The Texas One Fund, a nonprofit NIL collective supporting the University of Texas, has made significant strides in the world of college sports finance. In 2023, the collective raised nearly $10.5 million in revenue. Meanwhile, it spent over $13.3 million, according to its most recent tax return. This substantial financial activity underscores the growing influence of NIL collectives in shaping the landscape of college athletics.
Texas One Fund: A Financial Powerhouse
Originally established under the name *Horns With Heart*, the Texas One Fund has evolved into a financial powerhouse by consolidating four other Texas-focused collectives in late 2022. This strategic move has positioned the fund as a central player in the NIL space. The collective’s ability to raise nearly double the revenue compared to the previous year highlights its growing impact and reach.
Revenue and Expenditures
The Texas One Fund’s 2023 revenue of nearly $10.5 million came primarily from donations, which constituted the lion’s share of its earnings. Additionally, the collective generated $595,486 in sponsorship fees.
On the expenditure side, the fund spent more than $13.3 million. Significant allocations included:
- $11.7 million distributed to UT athletes
- $221,901 on advertising and promotion expenditures
- $333,503 on conferences and meetings
- $130,419 to rent event space at UT’s Clark Field
Almost $9 million of the distributions were facilitated through Opendorse, an NIL technology platform that also serves as a third-party settlement entity for numerous collectives. Opendorse received a fee of $621,548 for its services, as detailed in the IRS filing.
Key Personnel and Partnerships
The Texas One Fund’s operations are supported by key personnel and strategic partnerships. Charity Grady, the athlete director, received $138,461 in compensation last year.
Additionally, the Austin-based JHL Company was paid $230,998 for management and fundraising services.
Opendorse and Passes Collaboration
One of the notable partnerships is with Opendorse, which played a crucial role in distributing funds to athletes. The collaboration with Opendorse underscores the collective’s commitment to leveraging technology for efficient fund management.
In June, the Texas One Fund also became the first collective to sign a deal with Passes, a content creator platform backed by Jake Paul and Joe Montana. This groundbreaking collaboration involves 40 UT athletes across multiple sports, further enhancing the collective’s visibility and reach.
Challenges and Future Prospects
Despite its impressive financial growth, the Texas One Fund faces challenges, particularly in maintaining its nonprofit status. Recently, the multi-school BPS Foundation, considered the largest nonprofit NIL organization, announced its closure due to investigations by state and federal regulators.
This development raises questions about the future of similar nonprofit entities, including the Texas One Fund.
Regulatory Scrutiny
According to online records with the Texas Comptroller’s office, the Texas One Fund is exempt from state franchise and sales taxes but not from paying the hotel occupancy tax. The collective’s future as a nonprofit remains uncertain. It did not respond to an email seeking comment on this matter. However, its current trajectory suggests it is poised to raise increasing amounts of cash, potentially solidifying its position in the NIL landscape.
Impact on University of Texas Athletics
The Texas One Fund’s financial contributions have had a significant impact on the University of Texas athletics. For the 2022-23 academic year, UT reported receiving $86 million in athletic donations, the second-most of any public FBS school in the country. The collective’s efforts have undoubtedly played a role in this impressive fundraising achievement.
Football Season-Ticket Access
In August, the Longhorn Foundation announced that contributors to the Texas One Fund would be awarded Loyalty Points. These points entitle donors to better football season-ticket access.
This creates a direct link between NIL contributions and fan engagement. The innovative approach incentivizes donations and strengthens the bond between the university’s athletic programs and its supporters.
As the Texas One Fund continues to navigate the complexities of the NIL landscape, its influence on college sports finance is undeniable. With strategic partnerships, substantial financial contributions, and a focus on supporting UT athletes, the collective is well-positioned to shape the future of college athletics.
For more detailed information, you can read the full report on Sportico’s website here.
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