How Are North Carolina’s College Coaches Paid?

American universities, especially in the South, are famous for their emphasis on sports. Football stadiums often seat more fans than do city arenas, and coaching contracts can rival those of Fortune 500 executives. College athletics have grown into more than just a pastime; they’re a deeply embedded part of the culture. As tuition rises in a number of states and regions, coaching salaries soar. Stadiums tower over libraries, and while some academic programs face budget cuts, athletic-department spending continues to rise. Millions of dollars are funneled into athletic programs each year for equipment, staff, marketing, and coaching. Fans and donors sustain this by buying tickets, gear, merchandise, and more.

As part of this entrenched system, high-profile coaches often command massive salaries. This can be understandable when teams generate substantial revenue for their schools. But who decides the coaching salaries that say so much about institutional priorities? And who oversees the process?

A system of checks and balances prevents any one person or group from unilaterally offering an excessive contract. Here in North Carolina, according to the UNC Policy Manual, schools’ athletic directors make recommendations about head coaches; boards of trustees (and sometimes the UNC System Board of Governors) vote on them; and final approval is given by the university chancellor and the president of the System. To be clear, this process doesn’t apply to the small army of assistant coaches that sometimes exists. Nevertheless, the structure is a good one. It’s important to have multiple parties involved in the hiring of high-profile coaches because these decisions carry financial weight, sometimes involving millions of dollars. Boards of trustees help ensure that contracts align with the university’s budget and priorities. So, zooming out a little, does the UNC System president. This system of checks and balances prevents any one person or group from unilaterally offering an excessive contract. When making major hires, a school should have a long-term vision that reflects the university’s mission and values. If a coach is hired without the approval of multiple parties, particularly a board, it can lead to distrust among students, faculty, taxpayers, and the general public.

If a coach is hired without the approval of multiple parties, it can lead to distrust among students, faculty, taxpayers, and the general public. A lesser-known influence in college sports (and other areas in a university) are boosters. Boosters are, for the most part, wealthy alumni who financially support their university. If a large majority voice an opinion on a new coaching hire, it can influence a school’s decision. Boosters’ voices are heard through fundraising and donations to athletic programs, as well as during the construction or improvement of sports facilities. Their influence is also felt through academic donations for things such as libraries and campus-development projects.

That said, every public university in North Carolina follows the same basic hiring process for head coaches, starting with the athletic director, followed by the board of trustees, then the chancellor and, if necessary, the Board of Governors and the System president. Instances that require the Board of Governors to vote are contracts that include deferred compensation, a buyout clause, a damage-mitigation waiver, or a loss-of-outside-income scenario.

This process works even for very high-profile selections. Bill Belichick, legendary NFL coach, was recently hired as the UNC-Chapel Hill football coach and given a five-year contract. His salary, of course, is exorbitant, but he is Bill Belichick, and with his name comes rewards for the program and the university. (Example: The Tar Heels just sold out their football stadium for the season earlier than ever before in program history.) Belichick will earn $10 million per year for each of his first three years ($1 million in base salary and $9 million in guaranteed supplemental income). In years four and five, he will continue to receive his $1-million base salary, but the supplemental income is not guaranteed. He is also eligible for up to $3.5 million in bonuses each year, depending on factors such as games won, playoff appearances, academic performance, and other criteria. The UNC Board of Trustees voted on and appointed him, which, as mentioned above, is policy for high-level hires.

The hiring of the new head coach’s son, Steve Belichick, as an assistant coach raises questions, however. Despite guaranteeing a seven-figure salary, Steve Belichick’s contract was not brought before the Chapel Hill Board of Trustees for a vote. Head coaches generally have autonomy in selecting their assistant coaches, and it’s clear that Bill Belichick had more sway in hiring his son than did those in the normal chain of oversight. Thus, it is fair to say that, while the Board of Trustees is tasked with major appointments, it is not fully involved in all athletic hiring decisions—a curious oversight considering athletics is where some of the largest sums are spent and made. This can cause public concerns over nepotism, accountability, and transparency. It also raises a critical governance issue: Are some of the university’s most lucrative contracts being approved without meaningful oversight?

After all, Steve Belichick’s base salary is higher than that of every chancellor in the UNC System. Half of Chapel Hill’s religious studies faculty take home together what he makes by himself. No doubt UNC’s defense will be very good this year. But someone other than “Dad” should have a say in a contract of this size.

As the following chart indicates, 30 UNC System coaches have a base salary that is higher than the average UNC System chancellor’s base salary ($416,657).

Following Bill Belichick’s hiring, UNC System president Peter Hans issued a directive limiting trustee authority at UNC-Chapel Hill, a result of trustees allegedly being too hands-on during the Belichick process. Under this new policy, the Board of Trustees can no longer directly negotiate or approve contracts for athletic directors or head coaches. From now on, Hans (or his designee) must approve all hiring decisions or salary adjustments related to athletic-department employees. Certain contracts, such as those for athletic directors and head coaches, must still be approved by the Board of Trustees; however, Hans’s sign-off is now required first.

Steve Belichick’s base salary is higher than that of every chancellor in the UNC System. How much do college sports programs bring in, and where does the money go? In the 2022-23 school year, UNC-Chapel Hill alone brought in around $164 million in athletic revenue. The majority of this money was made through football and men’s basketball. The main revenue sources included ticket sales, concessions, parking, and merchandise. Another major stream comes from TV and radio rights, which is overwhelmingly from football and men’s basketball, as well. This money in turn is used to fund expenses for all of the school’s sports teams, as well as some player revenue sharing. Again, the majority of revenue sharing goes to football and men’s basketball players.

The UNC System has a structured process for determining athletic coaches’ salaries. The new wrinkle (the Bill Belichick factor) is that the System president must now sign off on salary decisions for coaches and athletic directors at the flagship school. There are several other factors involved. The size and prominence of a university can inflate salaries, and small universities typically have less revenue to work with. The more money a university generates, the more it can afford to pay its coaches. Conversely, a high-profile coach can help a school bring in more money. Boosters can also play a role, especially at prestigious institutions with many wealthy donors who carry influence. Money talks. A winning sports program not only affects its fan base but can also spotlight a university and boost enrollment. College sports hold real power, and they’re not going away.

Reagan Allen is the state reporter for the James G. Martin Center for Academic Renewal.