North Carolina Board Members Approve Audit Of Athletic Department Budget. Is This A Play To Leave ACC?

University of North Carolina board of trustees have a problem with the revenue stream from the ACC, and things don't sound too well for athletic director Bubba Cunningham. 

As members of the ACC congregate this week in Florida for their annual spring meetings, the UNC board of trustees decided the perfect time to agree to an audit of the athletic department was when AD Bubba Cunningham arrived for his talks with other conference leaders. 

According to WRAL, the board is upset with the management of revenue within the athletic department, as the board received a preliminary budget for the 2024-2025 academic year with a $17 million deficit. A good portion of the anger from board members stem from the drastic change in revenue that comes from the ACC during a time of crisis within the conference. 

Board of trustee member Dave Boleik told WRAL that his colleagues on the board have not been given any type of strategy as to how North Carolina's athletic department will handle monetary problems in the future, especially when conferences like the Big Ten and SEC will receive more than double the annual revenue compared to those in the ACC, thanks to massive television deals. 

"Carolina's ability to maintain excellence at a high level is going to require really prudent budgeting and revenue models and potential cost-cutting," Dave Boliek told reporters following the meeting. "A lot of it is due to the revenue or lack there of revenue that we're not receiving from the ACC deal."

While all of this is transpiring in Chapel Hill, both Florida State and Clemson are suing the ACC to get out of the current Grant of Rights that binds their media properties to the conference. 

WASHINGTON, DC - MARCH 14: Armando Bacot #5 of the North Carolina Tar Heels celebrates against the Florida State Seminoles in the Quarterfinals of the ACC Men's Basketball Tournament  at Capital One Arena on March 14, 2024 in Washington, DC. (Photo by G Fiume/Getty Images)

Is North Carolina Board Of Trustees Laying Groundwork For ACC Exit? 

This is all transpiring while North Carolina is realizing that to continue funding the athletic department without a deficit, something has got to change when it comes to a revenue stream. 

"We can't sit back and cross our fingers and pray for pennies from heaven and thinking everything is going to 'work out.' We have to actively pursue what's in the best interests of Carolina athletics," trustee Dave Boliek noted. 

Chairman John Preyer noted during the meeting that the board has received ‘bad data’ and noted that it's time that the school get it right when it comes to how it will move forward. In this case, the board approved a motion to audit the athletic department and take a dive into the financial records to figure out if there was something that was missing, with Preyer noting that this budget has not been ‘managed properly’. 

CHAPEL HILL, NORTH CAROLINA - NOVEMBER 11: Drake Maye #10 of the North Carolina Tar Heels reacts after rushing for a touchdown against the Duke Blue Devils during the game at Kenan Memorial Stadium on November 11, 2023 in Chapel Hill, North Carolina. The Tar Heels won 47-45 in double overtime. (Photo by Grant Halverson/Getty Images)

All of this comes on the heels of a drastic change in college athletics, with the NCAA on its way to settling numerous lawsuits that will lead to revenue sharing with student athletes. As for athletic director Bubba Cunningham, he will return to Chapel Hill later this week for a board meeting Thursday to address the situation. 

It's safe to say that members of the board of trustees, along with the athletic department, are at a crossroads when it comes to moving forward under the ACC agreement. 

As for trying to gain admission to a bigger conference like the SEC or Big Ten, trustee Dave Boleik says it's imperative that North Carolina do everything it can to join the more lucrative conferences, or have the ACC come up with a better financial plan moving forward. 

"That's what we need to do. We need to do everything we can to get there. Or the alternative is the ACC is going to have to reconstruct itself. I think all options are on the table."