OT: Kendrick Perkins co-founded 'predatory-ish' NIL cash upfront company

[Slacktard]

https://www.espn.com/college-sports/story/_/id/41664466/nilly-nil-company-college-athletes-kendrick-perkins-consumer-protection-experts

A new company co-founded by former NBA champion Kendrick Perkins is offering college athletes upfront cash in exchange for a portion of their name, image and likeness deals, an arrangement some consumer protection experts and financial advisers say could prey on young athletes.

The company, Nilly, offers athletes upfront payments ranging from $25,000 into the hundreds of thousands, said Perkins and his co-founder, Wall Street veteran Chris Ricciardi. In return, Nilly gets the exclusive rights to use or sell the athlete's name, image and likeness for up to seven years, and the company and its investors receive between 10% and 50% of the player's NIL earnings during that time period.

While other companies sell investors a stake in athletes' future professional salaries, Nilly says it is the first and currently only company to offer cash advances on college NIL dollars. Several agents, athletic department employees and others who work in the college sports industry told ESPN they were unaware of any other company that was paying college athletes in exchange for a cut of their NIL earnings.

ESPN obtained a copy of one Nilly contract that lays out a $50,000 payment to a high school senior in exchange for the exclusive rights to sell his name, image and likeness for seven years. In that contract, Nilly and its investors will receive a 25% cut of the player's NIL earnings for the length of the contract, or until Nilly earns a total of $125,000 (2½ times its initial investment), whichever comes first. Ricciardi said the percentage of NIL money that Nilly takes from an athlete can be as high as 50%, and a spokesperson said Nilly's share can be as low as 10%.

So not only does he give horribly bad and uniformed takes on TV as an analyst... He's now part of a company that will try to exploit student athletes coming from limited means and in return for an upfront cash advance secure the ability to potentially get up to 50% of what that player can earn in NIL.

[Sealab2024]

This is, of course, predatory and wrong. Little different from the mob making young artists sign over copyrights to music in the 50's, 60's, 70's and 80's in order to get their foot in the door. It's wrong but this is America where Laissez-fare Capitalism rules and nothing is actually wrong until you see the inside of a jail cell.

[bisme37]

Can't wait for ESPN to go live to Perk for his incredible basketball analysis from federal penitentiary.

[chilluminati]

Man I didn't think he could become more unlikable, but he managed it.

[Lalouie]

too much stink over this one. espn will force Perkins to make a choice.

Hopefully he chooses nilly

[azcatz11]

This is, of course, predatory and wrong. Little different from the mob making young artists sign over copyrights to music in the 50's, 60's, 70's and 80's in order to get their foot in the door. It's wrong but this is America where Laissez-fare Capitalism rules and nothing is actually wrong until you see the inside of a jail cell.

That’s actually the first thing this reminded me of. Extremely predatory behavior. I can’t believe perk would do this

[zimpy27]

ESPN seem to be fine with it.. They wrote the article.

I think the 7 years is the problem.
It's cool that it's not a loan and that the company itself will put in the work to retrieve money from the NIL of the athlete. It does sound like a licensing deal.

[CS707]

ESPN seem to be fine with it..

Likely because it'll give one of their assets increased access to recruits and the insider information that comes with it.

Insider as in more plugged in, I mean.

[Dennis Reynolds]

Does this guy have a single quality? Annoying, loud, obnoxious, tough to look at, somehow even harder to listen to and now this. What a deplorable human being.

[Lalouie]

ESPN seem to be fine with it..
https://www.espn.com.au/college-sports/story/_/id/41664466/nilly-nil-company-college-athletes-kendrick-perkins-consumer-protection-experts


I think the 7 years is the problem.
It's cool that it's not a loan and that the company itself will put in the work to retrieve money from the NIL of the athlete. It does sound like a licensing deal.

But 7 years is such a long time. Should be like 2-3 years.

Business model seems like they expect not to make money from some players but make a killing on a few.

the big money is in the last three years for football,,, and 4/5 years in basketball

If nilly wanted to be magnanimous, they'd do 2 years when the college athlete is still in school and needs the money, but who said perknilly was a giving sort.

perknilly will rationalize the benes for the average collegiate but this smells really bad, and perception is everything

[zimpy27]

ESPN seem to be fine with it..
https://www.espn.com.au/college-sports/story/_/id/41664466/nilly-nil-company-college-athletes-kendrick-perkins-consumer-protection-experts


I think the 7 years is the problem.
It's cool that it's not a loan and that the company itself will put in the work to retrieve money from the NIL of the athlete. It does sound like a licensing deal.

