UNC athletic director Bubba Cunningham shared an open letter to Tar Heel fans on Carolina’s official athletics website on Wednesday morning.
In the letter, Cunningham described imminent changes to the college athletics landscape expected once a settlement is finalized in the House v. NCAA case. The settlement, which will likely gain approval next spring, will end three lawsuits challenging NCAA rules about name, image and likeness guidelines as well as other payments to student-athletes.
Cunningham described four major changes which will be implemented during the 2025-26 academic year.
First, institutions will be allowed to share revenue directly with athletes. The money will be derived from a percentage of average revenue at schools in top conferences, such as UNC.
Second, the NCAA will limit roster sizes across all sports. According to Cunningham, this will drop the number of varsity athletes at UNC from “approximately 850” to 735.
Third, the NCAA will pay approximately $2.8 billion to athletes who played between 2016 and 2024 but who were not allowed to participate in NIL activities. This payout will be funded by withholding revenue distribution to schools over 10 years.
“The impact will cost Carolina roughly $1-2 million annually,” Cunningham wrote.
Finally, a new national clearinghouse will analyze any NIL deal worth more than $600 to validate its legitimacy.
“This structure should provide better transparency,” said Cunningham, “and help to level the playing field in recruiting.”
Cunningham’s letter also laid out Carolina’s path forward after the settlement is finalized. He described several imminent changes to the athletic department to boost its finances, some of which are already in place. For example, UNC recently expanded alcohol sales to events held at the Dean Smith Center and Carmichael Arena, when only outdoor venues had been able to sell it previously.
In the near future, Cunningham said fans can expect more corporate sponsorships for the athletic department, with more partner logos around venues and potentially on uniforms.
“We must create new opportunities and innovate and continue to have partners that support our mission of educating and inspiring through athletics,” he said.
In addition, Cunningham said the university is “examining ticket prices,” with the possibility of an added surcharge to benefit revenue sharing with athletes. Special event opportunities, such as the FC Series soccer matches played at Kenan Stadium during the last two summers, will continue to be explored. Cunningham added The Rams Club will be launching a new initiative soon which is “committed to continued excellence at Carolina through flexible support to meet future needs.”
“This is a pivotal time in the history of college athletics, as we are standing at the crossroads of amateurism and professionalism,” the athletic director said. “We are committed to sharing revenue, recognizing the teams that generate it and continuing to champion our long history of success. We appreciate the patience and support of our coaches, staff, alumni, donors and Carolina community through these changes. We are dedicated to continuing athletic excellence at UNC.”
To read Cunningham’s full letter, click here.
Featured image via Associated Press/Chris Seward
Chapelboro.com does not charge subscription fees, and you can directly support our efforts in local journalism here. Want more of what you see on Chapelboro? Let us bring free local news and community information to you by signing up for our newsletter.
Comments on Chapelboro are moderated according to our Community Guidelines