First off, thank you for all that you do for our beloved Gators.
I have included an open letter from Bubba Cunningham (UNC AD) to the broader Tarheel community. These open letters from ADs across the P4 are being sent out regarding House v. NCAA settlement and new realities for athletic budgets. I am sure a similar letter has been sent or will be sent from our AD and/or the UAA. The following letter is from UNC, but I have seen similar letters from Ohio State & UVA.
The "Path Forward" section below is interesting and I am hopeful that we are exploring and closing new revenue opportunities. Thanks again for all that you do.....
Carolina Director of Athletics Bubba Cunningham shared this message this morning (November 20, 2024):
Dear Tar Heels,
As we head into the holiday season, there is much to be excited about here in Chapel Hill. Our Men's and Women's Basketball teams are currently ranked No. 10 and No. 16, respectively. Our Field Hockey team is headed to the Final Four. Our Football team is bowl eligible, our Cross Country and Men's and Women's Soccer teams are competing in the NCAAs, and our Volleyball program is preparing for a postseason run. It's a great time to be a Tar Heel!
Meanwhile, our Athletics staff is coordinating with leadership in The Rams Club and at the University to ensure that our success – as well as our commitment to providing the best student-athlete experience in the country and competing for championships – is secured long into the future.
This is a pivotal time in the history of college athletics, as we are standing at the crossroads of amateurism and professionalism. NIL (Name, Image and Likeness), conference realignment and the transfer portal have already changed the way we operate. The House vs. NCAA settlement, if fully approved next year, paves the way for payments to former student-athletes, revenue sharing payments to current student-athletes and new roster limits beginning with the 2025-26 academic year. All of these changes will further transform the way we do business.
At Carolina, we are proud of our 61 national titles, including 45 by women's teams. We remain committed to excellence, to winning in and outside of competition and to continuing to support our long history of broad-based programming. Moving forward, that means committing to fair financial arrangements with players while continuing to provide Olympic sport athletes as many opportunities as possible. We must innovate, and we must be flexible as we implement these changes -- and we need your support.
THE CHANGES
The House settlement, expected to gain final approval by U.S. District Court Judge Claudia Wilken in April 2025, will end three lawsuits that challenge NCAA rules about NIL and other payments to student-athletes. The proposed settlement would result in significant changes to the college athletics landscape, as well as the way we operate at Carolina, including:
Revenue Sharing: Institutions will be allowed to share revenue directly with student-athletes. The revenue share – derived from a percentage of average revenue from ticket sales, TV broadcasts and other commercial activity at schools in the top athletics conferences – is expected to start at approximately $20.5 million in 2025-26 and will increase over time. With a $130 million budget last year supporting 28 teams, we are working with the University, The Rams Club and other commercial enterprises to generate as many dollars as possible for revenue sharing. Currently, Football and Men's Basketball are the only sports at Carolina that generate more than they spend. We are still determining how to share revenue while being mindful that the success of those two teams is key to the success of all of our sports programs.
Roster Limits and Additional Scholarship Support: Previously, the NCAA did not limit roster sizes but did limit the number of scholarships that could be awarded in each sport. The settlement now places limits on team rosters with schools being able to provide as many scholarships as roster spots. Carolina currently offers the equivalent of 330 full scholarships to 530 of our approximately 850 student-athletes, thanks to the generosity of our Rams Club donors. While the new roster limits will decrease our total number of varsity student-athletes to a maximum of 735, we are committed to offering more opportunities to student-athletes by increasing the number of scholarships available. The Rams Club Scholarship Endowment will continue to be a great resource in funding athletics scholarships.
Past Damages: The NCAA will pay approximately $2.8 billion to student-athletes who participated from 2016 to 2024 and were not allowed to participate in NIL activities due to NCAA rules. The NCAA will fund this payout by withholding revenue distribution to schools over 10 years. The impact will cost Carolina roughly $1-2 million dollars annually via that reduced distribution.
NIL Opportunities: In addition to revenue share payments, student-athletes still will be able to benefit from their NIL opportunities from third parties, subject to new rules in the settlement – including a national clearinghouse to analyze deals over $600 dollars in order to monitor and enforce the legitimacy of NIL opportunities. This structure should provide better transparency and help to level the playing field in recruiting. It could also mean a change in structure of the collectives supporting student-athletes after this academic year. We fully support the efforts of NCHOF and Old Well Management and ask that you continue to support Carolina NIL through those organizations.
