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.
To pay the players their upfront money, Nilly raises funds by offering investors the opportunity to buy a share of a pool of contracts. The concept – which alleviates the risk that a single athlete might not be successful – is similar to mortgage-backed securities or collateralized debt obligations; Ricciardi was deemed the “grandfather of CDOs” by the Wall Street Journal for his role in popularizing the investment while working at Merrill Lynch in the 2000s.
I think it’s a bit unfair to characterize any “pooled” investment as CDOs but when the “grandfather of CDOs” starts getting creative that should be concerning.
“We’re all aligned to maximize their NIL earnings,” Ricciardi said. “We’re not an agent exactly, but we are a financial partner with them.”
I think it’s a fair assumption that anybody being this slippery about their role, and by extension their legal responsibility, is trying to get as close to the line of a crime as possible without crossing it.
I think it’s a bit unfair to characterize any “pooled” investment as CDOs but when the “grandfather of CDOs” starts getting creative that should be concerning.
I think it’s a fair assumption that anybody being this slippery about their role, and by extension their legal responsibility, is trying to get as close to the line of a crime as possible without crossing it.