On July 1st, it will be three years since state laws and the NCAA ruled that student-athletes can profit from their Name, Image, and Likeness (NIL). While schools cannot pay players directly, NIL is a workaround for athletes to receive financial compensation for their accomplishments. NIL Collectives raise funds to pay athletes, but the challenge is real. Key donors in communities often donate to the university already. So, how do you fund the NIL athletes without creating donor fatigue? By using conscious capitalism to shift the give from one-time donations to a residual income model.
ASU alumnus Dave Graybill has spent the last 18 years creating positive change in communities nationwide. When ASU supporters reached out for assistance in funding the NIL, he found an opportunity in the merchant services industry.
Graybill partnered with MBCard because they were willing to embrace a disruptive business model to make a difference at a local level. MBCard is giving up to 50% of its profit margin from merchant processing to support nonprofits chosen by its business partners. Great news for businesses that are owned and operated by Sun Devil fans or those who want to attract a new customer base that happens to be part of the Maroon and Gold faithful. By shifting to a dual pricing model with MBCard, businesses get an immediate boost to their bottom line and an MBCard-funded donation towards the sport of their choosing.
“This works for anyone who runs credit cards to operate their business,” Graybill said. “Since 2010, it's been legal for a business to pass on credit card fees to the customer. This is called dual pricing. A customer can choose to pay cash or choose to pay with a credit card, knowing that fees are included. Once the fees are passed on to the customer, the business makes more money because they no longer pay monthly processing fees. The processor and the credit card company take their payments, and as an agnostic broker, MBCard gets the remaining share of the fees. We are then paying it forward by giving a substantial portion of those fees back.
“MBCard can also change out what you're using and in some cases paying for your equipment with dual pricing already set up for free.”
Every business where customers can purchase goods or services by credit card incurs a credit card fee. For example, a $100 transaction ends up netting, on average, $96.50 for the business due to those fees. By passing on that $3.50 fee to the customer, a $100 purchase is $100 made. Currently, it’s estimated that 20% of businesses in the U.S. are passing on fees to the customer, and this figure is growing because the cost of doing business has risen rapidly in recent years.
Businesses that enter into an agreement with MBCard will be recognized as ASU sports supporters and promoted through MBCard, which will, in turn, direct more Arizona State fans to their business as new and repeat customers. Recognition will take place online, through social media, and via a decal in the business's front window or front desk, identifying them as supporters of ASU sports.
“Fans are going to spend their money at businesses that support the Sun Devils,” Graybill stated, “demonstrating their loyalty to those who are invested in ASU athletics. Fans who have always wanted to give to the NIL can do so by taking their business to those dry cleaners, restaurants, hair salons, etc., who partner with MBCard and who make the NIL donation. Businesses will be able to differentiate themselves from the competition by saying, ‘This business is activated. We're charging you the credit card fee because it's going to a good cause, ASU sports.’”
MBCard President Dave Graybill assures unprecedented transparency in the donation process from MBCard. “Something we discovered while putting this program together,” said Graybill, “was that people repeatedly said, ‘If we knew where our money was going, we would give more.’ That screamed of the need for transparency.”
The company provides each business with a detailed report specifying the amount donated each quarter and the exact date the money lands in the NIL account. In addition, Arizona State coaches will receive a report of what was sent to Sun Angel NIL Collective on their (ASU supporting businesses) behalf so that there will be full transparency on the availability of funds, and funding amounts.
The efforts to sign up businesses to be part of this NIL program are already underway. One business that is already on board is Bartlett Lake Marina, owned and operated by ASU fan Bryan Church, which rents out houseboats, jet skis, a 5-acre beach area, and other facilities at Carefree’s Bartlett Lake. More businesses are expected to be announced in the weeks and months to come.
“If you run a business or know a business that supports ASU sports, please send them my way,” Graybill said.
Graybill can be emailed at Dave@mbcard.com or contacted at 602-380-8714.
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