The University of Houston is making a lot of noise about being added to the Big 12. Cougar Nation wants a seat at the grown-ups table and adding them makes all the sense in the world with one exception; economics.
UH had to subsidize their athletic program to the tune of more than $25 million in 2015. That ranks as the seven-largest subsidy. Only 12 schools (including Texas and Oklahoma) did not have to subsidize their programs.
The UH athletic program took in $44.8 Million (62nd in the nation). James Madison and South Florida produced more revenue for their respective schools. It’s also $30 million less than Iowa State who had the smallest revenue in the Big 12 among public universities.
It does not take a Noble Prize winner in economics to understand who pays for these “subsidies”, The university has increased tuition 22 percent between 2011-12 and 2015-16. Students and fans of the University of Houston might have a different opinion on the value of joining the Big 12 when confronted with tuition costs that are already higher than UT or Texas A&M.