Big 12 Teams Getting a New Tool in the Arms Race

Revenue sharing is reshaping the Big 12 and leveling the playing field for programs that historically trailed others in funding.

With the $2.8 billion House v. NCAA settlement coming into effect July 1, schools in the league can distribute up to $20.5 million annually directly to athletes. That money can grow by about 4% each year.

Big 12 institutions like Baylor and Texas Tech stand to benefit most. Their leadership in recent seasons, especially in NIL deals and program momentum, positions them to maximize this payout model. That funding could narrow gaps with wealthier peers in Texas and secure parity in recruiting and athlete retention.

Houston offers an intriguing case. Although its athletic budget is among the smallest in the Power Four, the university plans to spend the full $20.5 million cap in 2025–26. Roughly 68–69% of that will go to football, with 23–25% prioritized for men’s basketball.

Remaining funds will support women’s sports and others. That allocation reflects the Cougars’ rise under Kelvin Sampson and their recent national relevance.

Fans and media alike sense the landscape changing. Coaches in other conferences have begun calling for stricter salary limits and more transparent models, arguing that unchecked spending by a few schools threatens competitive fairness.

This shift marks a major departure from the Big 12’s earlier revenue model, which kept richer schools at an advantage through unequal television payouts. The new structure forces programs to adapt quickly, balancing NIL-clearinghouse compliance, Title IX mandates, and scholarship-versus-roster limits.

At its core, revenue-sharing offers smaller or mid-tier Big 12 schools a path to compete more sustainably. The window to capitalize on this change is now.

How schools choose to distribute funds, especially between revenue sports like football and basketball, will define league dynamics in recruiting, depth, and long-term competitiveness.