The Jimbo Fisher buyout is causing the Texas A&M Aggies’ 12th Man Foundation to lose money.
The termination of Jimbo Fisher as head coach of the Texas A&M Aggies football team in November 2023 marked a significant financial event in college sports history. The university agreed to a staggering $77.5 million buyout, the largest ever for a college football coach. This decision has profound implications for Texas A&M’s athletic department and its primary fundraising arm, the 12th Man Foundation.Sports Business Journal+2TPR+2Forbes+2The Texas Tribune+6Yahoo Sports+6SI+6
Fisher’s contract, extended in 2021, guaranteed him a total of $95 million through 2031. Upon his dismissal, the university was obligated to pay the remaining $77.5 million, regardless of future employment. The payment structure includes an immediate $19.3 million due within 60 days, followed by annual installments of $7.2 million through 2031 .Chron+2The Eagle+2Forbes+2Chron
The 12th Man Foundation, Texas A&M’s independent booster organization, is contributing significantly to the buyout. Unrestricted funds from the foundation are covering the initial $19.3 million payment. Athletic Director Ross Bjork emphasized that while the foundation is assisting with the upfront cost, the athletic department will handle the remaining payments through revenue growth and budget adjustments .ForbesAP News+4Athletic Business+4On3+4
As of June 2022, the 12th Man Foundation reported $239.5 million in net assets, with $112.2 million in endowment funds and $135.2 million in contributions for the fiscal year . Despite these robust figures, the sudden allocation of nearly $20 million for the buyout raises concerns about the foundation’s liquidity and its ability to fund future athletic initiatives.Yahoo SportsThe Eagle+1SI+1
The athletic department plans to manage the ongoing $7.2 million annual payments by increasing revenues through new television deals, sponsorships, and other income streams. However, this strategy necessitates careful financial planning to avoid compromising other athletic programs and facilities .On3+3Athletic Business+3Sports Business Journal+3
The financial commitment to Fisher’s buyout has sparked discussions about the sustainability of such large contracts in college sports. It also highlights the critical role of booster organizations like the 12th Man Foundation in supporting athletic programs, especially during financial upheavals.
In conclusion, while Texas A&M has outlined a plan to manage the financial ramifications of Fisher’s buyout, the situation underscores the delicate balance between competitive ambition and fiscal responsibility in collegiate athletics.The Texas Tribune+8On3
