In the ever-changing landscape of college athletics, with so much in flux, athletic directors must do their best to manage their departments but also keep their alumni, fans and supporters informed of what’s happening and why it’s happening.

At North Carolina, athletic director Bubba Cunningham has put out an online message to the UNC faithful that extols the successes of Tar Heel sports, but tries to explain and educate them on what’s to come — and what it will cost.

“This is a pivotal time in the history of college athletics, because we are standing at the crossroads of amateurism and professionalism,” Cunningham wrote.

Name, image and likeness and the term “NIL” have become a permanent part of the equation in college athletics. So has the NCAA transfer portal, which allows freedom of movement among athletes but has created roster management headaches for administrators and coaches.

But as college athletics leaders try to grapple with the problems associated with those changes, they also wonder when they finally will get clarity from the courts or Congress on how athletes will be paid in the future and generally how much they will receive.

“We must innovate and we must be flexible ...” Cunningham wrote.

Cunningham did not mention the ACC or speculate on conference realignment in his missive, nor did he mention possible renovation or replacement of the Smith Center.

He did, however, indicate UNC does not intend to drop sports because of the added revenue demands, but emphasized new ways of increasing revenue could include such things as “new ticket models.”

NCAA lawsuit affects UNC, ACC

Cunningham and others in college sports are hoping an approved settlement of the House v. NCAA lawsuit, first filed in 2020, will end other lawsuits against the organization over NIL and paying athletes. He wrote that the settlement could be approved by April 2025.

Cunningham said the settlement, if approved, would lead to a revenue-sharing plan that would allocate about $20.5 million a year to UNC athletes in the 2025-26 school year, based on the school’s annual athletic budget of roughly $130 million.

Noting that football and men’s basketball were the only two UNC sports that “generate more than they spend,” he wrote the athletic department would work with the university, the Rams Club and “commercial enterprises” to generate more revenue.

“We are committed to sharing revenue, recognizing the teams that generate it and continuing to champion our long history of success,” Cunningham wrote.

In addition, the NCAA will pay about $2.8 billion in damages to former athletes who competed from 2016 to 2024 but were not able to benefit from NIL revenue because of NCAA rules. Cunningham wrote that with the NCAA to make those payments over a 10-year period, the NCAA distribution to UNC could be reduced by $1 million to $2 million a year in that period.

Another added expense will be providing scholarships for roster spots. Under the settlement, roster spots will be limited but scholarships will be allowed for each roster spot. At UNC, Cunningham wrote, the number of varsity roster spots will be reduced to 735 from 850, but more scholarship money would be needed and that the Rams Club Scholarship Endowment would be a “great resource” for the athletic department.

How will UNC pay for added expenses?

Cunningham wrote that UNC was “committed” to maintaining its 28 sports — that is, not cutting sports. But to pay for it, he said, steps would need to be taken that include such initiatives as expanding corporate sponsorships, maintaining or increasing donor support ($16.8 million for scholarships last year) and potentially “new ticket models.”

N.C. State has its own football “ticket model” for 2025, and Cunningham said UNC is considering a surcharge or “talent fee” to benefit the revenue-sharing with athletes.

Cunningham cautioned UNC fans they also could begin to see corporate logos in the stadiums, on the playing fields and “perhaps on our uniforms.”

The Carolina Hurricanes, for example, have a partnership with Lenovo, which recently signed a 10-year, $60 million arena naming-rights agreement with the NHL team and has a “Lenovo” decal on the players’ helmets. Lenovo, the technology company with a global headquarters in the Triangle, has sponsorship agreements with N.C. State, which plays men’s basketball at the Lenovo Center, and UNC.

At UNC, additional revenue also has come in selling alcoholic beverages at the Smith Center and Carmichael Arena.

The constant need to increase NIL opportunities and the portal uncertainty have constantly been mentioned by UNC football coach Mack Brown and others in college sports. Some successful veteran coaches have retired, although Brown continues to insist that at 73 his life’s purpose continues to be helping the young men in his program and that he still enjoys coaching -- that is, has no immediate plans to retire.

But the unsettled future of college sports is concerning, for Brown and others.

“We know change can be challenging,” Cunningham wrote. “We appreciate the patience and support of our coaches, staff, alumni, donors and Carolina community through these changes.”