UNC athletic director Bubba Cunningham shared an open letter to Tar Heel fans and students Monday morning, addressing this month’s House v. NCAA settlement and its effects on the collegiate landscape.
The settlement, which was approved by U.S. Judge Claudia Wilken on June 6, requires schools to share up to $20.5 million in revenue with their student-athletes over the next year and pay a collective sum of $2.7 billion to former players who missed out on potential revenue opportunities. Additionally, all name, image and likeness deals valued at more than $600 will be subject to review and approval by a national clearinghouse. Enforcement of revenue share and NIL rules will be overseen by the College Sports Commission, a new group formed out of the settlement.
Cunningham described the settlement as “a significant evolution that will change our department’s financial model while providing greater financial opportunities for Tar Heel student-athletes.” Specifically, Cunningham noted that the majority of the $20.5 million in shared revenue intended for student-athletes will go to the school’s two revenue-generating sports: football and men’s basketball. Women’s basketball and baseball players will receive “some” revenue as well, according to Cunningham. The revenue share will increase by four percent each year, and the division of the funds will be re-evaluated annually.
Cunningham also said UNC is planning on increasing its scholarship allotment across all sports from 338 to 532, an increase of more than 57 percent.
“The ability to have more Tar Heels on full scholarship will greatly strengthen our athletics program and the student-athlete experience at Carolina,” said Cunningham.
As for the damages paid to past athletes who missed out on revenue, those sums will be funded by withholding revenue distribution to schools over the next decade. Cunningham said this will have a roughly $2 million annual impact on UNC.
Because of these sweeping changes, Cunningham said he expects the athletic department’s budget – which in the 2024-25 academic year was approximately $150 million – to grow by about $30 million for the 2025-26 year.
“To prepare, we have hired a new Chief Revenue Officer [Rick Barakat] to investigate and initiate new revenue opportunities,” wrote Cunningham, “including naming rights, field sponsorships and jersey patches, expanding football’s ‘Bell Tower Block Party’ to draw more fans, options to further optimize our relationship with corporate sponsorship Learfield partner Learfield and more aggressive ticket sales initiatives.”
Cunningham noted how the state of North Carolina’s gambling revenue may provide a boost to the athletic department, though he said his office will “continue to evaluate” its budget and spending for “cost-cutting opportunities.”
“Carolina remains committed to providing outstanding experiences and broad-based programming as we share revenue with teams and student-athletes who earn it,” Cunningham said. “As we begin this new era, one thing won’t change: our dedication to excellence and winning in and outside of competition.”
To read Cunningham’s full letter, click here.
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