Why UNC sits in peculiar position for future of ACC, further realignment

North Carolina athletics is set to operate at a budget deficit over the coming years, which has motivated the schools’ board of trustees to audit the athletic department.

Athletic director Bubba Cunningham was notably out of town on Monday when the UNC board of trustees met to approve the audit, where several board members voiced major issues regarding the athletic department and how it is being managed financially.

The board’s main concern: that North Carolina has a budget deficit right now and they have the responsibility to fix it.

Board of trustees explain budget concerns

One trustee, Jen Evans, spelled out the financial issues at play and explained the need for an audit.

“The first budget that we saw is a $17 million deficit and we saw a $100 million cumulative deficit in the coming years with no plan to mitigate that. I don’t want anyone to think we are talking in code. There are real issues here, a real concern that one of our most valuable assets, something that really generates revenue, is not being managed properly. So that is the need for the question and answer and that is the need for the audit.”

The chairman of the board, John Preyer, said after meetings with AD Bubba Cunningham he ended up “with more concern and more questions” regarding the budget and said he would not approve of the current budget “in good conscience.” He’s looking forward to speaking with Cunningham directly at closed sessions on Wednesday and Thursday to discuss the budget and how UNC is at a deficit.

Preyer also noted “it is incumbent on us,” the board, to figure out the budget. Another board member, Dave Boliek, added: “We have to actively pursue what’s in the best interests of Carolina athletics.”

In order to pursue those best interests, Boliek even said that North Carolina has to consider the option of forcing its way out of the conference.

“I am advocating for that,” he said. “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.”

Andy Staples explained Tuesday morning on an On3 YouTube stream that those comments are a pretty clear indication that the board sees the path towards a more stable financial situation, and that’s leaving the ACC for the Big Ten or SEC.

“What they’re saying is: there’s a deficit. You’re running a deficit with a $134 million budget. Why are you running a deficit? Why can’t you cover your budget? There’s a way to cover your budget. You could be in a league that pays you $40 million more per year. You could be in the Big Ten or SEC. That’s what they are getting at. That’s the endgame here.”

A power struggle between Cunningham, board

Staples sees a potential power struggle going down between the board of trustees and Bubba Cunningham, with the likely resolution being an attempt to exit the ACC, one way or another.

“That is (Preyer) going in on Bubba Cunningham and that’s where this fight is happening. This is definitely a faction going after the AD who it believes has been too chummy with the ACC and has not agitated enough for something different.

“This one is going to get really interesting. Because, if this power struggle ends with Bubba Cunningham either coming out publicly and saying ‘we got to get out of here’ or losing a power struggle and the people who win it say ‘we got to get out of here’ — I think that speeds things along.”

UNC could pave way for FSU, Clemson to leave

Andy Staples believes an effort by North Carolina to leave the ACC could slick the railways for Clemson and Florida State to do the same, and those schools have already taken legal action towards trying to leave.

“I think that turns the tide in the lawsuits,” says Staples. “Because if UNC sues the ACC in North Carolina then all of a sudden your home-court advantage for the ACC disappears because it’s also UNC’s home court.”

After Clemson and Florida State sued the ACC, the ACC counter-sued out of the state of North Carolina. But if UNC sues the ACC in North Carolina courts, Staples believes that could benefit Clemson/Florida State in their ACC lawsuits.

Staples really doesn’t think the leadership at North Carolina wants to do that, but the board might not give them any choice.

“I don’t think North Carolina wants to take that step. I think they would like to leave that fight to FSU and Clemson. But their board of trustees is getting a little antsy, you can tell.”