One catastrophic collapse in March Madness has jeopardized Hubert Davis’ future at North Carolina and could force the university into a multi-million-dollar decision.

Despite being the favorites to win against the VCU Rams, they found themselves exiting the first round after 41 years. And that has led to speculations over the last 24 hours about coach Davis’ impending departure from the Tar Heels program.

“Hubert Davis’ future at North Carolina is in serious doubt as pressure mounts after historic collapse,” was shared by CBS Sports’ Matt Norlander, who says it would come off as a huge surprise if the Tar Heels retain the coach after today’s performance.

While losses happen, the way UNC blew a 19-point lead in the second half was catastrophic and might become the precursor of things to come. The loss snapped a 41-year streak of avoiding a Round of 64 exit, a collapse that highlighted the team’s inability to close out games.

It was so shocking that even the commentator would go on to say “Upset Madness” to describe the Rams’ victory over UNC. But who would have guessed this was in the cards?

However, when Hubert announced himself in the grand scheme of things, this wasn’t the case. The first season saw him make a run to the national championship game. But the form has dipped since then. Missing the tournament in 2023, an early exit in 2024 as a No. 1 seed with a Sweet 16 loss, and now back-to-back one-and-done NCAA Tournament exits have all culminated in a situation where “firing” could be an option. But then there’s a catch here with Hubert Davis’ contract.

Firing Davis Would Trigger A Hefty $5.3M Buyout

North Carolina now faces a difficult financial and strategic decision. While looking for replacements would be their option, the way Davis’ contract goes, it doesn’t end well for the Tar Heels.

Hubert’s contract is valid until June 30, 2030. Now, if UNC were to move on from its coach, the financial commitment would be significant. The deal states UNC would owe Davis $5.312 million if he were fired in April, and this comes from USA Today itself, which has obtained the contract between the two.

The contract further states that Hubert’s contract includes a base salary of $1.25 million annually, along with $1.8 million in supplemental compensation for the 2026 contract year. That supplemental figure increases by $100,000 each year for the remainder of the deal. He also receives $50,000 annually in university expenses, along with additional outside compensation, including payments from Nike and Learfield Sports.

His total compensation for the 2026 contract year is listed at $3.85 million, with increases scheduled over the life of the contract as the supplemental pay escalates. So that is a steep financial hurdle that North Carolina will have to accommodate if it chooses to cut ties with Hubert. But that doesn’t mean negotiations wouldn’t help in finding better solutions.

North Carolina athletic director Bubba Cunningham has since commented on the situation. Keeping the back-to-back losses in mind, Cunningham had this to say.

“Every year at the end of the season, it’s important to evaluate all facets of the program and look for ways to improve. The Chancellor, [executive associate athletic director] Steve [Newmark] and I are doing that together now and will continue to have discussions over the coming days,” said Cunningham about the next steps he will take.

That particular line of action may lead to a possible reshuffling in the ranks, believes ESPN’s Pete Thamel, and many staff members get axed in the process. However, whether Davis’ name will be on that list is still not certain. Who knows, maybe Hubert will get one more chance to redeem himself. In all honesty, five years isn’t much time to gauge a coach’s worth, and Hubert’s five years with UNC might have been mediocre, but they weren’t a disaster by any means.