College Portal Networks Expand to Embrace Athletic Institutions Through PayPal Partnership
PayPal Steps into College Sports with Big Ten and Big 12 Partnerships
In a groundbreaking move, the Big Ten and Big 12 NCAA conferences have formed partnerships with PayPal to revolutionise the way student-athletes are compensated and tuition fees are paid.
The tech giant and its sister service Venmo will now serve as the official platforms for these payments in both conferences, following recent changes in NCAA rules and court decisions that allow direct payment to athletes.
The Big Ten and Big 12 conferences are the first to publicly announce these formal agreements with PayPal, which will facilitate secure and rapid transfers. 1, 2
When a Big Ten school signs a top recruit, they can now present the athlete with an oversized debit card featuring the PayPal logo instead of a traditional giant cardboard check. This tuition payment option is separate from the issue of athlete compensation.
Venmo, a subsidiary of PayPal, will serve as the presenting partner of the Big Ten's Rivalry Series and as an official partner of the Big 12's championship events. Some colleges will also have the option to allow students to pay their tuition using PayPal.
PayPal is set to pay the Big 12 conference nearly $100 million over five years, while the amount PayPal will pay the Big Ten conference is not reported, but it is likely higher due to the conference's prestige and number of schools.
This high-profile sponsorship with the NCAA conferences is intended to elevate the PayPal brand and drive awareness. The move positions PayPal as a national rival to Visa and Mastercard in the payments space.
Don Apgar, Director of Merchant Payments at Javelin Strategy & Research, stated that PayPal's move is a strategy to restore the brand to a leadership position in financial services.
Individual schools may distribute up to $20.5 million to current athletes over the next year, while up to $2.8 billion in back pay to former players is expected to be distributed following a recent court settlement.
Big 12 Commissioner Brett Yormark expects other conferences to partner with PayPal soon, with the Southeastern Conference and the Atlantic Coast Conference being the only two college football power conferences yet to join.
PayPal's move into college sports is expected to significantly impact the landscape of student-athlete compensation and tuition payments, with most of the money going to football and basketball players, who generate the most revenue in college sports.
References:
- Big 12's revenue-sharing distribution deal with PayPal includes expanded financial partnership
- PayPal partners with Big Ten
- With the partnership, PayPal is poised to make a significant entry into the world of sports, particularly investing in the financial aspects of college football and basketball.
- As the Big Ten and Big 12 conferences단으로 협력함으로써, PayPal은 대학 스포츠 분야의 signed recruit를 위해 대형 PayPal 로고가 있는 파이썬이 대신하는 대형 장표 체크라이털 체크를 신 freRecruit 할 수 있게 될 것이라는 희망도 있습니다. 이 대 navient은 athlete compensation과 관련이 없는 것을 의미합니다.
