Texas A&M Aggies’ 12th Man Foundation Losing Revenue Amid Jimbo Fisher Buyout
The Texas A&M Aggies’ 12th Man Foundation, a cornerstone of the university’s athletic fundraising efforts, is grappling with significant financial challenges following the unprecedented $77.5 million buyout of former head football coach Jimbo Fisher. This financial strain is compounded by a series of strategic decisions and external factors that have impacted the foundation’s revenue streams.
The Jimbo Fisher Buyout: A Historic Financial Obligation
In November 2023, Texas A&M University made the monumental decision to part ways with Coach Jimbo Fisher, incurring a record-breaking $77.5 million buyout—the largest in college football history . Athletic Director Ross Bjork clarified that this expenditure would be covered exclusively through funds from the athletic department and the 12th Man Foundation, without the use of public dollars .
The buyout was structured with an immediate payment of approximately $19.3 million due within 60 days, sourced from unrestricted contributions within the 12th Man Foundation. The remaining balance would be paid over time through the athletic department’s revenues and adjusted operating budget .
The financial commitment to Fisher’s buyout has strained the 12th Man Foundation’s resources. In the wake of the buyout, the foundation has faced declining revenue streams, particularly in ticket sales and donor contributions. For instance, during the COVID-19 pandemic, the foundation reported a $36 million decrease in revenue related to ticket sales for football, basketball, and baseball .
To mitigate these challenges, the 12th Man Foundation has implemented strategic adjustments, including discontinuing the 12th Man+ Fund, a Name, Image, and Likeness (NIL) initiative. This decision was made to ensure compliance with IRS regulations and to protect the foundation’s nonprofit status . While the foundation plans to continue supporting NIL opportunities, it will do so through expanded marketing outreach using unrestricted annual fund contributions.
The financial repercussions of the Fisher buyout extend beyond immediate expenditures. The foundation’s ability to fund scholarships, facility improvements, and other athletic initiatives may be compromised if revenue streams do not recover. Athletic Director Ross Bjork emphasized the importance of growing revenues through new television deals and sponsorship contracts to offset the financial burden .
Moreover, the discontinuation of the 12th Man+ Fund may impact the foundation’s ability to attract top-tier donors who prefer tax-deductible contributions. This shift necessitates a reevaluation of fundraising strategies to maintain financial stability.
The Texas A&M Aggies’ 12th Man Foundation is navigating a complex financial landscape marked by the historic Jimbo Fisher buyout, declining revenue streams, and strategic adjustments to comply with regulatory standards. While the foundation remains committed to supporting Aggie athletics, its long-term financial health will depend on the successful implementation of new revenue-generating initiatives and the restoration of donor confidence.
