TEXAS

ATHLETICS OVERVIEW

Texas Athletics continues to seek ways to advance institutional goals and support the president in leading a university of the first
class. We do this by providing the best intercollegiate athletics program one that is committed to the universitys vision of a
disciplined culture of excellence that generates intellectual excitement, transforms lives, and develops leaders. Through
athletics, we work to innovate excellence, educate tomorrows leaders, and expand knowledge while serving a diverse society.
The information below outlines Texas Athletics efforts that are transforming lives for the benefit of society. Our work goes
beyond the Forty Acres to help truly change the world and advance The University of Texas and its global impact.

I
.

How Texas Athletics advances the mission of the university

Texas Athletics acts as the front porch to the university and aims to collaborate with the broader university to foster excellence
in the academic setting.

The University of Texas as a whole continuously works to raise money to support the mission of the university and uphold its
responsibility to all students. As a vital member of the university community, Athletics must do its part. This is the current
landscape for all higher education. It is the fiduciary duty of all administrators at all universities to help raise the necessary funds
to support the university, its mission and its activities. Thus, a focus on fundraising is a fundamental part of what intercollegiate
athletics programs must do to survive.

Our contributions to the university include:
$326 million in donations to the successful six-year Campaign for Texas, which raised $3.12 billion. Texas Athletics was
the second largest contributor across campus.
In 2013-14 more than $6.6 million in athletics revenue, which includes half of LHN revenue, was transferred to central
campus to fund academic initiatives. An additional $3.1 million was transferred for administrative fees. In total, Texas
Athletics gave more than $9.7 million to UT central campus.
Additionally, Texas Athletics pays all its own direct costs such as student-athlete scholarships, debt service, salaries,
fringe benefits, utilities, construction and maintenance costs.
In 2013, Texas Athletics began a fixed gift of UT Club royalties, with an escalator increase each year, to support the
library system. In 2013-14, we contributed $144,200 to keep our libraries open extended hours.
UTs Blanton Museum of Art will use $1 million generated from LHN to create a fund to underwrite the reinstallation of
its permanent collection.

II.

How Texas Athletics supports its student-athletes

Texas Athletics vision is to define what it means to be the worlds best intercollegiate athletics program, instilling the passion,
knowledge and character for all student-athletes to compete to win, to succeed academically, to achieve their dreams in life and
to contribute to society. We support all of our programs and work to provide them the resources to compete for championships
year in and year out. Everything we do is for our more than 500 student-athletes. Texas Athletics must increase its revenue to
sustain and allow our student-athletes to receive best-in-class support services and compete for championships. We need to
generate revenue to build and pay for facilities such as the Volleyball Player Development Center (practice facility), new Tennis
Facility and Texas Athletics Nutrition Center and cover additional, positive benefits for our student-athletes such as the full
cost of attendance, increased nutrition and potential name, image and likeness expenses.

1

TEXAS ATHLETICS OVERVIEW

For example, NCAA guidelines now allow institutions to provide full nutrition to student-athletes. Additional student-athlete
benefits include:
addition of a nutritionally balanced evening meal for all 500 plus student-athletes (from walk-ons to full scholarship)
approximate cost of $800,000 per academic year; and
an increase in nutrient-rich, whole food snacks available at Performance Nutrition Fuel Stations, providing all our
student-athletes the opportunity to restore and meet their increased nutrient needs cost of $250,000 for 2013-14.
New full cost of attendance payments to our student-athletes to ensure their scholarships cover all the federally
calculated costs to attend UT will cost $5,750 per student-athlete each year for a total cost of about $1.5 million.

Although Texas Athletics generates the most revenue of any athletics department, during the 2013-14 fiscal year Texas Athletics
had a net loss of $8.1 million. This was the first time since 1999-2000 that the department lost money. The reality is, Texas
Athletics does not have as much money as some think. Our two biggest revenue generators tickets and donations have
remained flat over the past five years. Thats $90 million out of our total $160 million in revenue that has remained flat.
Meanwhile, our overall expenses were up last year, largely due to the football coaches and athletics director transitions and
repayment of some of our debt. We expect to break even this year, even with the mens basketball coaching change and other
new expenses. We continue to be good stewards of the program. Furthermore, we are one of the few collegiate athletics
programs that is financially self-sustaining and contributes financially to student and faculty programs and academic initiatives.

III
.

