A new company 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.
If the player makes nothing in NIL deals over the seven years of the contract, Nilly loses its $50,000 investment. If the player earns $200,000 in deals during the contract, Nilly receives $50,000 and recoups its initial investment. If the player earns $500,000, Nilly receives $125,000 – recouping its initial investment, plus $75,000 – the maximum the company can make from the contract.
There seems to be a maximum return on this. I am not mad at it. I would rather have a company like this looking at contracts and funding than a new NIL agent.
Also happens in motorsports. Sucks because you actually have to pay big money to make it to a point in racing that you can actually make millions, so this kid got screwed hard.
This is a thing in mlb, they pay a guy up front and take a percentage of his career earnings, it’s like reverse insurance for if your career never goes anywhere. https://www.washingtonpost.com/sports/2024/04/04/big-league-advantage-tatis-dexter/
There seems to be a maximum return on this. I am not mad at it. I would rather have a company like this looking at contracts and funding than a new NIL agent.
https://www.motorsport.com/f1/news/de-vries-loses-court-case-loan-alphatauri-f1-earnings/10571657/
Also happens in motorsports. Sucks because you actually have to pay big money to make it to a point in racing that you can actually make millions, so this kid got screwed hard.