RALEIGH, N.C. (October 27, 2026) — College athletics are costing North Carolina students and taxpayers millions of dollars while threatening universities’ core academic missions, according to a new report released by the James G. Martin Center for Academic Renewal.
The report, Sports at What Cost? Athletics, Academics, and the UNC System, authored by Martin Center Research and Policy Fellow Shannon Watkins, examines the financial and academic consequences of intercollegiate athletics at 15 University of North Carolina System institutions.
The findings reveal a troubling pattern: While universities spend millions on athletics programs, students face mandatory fees, taxpayers subsidize athletics operations, and some student-athletes graduate at significantly lower rates than their peers.
“Athletics can have a positive role on a university campus, but not at the expense of its academic mission,” said Watkins.
Among the report’s key findings:
- Students pay hundreds in mandatory athletic fees. UNC Asheville charges $906 annually, followed by Elizabeth City State University ($899) and North Carolina A&T State University ($870).
- Taxpayers subsidize out-of-state athletes. At UNC-Chapel Hill, UNC Charlotte, and NC State alone, treating nonresident student-athletes as in-state students costs taxpayers an estimated $15.5 million.
- Athletic spending continues to climb. UNC-Chapel Hill’s athletics department spent $188 million in fiscal year 2025, exceeding its revenue by $15 million.
- Academic outcomes raise serious concerns. NC State men’s basketball players have an 18 percent six-year federal graduation rate, compared with an 85.5 percent overall graduation rate for the university’s students.
- Many athletic programs depend heavily on subsidies. At Elizabeth City State University, student fees and institutional and government support account for approximately 92 percent of athletics revenue.
The report also examines escalating coaching salaries, academic admissions exceptions for athletes, and the growing influence of sports gambling on university campuses.
To address these challenges, the Martin Center recommends reducing mandatory athletic fees, eliminating costly coaching buyouts, strengthening academic admission standards, and reconsidering the athletic divisions in which certain universities compete.
The report further calls on North Carolina lawmakers to repeal the policy allowing qualifying out-of-state student-athletes to be treated as residents for tuition and state-funding purposes.
Read the full report: Sports at What Cost? Athletics, Academics, and the UNC System.