But 7 years is such a long time. Should be like 2-3 years.

Business model seems like they expect not to make money from some players but make a killing on a few.

the big money is in the last three years for football,,, and 4/5 years in basketball

If nilly wanted to be magnanimous, they'd do 2 years when the college athlete is still in school and needs the money, but who said nilly was a giving sort.

Well it's capped at 250% return.

So if Nilly give $100k then Nilly will take 25% of NIL money until they get back $250k, then the deal ends. That's my understanding. The upper limit is good, it's not a loan where a guy keeps paying 30% for 7 years. So there is limited risk.

I think the benefit is that it sounds like Nilly will try help promote the athletes because it's in mutual interest to get their money back in that 7 year window. I imagine the athletes that look like they'll pay back the 250% without help will not be helped but the ones that struggle to pay it back will probably get help to sell their NIL.

[Lalouie]

ESPN seem to be fine with it..

Likely because it'll give one of their assets increased access to recruits and the insider information that comes with it.

Insider as in more plugged in, I mean.

I'd like to see fox jump into this blossoming bruh haha

[shrink]

Can't wait for ESPN to go live to Perk for his incredible basketball analysis from federal penitentiary.

“This might not be YOUR list of top five prison foods, but ..!”

[Zeno]

Just curious, are these types of deals binding if signed before the guys are 18 years old? There has to be an age when this isn't binding, right?

[dhsilv2]

If there's a cap at 2.5x earnings...I can't say I'm all that upset. I mean for an ESPN employee this is like charity work vs the trash they do on live TV.

[TheNewEra]

ESPN seem to be fine with it..
https://www.espn.com.au/college-sports/story/_/id/41664466/nilly-nil-company-college-athletes-kendrick-perkins-consumer-protection-experts


I think the 7 years is the problem.
It's cool that it's not a loan and that the company itself will put in the work to retrieve money from the NIL of the athlete. It does sound like a licensing deal.

But 7 years is such a long time. Should be like 2-3 years.

Business model seems like they expect not to make money from some players but make a killing on a few.

the big money is in the last three years for football,,, and 4/5 years in basketball

If nilly wanted to be magnanimous, they'd do 2 years when the college athlete is still in school and needs the money, but who said nilly was a giving sort.

Well it's capped at 250% return.

So if Nilly give $100k then Nilly will take 25% of NIL money until they get back $250k, then the deal ends. That's my understanding. The upper limit is good, it's not a loan where a guy keeps paying 30% for 7 years. So there is limited risk.

I think the benefit is that it sounds like Nilly will try help promote the athletes because it's in mutual interest to get their money back in that 7 year window. I imagine the athletes that look like they'll pay back the 250% without help will not be helped but the ones that struggle to pay it back will probably get help to sell their NIL.

Yeah with the cap on how much you are on the hook to return pay then I don’t see the reason for the outrage. Calling this predatory seems like sick behavior.


No predator behavior was when the athlete got nothing at all and the schools banked off them.

[UcanUwill]

WIth NCAA players getting paid now, I imagine most guys who need this service probably wont have high self likeness value to begin with, but I can be wrong.

[azcatz11]

If there's a cap at 2.5x earnings...I can't say I'm all that upset. I mean for an ESPN employee this is like charity work vs the trash they do on live TV.

Preying on young poor black kids. It’s really bad.

[dhsilv2]

If there's a cap at 2.5x earnings...I can't say I'm all that upset. I mean for an ESPN employee this is like charity work vs the trash they do on live TV.

Preying on young poor black kids. It’s really bad.

In a world where check advances are legal. Loans for pets are acceptable. This is pretty low hanging fruit. And frankly, sometimes you might actually NEED that money. These amounts are bad, but if you sign early would these guys not also potentially help you get better NIL money? If they do that, one could even argue it might not even be so bad.

Not justifying this btw. Just saying there are worse things. Like SAS being allowed on TV...

[JJ_PR]

I wish someone would prey on me by giving me hundreds of thousands of dollars in exchange for my image...