THE PATH FORWARD
We believe strongly in supporting revenue sharing and our Tar Heels student-athletes' NIL opportunities while remaining committed to a broad-based, competitive program of 28 sports. To be successful, Carolina Athletics must continue to adjust the way we have operated in order to generate more revenue. Some of those adjustments include:
Additional corporate partnerships: We are working to expand our sponsorships to new areas. Fans can expect to see additional partner logos in our stadiums, on our fields and courts – and perhaps on our uniforms. We must create new opportunities and innovate and continue to have partners that support our mission of educating and inspiring through athletics.
Donor opportunities: For more than 85 years, Rams Club members have generously supported Carolina student-athletes through scholarships, facilities and team support. Last year, members provided $16.8 million in scholarships through the scholarship endowment and annual giving – and The Rams Club is committed to funding additional scholarships made possible under the House settlement. In addition, it will launch in the coming days a new initiative committed to continued excellence at Carolina through flexible support to meet future needs. More to come soon.
New ticket models and opportunities: We are examining ticket prices for all of our events and will consider adding a surcharge, similar to other institutions' recently announced "talent fee" to benefit revenue sharing with student-athletes. In addition, we will continue to evaluate all of our partners and future opportunities – including multimedia rights, apparel, concessions and merchandise – to ensure our Carolina brand earns maximum value.
Alcohol sales: As previously announced, we have expanded alcohol sales to events held at both the Smith Center and Carmichael Arena. Beer and wine sales began at our outdoor venues in 2019.
Special events: Kenan Stadium has hosted international soccer games for the past two summers, bringing new fans to Chapel Hill while also bringing in new revenue. We will continue to explore other opportunities to bring special events to our community.
Cost cutting and containment: While we will not eliminate essential positions, our Department is evaluating and reviewing our budget and spending.
University support: Athletics has long been a vibrant and important part of the Carolina community, as our more than 200 athletic events each year attract more than 1 million visitors to campus. Since the Covid-19 pandemic, the University has assisted the Athletics budget by delaying and then forgiving some facility debt repayment and transferring additional funds. With the changing financial model in college athletics, the University has committed to supporting our mission and providing some of the funds needed for the new revenue share.
We know change can be challenging. Industry experts believe the final settlement of the House case is still more than five months away, and we are using this time as an opportunity to position Carolina as a leader in the future of college athletics. 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.
Go Heels!
Sincerely,
Bubba Cunningham
Director of Athletics
I have included an open letter from Bubba Cunningham (UNC AD) to the broader Tarheel community. These open letters from ADs across the P4 are being sent out regarding House v. NCAA settlement and new realities for athletic budgets. I am sure a similar letter has been sent or will be sent from our AD and/or the UAA. The following letter is from UNC, but I have seen similar letters from Ohio State & UVA.
The "Path Forward" section below is interesting and I am hopeful that we are exploring and closing new revenue opportunities. Thanks again for all that you do.....
Carolina Director of Athletics Bubba Cunningham shared this message this morning (November 20, 2024):
Dear Tar Heels,
As we head into the holiday season, there is much to be excited about here in Chapel Hill. Our Men's and Women's Basketball teams are currently ranked No. 10 and No. 16, respectively. Our Field Hockey team is headed to the Final Four. Our Football team is bowl eligible, our Cross Country and Men's and Women's Soccer teams are competing in the NCAAs, and our Volleyball program is preparing for a postseason run. It's a great time to be a Tar Heel!
Meanwhile, our Athletics staff is coordinating with leadership in The Rams Club and at the University to ensure that our success – as well as our commitment to providing the best student-athlete experience in the country and competing for championships – is secured long into the future.
This is a pivotal time in the history of college athletics, as we are standing at the crossroads of amateurism and professionalism. NIL (Name, Image and Likeness), conference realignment and the transfer portal have already changed the way we operate. The House vs. NCAA settlement, if fully approved next year, paves the way for payments to former student-athletes, revenue sharing payments to current student-athletes and new roster limits beginning with the 2025-26 academic year. All of these changes will further transform the way we do business.
At Carolina, we are proud of our 61 national titles, including 45 by women's teams. We remain committed to excellence, to winning in and outside of competition and to continuing to support our long history of broad-based programming. Moving forward, that means committing to fair financial arrangements with players while continuing to provide Olympic sport athletes as many opportunities as possible. We must innovate, and we must be flexible as we implement these changes -- and we need your support.
