PayPal has entered into agreements with two major NCAA conferences: the Big Ten and the Big 12, enabling student-athletes to receive compensation via its platform. According to CBS Sports, PayPal will invest nearly $100 million over five years for the Big 12 conference. For the Big Ten, although the specific amount isn’t mentioned, given its greater prestige and larger number of schools, it’s likely a higher sum.
Additionally, students at some colleges will have the option to use PayPal to pay their tuition. This move is separate from athlete compensation, as most athletes who receive money are already on scholarship but still gives PayPal an advantage in promoting its payment services among educational institutions.
Enhanced Brand Visibility
By partnering with these conferences, PayPal positions itself as a key player in the payments industry. When a school like Ohio State secures a top recruit, instead of presenting them with a traditional cardboard check, they can offer an oversized debit card featuring the PayPal logo.
“Under Alex Criss’s leadership as CEO, PayPal was given the task to restore the brand’s position at the forefront of financial services,” explained Don Apgar from Javelin Strategy & Research. “This strategy is similar to what Visa and Mastercard have employed—utilizing high-profile sponsorships to boost brand recognition and awareness.”
PayPal has been pursuing college football partnerships since last year, aiming to buy the naming rights of the Big 12 among other strategies. Venmo, PayPal’s subsidiary, will become the presenting partner for the Big Ten Rivalry Series and an official partner in the Big 12’s championship events.
Expansion into College Sports
The recent court settlement allowed colleges to start compensating student-athletes. Under this agreement, individual schools can distribute up to $20.5 million to current athletes and up to $2.8 billion in back pay to former players, primarily football and basketball players, as these sports generate the most revenue.
Brett Yormark, Big 12 Commissioner, told CNBC that other conferences are likely to follow suit. The Southeastern Conference and the Atlantic Coast Conference remain the last major football power conferences yet to partner with PayPal.