UNC looks to place athletics in an LLC
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UNC-Chapel Hill trustees are considering putting the university's athletics department into a separate entity owned by the school — a move its athletic director said could help maximize revenue.
Why it matters: As college sports move into a more professional and expensive direction, some colleges across the country are spinning their athletics into limited liability companies.
- The move, UNC's new Athletic Director Steve Newmark said, would give UNC athletics more flexibility and speed in negotiating sponsorship deals, multimedia rights, NIL contracts and live events, like the Savannah Bananas playing at Kenan Stadium.
Driving the news: The idea was put before the UNC Board of Trustees on Tuesday and a final vote could be held in September.
- The LLC would be considered an associated entity that is wholly owned by the university.
- It would be managed by a seven-person board, whose members would include the university's athletics director, its chief financial officer, the chairman of the board of trustees, the chairman of the Rams Club (UNC's booster club) and three members appointed by Chancellor Lee Roberts.
What they're saying: Newmark told the trustees that UNC is not being a trailblazer in forming an LLC. Other schools, such as Louisville, Kentucky and Clemson, have made similar moves, with some variations.
- "If you look across the country, there have been different schools, including a number in the ACC that have created these type of entities," he said. "They've all structured them in slightly different ways. We think we're a bit more conservative in how we're operating, and it still remains in the complete total control of the chancellor and the university."
- Newmark noted that, as of right now, this LLC would be focused on six verticals: sponsorships and multimedia rights, licensing, ticketing, NIL contracts, special events and the operation of Finley Golf Course.
State of play: UNC, along with other schools across the country, have been laser focused on how to make more money in an era of revenue sharing with players.
- UNC athletics brought in roughly $173 million in revenue in 2025, the most recent year with data. But it spent roughly $188 million over the same period — a deficit of about $15 million.
Zoom in: The board of trustees expressed general agreement with the goal of maximizing revenue for athletics, but also showed concern about the potential of losing oversight of athletics.
- The UNC trustees already have had some of their authority over hiring coaches removed by the UNC System after the controversial hiring of Bill Belichick.
Between the lines: Jim Blaine, one of the UNC trustees, asked whether this move would make it easier for athletics to make controversial decisions — like moving the Dean E. Smith Center or letting private equity take a stake in athletics — without more input.
- Private equity companies have become increasingly interwined with college sports, as universities and conferences seek to raise additional money to stay competitive.
- "Is there anything that will be in the bylaws of this organization that would prevent it from making a private equity transaction in the future?" Blaine asked.
- University counsel said decisions like that would need wider approval, but an operating agreement for the LLC had not yet been made available.
What's next: The board of trustees ended the discussion by saying they need more information on how the LLC would operate before making a decision.
- A vote on the LLC could happen in September.