UNC to Distribute $20.5 Million Among Athletes Across Four Sports Programs

The Tar Heels will also expand the amount of scholarships available by approximately 200. The reforms come in reaction to the NCAA’s House settlement.

Beginning next month, the majority of North Carolina’s $20.5 million in revenue sharing will go to football and men’s basketball players. Athletics director Bubba Cunningham announced Monday that revenue sharing will also apply to women’s basketball and baseball athletes.

North Carolina will receive the maximum $20.5 million authorised by the House settlement with the NCAA, five major conferences, and former players. The deal enables revenue sharing with current athletes. It is up to each school to decide how to allocate the funds, though football and men’s basketball are likely to earn roughly 90% nationally.

Bill Belichick’s contract sheet, revealed in December, stated that football will receive $13 million in revenue sharing. That would be somewhat more than 63% of the total cap, which is less than the 75% sum slated to go to former football players under the settlement.

The revenue-sharing cap will rise by 4% yearly.

The deal imposes roster limits across all sports but eliminates scholarship limits. As a result, UNC will have fewer athletes but more players on scholarships. The Tar Heels are boosting their scholarship numbers from 338 to 532. The hikes will occur throughout UNC’s 28 sports.

UNC believes that its share of the $2.7 billion in backpay to athletes who were not permitted to benefit from their name, image, or likeness will be approximately $2 million per year for the next ten years. The NCAA is covering the costs by withholding a portion of its annual dividend.

Cunningham stated that UNC’s budget will increase by $30 million, or 20%, by next year. The Tar Heels’ budget is approximately $150 million. Rick Barakat has been named as UNC’s new chief revenue officer.He informed the school’s Board of Trustees that they are considering selling the name rights to Kenan Stadium, as well as sponsorships for different areas of the football stadium.

“You name it, we’re trying to turn over every rock and find new ways to drive revenue through athletics and the football program,” Barakat told reporters.

Cunningham stated that the institution has been “fairly conservative” in seeking new sources of money. The institution has just started selling beer and alcohol at football and men’s basketball games.

“Do you go to hard liquor?” Cunningham stated. “Do you make additional signs? Do you offer more naming rights? Are we going to get jersey patches? Can we generate digital or other types of content that can be monetised and sold to fans? We haven’t done some things in the past because we didn’t feel compelled to do so.”

“As a non-profit, if you will, we have always spent what we generated. So we now have an additional expense category. We need to consider how we can cover that category with what we can create. Are there any other expenses that we no longer need? Should we limit what we do?

UNC is preparing to renegotiate its deal with Learfield, which controls its multimedia rights. The agreement expires in 2029. While UNC is promised a royalty fee of at least $13 million per year from Learfield, Barakat said the school is hoping for a significant increase on its next arrangement before the bargaining window with Learfield closes Oct. 31.

“Ideally we would never get to that stage, and they’ll bring us a deal that we all feel really good about and we’ll extend,” according to him. “If not, we’re prepared to look at other opportunities.”

Several colleges, notably Ohio State, Oklahoma, and Texas A&M, have publicly indicated which sports they want to include in revenue sharing. Every institution has offered football, men’s basketball, and women’s basketball. Following those three sports, revenue sharing varies by school, with baseball, softball, women’s volleyball, women’s soccer, women’s gymnastics and wrestling receiving revenue sharing at some colleges.

UNC’s revised roster and scholarship limits allow for 14 additional scholarships in women’s soccer, 15 in hockey, 5.5 in tennis and 26 in lacrosse. Baseball can add 22.3 points, while men’s lacrosse can add 35.

Men’s basketball can add two scholarships, while women’s basketball remains at fifteen. Football scholarships can increase from 85 to 105, although schools may leave room for walk-ons by not funding all 105 seats.

State lawmakers aim to include UNC and NC State athletic departments in the income sharing from sports betting fees. Currently, the schools are not included, but other UNC System institutions are.

The Senate’s approach, which includes raising the tax rate paid by operators, may result in $56 million for schools over the next two years. Under the House bill, schools might get almost $26 million over the same time span. However, the chambers are at a budget impasse that appears unlikely to be resolved soon, leaving that money in limbo.