June 24, 2025

Texas A&M Cuts Nearly $10 Million from Athletics Budget

News Summary

In response to the House v. NCAA settlement, Texas A&M Athletics will be cutting nearly $10 million from its budget. The department aims to increase scholarships for student-athletes while reducing expenses and staff, addressing the implications of the new name, image, and likeness (NIL) regulations. Despite generating significant revenue from its athletics programs, the need to distribute funds among athletes necessitates these budget reductions. A focus on compliance and sustainability will shape the future of Texas A&M Athletics amidst changing regulations.

Texas A&M Moves to Cut Nearly $10 Million in Athletics Budget Amid NIL Changes

College Station, Texas – Texas A&M Athletics is set to implement budget cuts nearing $10 million in response to the House v. NCAA settlement which mandates that universities compensate their student-athletes. These adjustments come as the athletics department aims to navigate the complexities of an unregulated market created by recent changes in name, image, and likeness (NIL) regulations.

Budget Reductions and New Funding Strategies

Athletic Director Trev Alberts has outlined plans that include increasing scholarships for student-athletes while simultaneously cutting expenses and staff. The restructuring is designed to ensure the sustainability of college athletics, with Alberts noting the intention to establish a new position that will focus on managing the ramifications of NIL.

As per budget reports, Texas A&M’s athletics department generated $266.4 million in operating revenues during fiscal year 2024, with expenses totaling $243.7 million, resulting in a profit of $22.7 million, primarily due to the football program. However, with new revenue-sharing agreements demanding $20.5 million to be distributed among athletes, the department has identified significant cuts to maintain financial health.

Details of the Expected Cuts

The budget reductions will include:

Approximately $1 million in expenses related to student-athletes.
Roughly $2 million in cuts spread across sports teams, equivalent to 2-8% of their budgets.
Nearly $4 million from administrative and support staff cuts.
Discontinuation of $1.8 million allocated for educational expenses under the Alston Awards.

To encourage compliance with these new financial demands, the department is also preparing for potential revenue influxes from various sources, including $5 million in additional support from the 12th Man Foundation and $12.5 million from a new media rights agreement.

NIL and Impact on Scholarships

One of the key aspects of the settlement involves significant increases in scholarship availability. Subject to Southeastern Conference (SEC) approval, Texas A&M is expected to boost its scholarship capacity from 255 to 410 by the 2025-26 academic year. The changes will allow the football team’s roster to expand from 85 to 105, baseball scholarships to increase from 11.7 to 34, softball from 12 to 25, and volleyball from 12 to 18.

To manage the intricacies of the new NIL landscape, Alberts plans to hire an associate athletic director specifically tasked with overseeing NIL strategies, reflecting a shift in how the athletics department will approach athlete compensation moving forward.

Context of the House v. NCAA Settlement

The House v. NCAA settlement emerged from a class-action lawsuit requiring universities to pay a total of $20.5 million to student-athletes out of revenue-sharing agreements. This ruling was finalized by a federal judge earlier this month and signifies a notable shift in how collegiate athletics across the nation will operate regarding athlete compensation.

Despite these financial challenges, Texas A&M’s rich alumni support and investment in NIL and recruiting are expected to play a crucial role in ensuring the department’s long-term success. Alberts has acknowledged previous overstaffing in the executive ranks of the athletics department, and these budget reviews are partly a preemptive measure in anticipation of the settlement’s implications.

Future Outlook

Alberts is committed to modernizing the department while ensuring the sustainability of Texas A&M Athletics in this evolving landscape. As adjustments are made, the athletics department aims not only to comply with new legal frameworks but also to capitalize on the opportunities presented by increased athlete compensation.

Overall, Texas A&M’s forthcoming budget cuts reflect significant changes that will shape the university’s athletics landscape, driven largely by changes in the regulatory environment surrounding college sports.

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Author: STAFF HERE COLLEGE WRITER

The COLLEGE STATION STAFF WRITER represents the experienced team at HERECollegeStation.com, your go-to source for actionable local news and information in College Station, Brazos County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Brazos Valley Fair & Rodeo, Chilifest, and Aggie Muster. Our coverage extends to key organizations like the Bryan-College Station Chamber of Commerce and United Way of the Brazos Valley, plus leading businesses in education, biotechnology, and retail that power the local economy such as Texas A&M University, Fujifilm Diosynth Biotechnologies, and H-E-B. As part of the broader HERE network, including HEREAustinTX.com, HEREDallas.com, HEREHouston.com, and HERESanAntonio.com, we provide comprehensive, credible insights into Texas's dynamic landscape.

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