Fundraising Strategy

We are expanding our overall fundraising strategy to build the foundation for future generations of Texas student-
athletes. This includes a renewed emphasis on philanthropic fundraising, endowments, a more robust and interactive
donor engagement program, an increased focus on communicating the impact of donations on student-athletes, and
building relationships nationally and internationally. This is in alignment with national trends as NCAA changes drive a
greater percentage of overall revenues to student-athlete benefits. In the long run, this will make each program more
self-sustaining.
Year to date, we have raised more than $9 million in philanthropic contributions with more than $2.2 million of that
raised for endowments. We have exceeded last years total Annual Fund contributions and surpassed the all-time
Annual Fund record.
Our endowment has grown in the last 18 months from about $26 million to just below $30 million. Our goal is to reach
$32 million of endowment by the end of the year.
In conjunction with the Texas Exes, we are reaching out to Longhorns across the state and the nation to broaden our
reach by hosting events in Washington D.C., Los Angeles, New York, Phoenix and more.
Our international strategy helps increase the footprint of The University of Texas globally. It allows us to build key
business and donor relationships that will positively impact UT both now and in the future. We also are working closely
with the International Office to help develop university business and research opportunities as well as athletics
opportunities. The university is supportive of Texas Athletics international strategy. Our efforts support the recognition
of UT as one of the leading research universities in the world. Athletics can play an integral part in this effort, and it can
pay big dividends for the university as a whole.

TEXAS ATHLETICS OVERVIEW

IV
.

Football Season Tickets

TICKETS
Texas Football is a significant source of revenue for Texas Athletics, representing almost 70 percent of the entire departmental
budget.
Football ticket prices for the entire stadium increased overall by an average of less than six percent. Some prices went
up more, some stayed the same, and some decreased in an effort to make the overall pricing structure more
representative of each seats full market value.
While the ticket price rose modestly, the Longhorn Foundation contribution level to keep current seat locations has not
changed in many years. Longhorn Foundation members are able to maintain their current donation while retaining
priority to renew seats. This is an advantage compared to many of our peer institutions.
We are now more accessible than ever. An entry-level football season ticket at $199 is now available. For the first time,
we also are offering extended payment plans for both season tickets and Longhorn Foundation contributions.
More than 92 percent of the approximately 57,000 public season tickets sold for 2014 are committed for the 2015
season. We have taken in $25.6 million in public football season ticket revenue so far this year compared to the overall
$23.6 million for all of last year.
These funds will be used to help offset increased scholarship costs now that we may pay full cost of attendance for our
student-athletes.

PARKING
Texas Athletics historically has not received any revenue for parking. In fact, Texas Athletics has paid the State and university
more than $1.2 million annually to use their garage facilities. Parking policy changes were in discussion for several years prior to
the implementation of the changes this year. In the fall of 2013, after two years of work, a Longhorn Foundation Advisory
Council committee recommended that Texas Athletics charge for parking beginning with the 2015 season.

Why changes in parking were made:
Though Texas Athletics paid more than $1.2 million annually to UT and the State for parking, up to 40 percent of these
permits went unused on game day. Over the past four years, only an average of 6,200 out of 10,000 Longhorn
Foundation parking permits were used per game. This system diverted funds from student-athlete support as Texas
Athletics pays UT Parking and Transportation Services and the State for use of the garages and lots. Although we
administer parking for the benefit of our fans, funds from parking do not generate revenue for Texas Athletics but rather
for the separate entities, which control the garages and garage pricing.
Construction projects on campus have reduced parking by nearly 1,000 spaces for the 2015 season. Many of these are
some of the best spaces near DKR-Texas Memorial Stadium.

Benefits of the new parking model:
This allows for previously unused parking spaces closer to the stadium to be available to more fans.
A minimum donation of $50 to the Longhorn Foundation provides members access to purchase parking. This is a new
benefit.

TRUE
We are increasing our customer service and providing our fans the opportunity to use a transparent system to add, drop or
relocate their seats. During our recent online TRUE process, for football more than 10,000 season ticket members logged on to
view their seats with the opportunity to add, drop or relocate. Fans purchased more than 3,000 extra tickets during this process.
Almost 4,500 seats were relocated for fans who chose to move. We have seen similar success and very positive feedback for
TRUE events in other sports as well.
3

TEXAS ATHLETICS OVERVIEW

V.

Tennis Facility

Facilities are a strong resource for Texas Athletics to attract and retain the best talent in the country. Facilities also provide a
valuable resource for our student-athletes to help Texas remain competitive on an international stage. We must continue to
build and maintain facilities to remain competitive with our peer institutions and recruit top coaching and student-athlete talent
to The University of Texas. Competition on the facilities front has been aggressive, and Texas Athletics must respond. This
requires raising the appropriate funds.

