OT: Kendrick Perkins the shyster

[dTox]

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

Just when you couldn't dislike this guy anymore for ruining NBA shows

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.

A trio of consumer finance experts who reviewed the Nilly contract said parts of the deal resemble a high-interest loan, and multiple financial advisers who work with college athletes raised concerns about whether the company is offering quick cash that comes with too steep a price.

"To me it feels like you are preying on people who need the capital now and using that to cloud their focus on the future," said Michael Haddix Jr., whose company Scout provides financial education seminars to college athletic departments. "It feels predatory, and it's capitalizing on young people who need money and haven't thought through the long-term implications."

Utah law professor Chris Peterson, who was previously an adviser for the federal government's Consumer Financial Protection Bureau, said several parts of Nilly's contract reminded him of other financial products that are labeled as investment opportunities but function as loans.

"These are trashy products designed to take advantage of young kids," Peterson said.

[DelAbbot]

Watch on YouTube

[binjumper]

Not surprising coming from a guy with ignorant takes.

[AbC?]

Eh it could be a lot worse:

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%.

That there is a upper limit of return for the company makes it less predatory than it otherwise could be. There is a level of risk for the company too if the athlete gets injured or in some way doesn't get the NIL money that is expected.

[kalel123]

Does this mean ESPN will "distance" themselves from Perkins and his ugly mug will no longer show up on their show with his wild takes?

Hope so.

[Brinbe]

awful and exploitative

[OakleyDokely]

Watch on YouTube

[LoveMyRaps]

Lock him up.

[YogurtProducer]

Eh it could be a lot worse:

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%.

That there is a upper limit of return for the company makes it less predatory than it otherwise could be. There is a level of risk for the company too if the athlete gets injured or in some way doesn't get the NIL money that is expected.

Was gonna say.

Personally, I don't see a huge deal here. The athletes get money NOW, and the company providing the loan takes a risk the athelte never makes it big and essentially gave money away.

[Scase]

A lot of people are clowning on this because it's perk. But the company is the one taking the bigger risk, putting up front 50k with a pretty reasonable risk to never see a return on it, and not expecting the player to pay it back isn't bad. And considering their cap to returns is 125k, that's not a lot of money if they are betting on these players to blow up, they would make a hell of a lot more than that.

The outrage about this is just reactionary, this isn't exploitative, and is shockingly reasonable.

[Badonkadonk]

Utah law professor Chris Peterson, who was previously an adviser for the federal government's Consumer Financial Protection Bureau, said several parts of Nilly's contract reminded him of other financial products that are labeled as investment opportunities but function as loans.

"These are trashy products designed to take advantage of young kids," Peterson said.

Had a law prof back in the day who used to dunk on some predatory contracts in sports (mostly the shadier agency deals) following similar logic.

Predictable scummy behavior from Perk.

[Basketball_Jones]

50k to own you for 7 years? That’s so exploitative. That term has to be way less

[PushDaRock]

I think it's more likely that Perk is the one that will be getting "exploited" than the other way around. This isn't likely to be a business model that works IMO at least if the reliance is just on the NIL money generated from athletes for revenue. There could however be some other potential verticals opened up from building up a large clientele base from something like this which would have value beyond NIL revenue though.

[Loyal_Canuck]

I suspect Rich Paul does similar crap based on his behaviour. I’m sure more will come to light when Lebron retires

[Aventador]

if you bothered the read the article, it's a reasonable allocation of risk. nothing shyster about it.

[Badonkadonk]

if you bothered the read the article, it's a reasonable allocation of risk. nothing shyster about it.

What? The entire conclusion (final section) lays out the concerns with it very clearly. This is the end of it:

Fox, Pierce and Peterson -- the Utah law professor -- all said Nilly's contracts include concerning clauses that make it easy for the company to determine that an athlete had breached the agreement.

For example, if an athlete does anything that Nilly determines to be "injurious to the reputation of the company," Nilly can terminate its deal, according to the contract obtained by ESPN. Ricciardi said the language is a "boilerplate" morality clause that exists in all licensing contracts. But Pierce said if Nilly found an athlete had violated the terms of their deal, the contract gives the company options to keep the athlete's future earnings until the contract date ends or sue him or her to recoup the initial upfront payment.

"The promise here that if you don't make it big you don't have to pay anything back has a lot of fine print underneath it," Pierce said.

Perk far from alone in targeting College athlete fear and uncertainty, but it's still scummy. I mean, look at the title of the piece lol.

[PushDaRock]

if you bothered the read the article, it's a reasonable allocation of risk. nothing shyster about it.

What? The entire conclusion (final section) lays out the concerns with it very clearly. This is the end of it:

Fox, Pierce and Peterson -- the Utah law professor -- all said Nilly's contracts include concerning clauses that make it easy for the company to determine that an athlete had breached the agreement.

For example, if an athlete does anything that Nilly determines to be "injurious to the reputation of the company," Nilly can terminate its deal, according to the contract obtained by ESPN. Ricciardi said the language is a "boilerplate" morality clause that exists in all licensing contracts. But Pierce said if Nilly found an athlete had violated the terms of their deal, the contract gives the company options to keep the athlete's future earnings until the contract date ends or sue him or her to recoup the initial upfront payment.

"The promise here that if you don't make it big you don't have to pay anything back has a lot of fine print underneath it," Pierce said.

Perk far from alone in targeting College athlete fear and uncertainty, but it's still scummy. I mean, look at the title of the piece lol.

This is language included in practically every player and endorsement contract. The NBA has a morality clause too, it only ever gets enforced in extremely rare circumstances. Lawsuits are very expensive and tends to be avoided whenever possible.

[GP2]

Something funny (and sad) about a player who was drafted out of high school pulling something like this.