Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

College sports programs can have enough revenue committed to pay their athletes and still lack the cash when payments come due.

The timing mismatch runs through the financial administration of athlete compensation. Media revenue, sponsorships and other university sources fund revenue sharing. Third-party marketing deals fund name, image and likeness (NIL) compensation. The money supporting those commitments doesn’t necessarily arrive on the athlete’s scheduled payday.

But as Brendan Kirsch, senior vice president of commercial partnerships at Priority Commerce, told PYMNTS, “revenue isn’t cash.”

Kirsch said student athletes shouldn’t have to wait because a university encounters a cash flow shortfall. He cited athletes taking legal action against coaches and programs over promised dollars that arrived late or never arrived, describing the consequences as a matter of trust as well as accounting.

Meeting a commitment requires administrators to know what’s owed, when it’s due and which funds will cover it. The answers are difficult to find when agreements, budgets, payment schedules and cash forecasts sit in separate places.

The range of transactions adds to the administrative work. Beyond NIL and revenue sharing, Kirsch cited bonuses, rent and meals. Universities handle these flows differently, using different payment methods and combinations of vendors.

Even identifying the source of a payment is essential to documenting it correctly. School-funded revenue sharing counts against a cap. Third-party NIL compensation carries obligations tied to the use of an athlete’s name, image and likeness.

Source link