THE CHANGES
The House settlement, expected to gain final approval by U.S. District Court Judge Claudia Wilken in April 2025, will end three lawsuits that challenge NCAA rules about NIL and other payments to student-athletes. The proposed settlement would result in significant changes to the college athletics landscape, as well as the way we operate at Carolina, including:
Revenue Sharing: Institutions will be allowed to share revenue directly with student-athletes. The revenue share – derived from a percentage of average revenue from ticket sales, TV broadcasts and other commercial activity at schools in the top athletics conferences – is expected to start at approximately $20.5 million in 2025-26 and will increase over time. With a $130 million budget last year supporting 28 teams, we are working with the University, The Rams Club and other commercial enterprises to generate as many dollars as possible for revenue sharing. Currently, Football and Men's Basketball are the only sports at Carolina that generate more than they spend. We are still determining how to share revenue while being mindful that the success of those two teams is key to the success of all of our sports programs.
Roster Limits and Additional Scholarship Support: Previously, the NCAA did not limit roster sizes but did limit the number of scholarships that could be awarded in each sport. The settlement now places limits on team rosters with schools being able to provide as many scholarships as roster spots. Carolina currently offers the equivalent of 330 full scholarships to 530 of our approximately 850 student-athletes, thanks to the generosity of our Rams Club donors. While the new roster limits will decrease our total number of varsity student-athletes to a maximum of 735, we are committed to offering more opportunities to student-athletes by increasing the number of scholarships available. The Rams Club Scholarship Endowment will continue to be a great resource in funding athletics scholarships.
Past Damages: The NCAA will pay approximately $2.8 billion to student-athletes who participated from 2016 to 2024 and were not allowed to participate in NIL activities due to NCAA rules. The NCAA will fund this payout by withholding revenue distribution to schools over 10 years. The impact will cost Carolina roughly $1-2 million dollars annually via that reduced distribution.
NIL Opportunities: In addition to revenue share payments, student-athletes still will be able to benefit from their NIL opportunities from third parties, subject to new rules in the settlement – including a national clearinghouse to analyze deals over $600 dollars in order to monitor and enforce the legitimacy of NIL opportunities. This structure should provide better transparency and help to level the playing field in recruiting. It could also mean a change in structure of the collectives supporting student-athletes after this academic year. We fully support the efforts of NCHOF and Old Well Management and ask that you continue to support Carolina NIL through those organizations.
THE PATH FORWARD
We believe strongly in supporting revenue sharing and our Tar Heels student-athletes' NIL opportunities while remaining committed to a broad-based, competitive program of 28 sports. To be successful, Carolina Athletics must continue to adjust the way we have operated in order to generate more revenue. Some of those adjustments include:
Additional corporate partnerships: We are working to expand our sponsorships to new areas. Fans can expect to see additional partner logos in our stadiums, on our fields and courts – and perhaps on our uniforms. We must create new opportunities and innovate and continue to have partners that support our mission of educating and inspiring through athletics.
Donor opportunities: For more than 85 years, Rams Club members have generously supported Carolina student-athletes through scholarships, facilities and team support. Last year, members provided $16.8 million in scholarships through the scholarship endowment and annual giving – and The Rams Club is committed to funding additional scholarships made possible under the House settlement. In addition, it will launch in the coming days a new initiative committed to continued excellence at Carolina through flexible support to meet future needs. More to come soon.
New ticket models and opportunities: We are examining ticket prices for all of our events and will consider adding a surcharge, similar to other institutions' recently announced "talent fee" to benefit revenue sharing with student-athletes. In addition, we will continue to evaluate all of our partners and future opportunities – including multimedia rights, apparel, concessions and merchandise – to ensure our Carolina brand earns maximum value.
Alcohol sales: As previously announced, we have expanded alcohol sales to events held at both the Smith Center and Carmichael Arena. Beer and wine sales began at our outdoor venues in 2019.
Special events: Kenan Stadium has hosted international soccer games for the past two summers, bringing new fans to Chapel Hill while also bringing in new revenue. We will continue to explore other opportunities to bring special events to our community.
Cost cutting and containment: While we will not eliminate essential positions, our Department is evaluating and reviewing our budget and spending.
University support: Athletics has long been a vibrant and important part of the Carolina community, as our more than 200 athletic events each year attract more than 1 million visitors to campus. Since the Covid-19 pandemic, the University has assisted the Athletics budget by delaying and then forgiving some facility debt repayment and transferring additional funds. With the changing financial model in college athletics, the University has committed to supporting our mission and providing some of the funds needed for the new revenue share.
We know change can be challenging. Industry experts believe the final settlement of the House case is still more than five months away, and we are using this time as an opportunity to position Carolina as a leader in the future of college athletics. 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.
Go Heels!
Sincerely,
Bubba Cunningham
Director of Athletics
