NC State’s athletic department is staring at a big hole in its wallet, warning trustees Thursday that it expects roughly an $18.5 million shortfall in the first year of direct revenue sharing and a revamped ACC payout model that rewards TV eyeballs and postseason wins. Leaders pointed to mandatory athlete payments, rising scholarship costs and a conference distribution system that favors the league’s top earners. Athletic director Boo Corrigan and campus officials said they will chase new dollars without turning game days into a luxury event.
Budget Outlook And The Immediate Math
At a Board of Trustees committee meeting, athletics officials laid out a budget projection with about $126.1 million in revenue against $144.6 million in expenses, a gap that produces the projected $18.5 million deficit, along with $44.4 million in ACC distributions, as reported by WRAL. The university has already kicked in $5 million to help stabilize things, and officials described the projections as conservative. Corrigan told trustees the department “is going to fight and claw our way to a balanced budget,” according to the presentation.
Why The Revenue-Sharing Cap Bites
The squeeze is arriving just as schools roll out athlete payouts under the House settlement. Power Five programs are allowed to distribute roughly $20.5 million to athletes for the 2025-26 year, with that ceiling expected to rise to about $21.3 million next season, according to Sports Illustrated. When departments also increase scholarships or expand Alston-style education payments, the effective cap tightens and budgets feel the strain…