Michigan State University football and men’s basketball athletes will be paid $500-dollars a month by a Michigan mortgage company.
The move follows new NCAA rules.
United Wholesale Mortgage is run by former MSU basketball player Mat Ishbia, a walk-on member of the 2000 national championship team. In February, Ishbia made a $32-million donation to Spartan athletics programs. Now, his company is sponsoring athletes with direct payments.
The sponsorships will pay more than 130 student-athletes at Michigan State $6,000 a year each.
Ishbia said he started with the two major men’s sports because dealing with hundreds more would have been a logistical nightmare.
“It wasn’t as simple as, like, calling the university and setting up a deal,” Ishbia explained. “I actually had to go to each individual and have 133 different contracts for each player. The coaches can’t help, the athletic directors can’t help. Nobody can help.”
Ishbia hopes there will be similar financial support for all 900 athletes at the school.
“We’re looking at how to expand in the future,” he added. “But beyond me expanding, I’m hoping other businesses come in and say 'Listen, Mat helped out football and basketball, we’ve got cross country, we’ve got tennis, okay these guys got soccer.’ Let’s help all of the student-athletes, and we’re hopefully the leader in this respect and hopefully, others will follow.”
The NCAA began allowing payments to athletes for usage of their name, image or likeness in July.