The world of college athletics seems to change by the day nowadays, as the House vs. NCAAÂ settlement, approved by Judge Claudia Wilken on June 6, marks a monumental day in history.
In case you're not familiar with the settlement, the approval now allows universities the opportunity to share revenue with its student-athletes. While this also allows for more scholarship opportunities, it also opens up avenues for past athletes to be compensated for their previous efforts.
With this going into effect on July 1, Bubba Cunningham, North Carolina's Director of Athletics, released a statement detailing some important information for Tar Heels fans to know.
Cunningham's full statement can be read here, but, we'll provide the gist of it for you below!
It's confirmed that North Carolina will fully fund and distribute $20.5 million in revenue share directly to its student-athletes. The revenue share number is set to increase by 4 percent each year, and Cunningham indicated that the division of funding will be re-evaluated annually.
So, which teams will benefit from this the most?
Well, the student-athletes in North Carolina's revenue generating sports, football and men's basketball, will receive the majority of the funding. Additionally, women's basketball and baseball players are also projected to receive some of the revenue sharing.
Speaking of prior student-athletes, we mentioned earlier how some will receive back pay. Cunningham provided more details on how (and how much financially) it impacts the University of North Carolina:
"The House settlement mandates approximately $2.7 billion in back pay to student-athletes who participated from 2016-2024 but were not allowed to participate in NIL activities because of NCAA rules. The NCAA will fund this payout by withholding revenue distribution to schools over the next 10 years – an impact of about $2 million annually for Carolina."
The settlement provides a major "win" in terms of scholarships, as the previous limits for all sports are now a thing of the past. Cunningham noted that North Carolina is set to increase its scholarship allotment by almost 200 across all 28 of the university's athletic teams.
Last year, North Carolina dished out 338 athletic scholarships. Now, that number is expected to increase to 532.
Expect a significant increase in the athletic budget for the upcoming school year. With the features of the house settlement (revenue share and back pay) plus the additional investments the university allocated toward the football program, Cunningham projects a $30 million dollar increase for the 2025-2026 year. He went on to add that they have added a new Chief Revenue Officer to explore new revenue opportunities.
In terms of what fans can do to help, not much has changed. Cunningham mentioned four key areas in which individuals can support the student-athletes at North Carolina during (and throughout) this everchanging landscape of college athletics:
-Contribute to the Rams Club
-Provide third-party NIL opportunities through your businesses
-Follow student-athletes and teams on social media
-Buy tickets and support the Tar Heels
North Carolina seems well-prepared to take on this new chapter of college athletics. Although there's still plenty of questions that still need to be addressed, it's safe to say that Cunningham and his staff will ensure that North Carolina athletics continues to operate at an elite level.