UNC Allocates $20.5 Million for Athlete Revenue Sharing Amid Changes

In a landmark decision, the University of North Carolina (UNC) has announced it will distribute $20.5 million in revenue sharing to athletes participating in four prominent sports: football, men's basketball, women's basketball, and baseball. This initiative, spearheaded by athletics director Bubba Cunningham, is a direct response to the NCAA’s House settlement, which allows current athletes to receive a share of the revenue generated from their sports.

The announcement was made on June 23, 2025, detailing how the distribution will predominantly favor football and men’s basketball players, who are expected to receive nearly 90% of the total allocation. Specifically, football is anticipated to receive approximately $13 million, which constitutes about 63% of the total fund. This distribution model aligns with national trends observed in other major collegiate athletic programs, such as those at Ohio State and Texas A&M, where football and men’s basketball also dominate revenue sharing.

The NCAA's House settlement, which emerged from a legal agreement involving the NCAA, five major conferences, and former players, introduces significant changes not only in revenue distribution but also in scholarship limits. Under this new framework, UNC is poised to increase its athletic scholarships from 338 to 532 across its 28 sports, despite a reduction in overall athlete numbers due to imposed roster limits. This change reflects a shift in focus towards enhancing the support for current athletes while balancing the financial implications for the university.

According to Dr. Sarah Johnson, Professor of Sports Management at the University of Florida, “The NCAA settlement represents a critical pivot in collegiate athletics, recognizing the contributions of student-athletes who have long been sidelined in financial discussions.” This sentiment is echoed by various academic and industry experts who view the increased financial support as a necessary evolution in the landscape of collegiate sports.

The financial implications of this decision extend beyond immediate revenue sharing. UNC estimates its share of the $2.7 billion in backpay to athletes, who were previously barred from profiting from their name, image, and likeness, will be approximately $2 million annually over the next decade. This backpay initiative is funded through a portion of the NCAA's annual distribution, which has raised concerns among financial analysts regarding the sustainability of such revenue-sharing models in the long term.

Furthermore, UNC’s athletics budget is projected to grow by 20%, reaching approximately $180 million next year. This increase is attributed to strategic financial initiatives, including the recent hiring of Rick Barakat as chief revenue officer, who aims to explore diverse revenue streams such as sponsorships and the potential sale of naming rights for Kenan Stadium. Barakat stated, “We are committed to exploring every avenue to enhance our revenue generation capabilities.”

The shift in UNC's revenue model also highlights broader trends in collegiate athletics where institutions are increasingly turning to alternative revenue sources, such as concessions at games and multimedia rights agreements. UNC is currently renegotiating its contract with Learfield, which oversees its multimedia rights, with expectations of a substantial increase in guaranteed royalties.

Despite these optimistic projections, challenges remain. State lawmakers are deliberating on including UNC and NC State in the distribution of revenue generated from sports betting taxes, which could yield an additional $26 million to $56 million over the next two years. However, ongoing budget negotiations present uncertainties, leaving potential funding in limbo.

As UNC navigates these changes, the implications of revenue sharing will likely reshape the dynamics of collegiate athletics, especially concerning athlete welfare and institutional financial strategies. With a more equitable distribution model now in place, the university is poised to redefine its commitment to athlete support while adapting to the evolving landscape of collegiate sports.