The addition of the UT Dell Medical School, while a positive for the university, has impacted Texas Athletics from a
logistics and facility standpoint. We welcome the medical school, but it has provided athletics with unprecedented
challenges. Funding is at the top of the list.
Athletics has been asked to commit to transfer an additional $50 million to the university based on future revenue from
ticket sales, media rights, merchandising and other sources. This $50 million is in addition to existing funding
commitments.
When the university removed the Penick-Allison Tennis Center in May 2014 to make way for the Dell Medical School,
the presidents office agreed to reduce that future $50 million commitment to $35 million as an offset to the loss of the
courts. However, as those future revenues have not yet occurred, and will not for several years, we have to fundraise
and pay the $15-17 million to construct the tennis facility. Athletics must develop a financing plan to build the courts
now when they are needed and raise the money to pay for the new tennis facility.
President Fenves supports Athletics efforts to raise money for the courts. Colleges and units on campus regularly raise
money for construction to support high priority projects and reduce the need to use future revenue streams.
We worked to find a location close to campus that would best serve our student-athletes. With their busy schedules,
time management is incredibly important. The new location is closer to DKR-Texas Memorial Stadium where academics,
nutrition, compliance, strength and conditioning and sports medicine all are housed.
Working with the university, we were able to secure a nearby location adjacent to baseballs UFCU Disch-Falk Field and
softballs Red and Charline McCombs Field. The facility is part of a total university project that includes a much-needed
parking garage on the west side of UFCU Dish-Falk Field and graduate student housing on the east side of McCombs
Field. Maintenance of the residential areas facing the neighborhood was requested by the neighborhood and supported
by the university.

VI.

Longhorn Band

The Longhorn Band continues to be an important Texas tradition in our overall gameday experience. We continue to
have a close relationship with the band.
We are collaborating with the Dean of the College of Fine Arts to develop and incorporate new technology so the band is
able to enhance our in-game experience while preserving and protecting the strong legacy and tradition of the Longhorn
Band.
Longhorn Band funding from Texas Athletics is greater than funding provided by all Big 12 schools and most every
college nationally, including Texas A&M, USC, Ohio State, Michigan, Notre Dame and Tennessee.
For the 2015 football season, as it has in the past, the full Longhorn Band will continue to perform at all home games
and will travel to the AT&T Red River Showdown vs. OU and TCU away games. We are in discussions to address Baylors
desire to neither host visiting bands (due to the reduced size of their stadium) nor send its band to road games.
The pep band will travel to South Bend for the Notre Dame game and to Iowa State and West Virginia away games.
4

TEXAS ATHLETICS OVERVIEW

VII.

There is an overall trend to send pep bands to away games so as to make available enough tickets for loyal fans. Tickets
for the band come out of the fan allotment we receive for away games. Some schools have reduced these allotments as
they have moved to smaller venues. As many of our fans travel with the team to away games, especially those in Texas,
this creates high fan demand.
We have great relationships and enjoy working with the Longhorn Band leadership Jerry Junkin and Scott Hanna.
Rob Carnochan left to pursue a better career opportunity at Miami.
Texas Football game in Mexico City

We still are discussing a potential football game in Mexico City. Nothing definite has been scheduled. We will not give up a home
game to play a game in Mexico City or anywhere else.

If we go to Mexico City, it only will be under the safest circumstances for our student-athletes, coaches, staff and fans. We will
not go unless it is a positive and safe atmosphere. The Dallas Cowboys, numerous NBA teams and all major entertainment acts
have played in Mexico City for years without issues. The NFL also is studying its options to play a regular season game in Mexico
City.

VIII.

Mens Basketball Game in China

The Pac 12 Conference approached Texas to play the 2015 season opener versus the University of Washington in China
because we are an internationally recognized university.
This event provides an unparalleled learning experience for our basketball team and the opportunity to tell our
universitys story on an international stage.
All expenses for our teams travel will be covered by the Pac 12 and the event sponsors.
The trip includes a visit to the Alibaba campus for both teams on Chinas busiest shopping day of the year.
The game will be televised nationally on ESPN as our tip-off game of the season.
Our student-athletes, coaches and staff will have an educational prep course through student services/academics that
will prepare them for the culture and conversation they will encounter in China.
An academic counselor will travel with the team to ensure the team meets their academic commitments.
We are working closely with the International Office on this trip as their business goals align closely with those of Texas
Athletics. In China, we will have the opportunity to interface and work together.
The Texas Exes Flying Longhorns trip to China coincides with the game, and trip participants will have the opportunity to
attend the game and related events in China.