RedBird and Weatherford Capital have been in talks with the Big 12 for this agreement that would bring more than $500 million to conference members as a strategic partnership with the teams and firms. Based on the report, schools will be able to opt in and accept upward of $30 million in capital if they choose to do so.
This deal does not force the Big 12 to give up any stake or equity. Big 12 commissioner Brett Yormark made it clear that the conference is not in the private equity business and believes in its growth. However, he was willing to make “strategic alliances” that could help create more value for the conference institutions. This deal looks to be going in that direction.
According to the Big 12, they will work together with RedBird to identify complementary investment opportunities to create more revenue streams. Currently, RedBird has already gotten over $145 million for the Big 12.
Houston will surely opt in to this deal once it becomes available. These are the kinds of opportunities that the Cougars have to pounce on. $30 million in capital would be a much-needed addition to UH.
Basketball head coach Kelvin Sampson mentioned how his team has no choice but to go to tournaments like the Player’s Era in order to secure crucial NIL funds. This capital deal should also be viewed through the same lens.
“The Big 12 Conference is in negotiations to create a multifaceted strategic business partnership with RedBird and Weatherford Capital that will focus on growing the commercial operations of the Big 12, while also providing an opt-in capital solution for our member institutions to take advantage of up to $500 million in capital,” the conference said.
Maanav Gupta is a staff writer for Houston Cougars on SI. He graduated from the University of Houston in the summer of 2025 with his bachelor’s in journalism and a minor in Spanish. Gupta spent three years at the student newspaper, The Daily Cougar, and also covered the 2025 Final Four and National Championship as Houston beat writer for College Basketball Review. He also has his own YouTube channel, Maanav’s Sports Talk, where he has interviewed professional athletes and broadcasters like Jim Nantz, Jose Altuve, J.J. Watt, Rich Eisen, and Alperen Sengun. Gupta was also a contributor to the Houston athletic program as a student. You can find Gupta on X, Instagram and TikTok @MGSportsTalk.