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Amid Kendrick Perkins making claims about NBA teams, some news about his NIL (name, image, and likeness) company ‘NILLY' was under fire for its predatory practices on athletes.
ESPN's Dan Murphy published a story detailing the practices of NILLY. One of the excerpts says, “In the case of the contract obtained by ESPN, the player could end up giving Nilly the equivalent of a $75,000 fee in exchange for the guarantee of immediate access to $50,000 upfront.”
With former players like Pat McAfee pledging money to NIL collectives, it still doesn't eliminate some players needing money immediately. After all, some players now enter college to get paid to support their families. However, if that player becomes a star, then NILLY reaps all of the benefits.
What does Kendrick Perkins, NILLY do?
One of the main concerns is although they offer money upfront, it's how they offer it. The ESPN article gave another example of the structuring. For example, “If a player makes nothing in deals over the seven years of the contract, they lose its initial $50,000 investment. However, if the player earns $200,000 in deals during the contract, they receive $50,000 and recoup their initial investment.
“If the player earns $500,000, they receive $125,000 — recouping its initial investment, plus $75,000 — the maximum the company can make from the contract.” While the money upfront is crucial, it's not certain if they disclose how much they take when an athlete makes a certain amount of money. Luckily, NIL athletes can have legal representation throughout the signing process.
Regardless, the shady business practices aren't appealing to people who want to sign with a trusted name. Perkins is a trusted sports figure but NIL is a different beast. Also, offering $50,000 upfront is enticing for many people but also finding out how much NILLY gets will be equally important. Players won't have to pay anything back if they don't make it big but there's more fine print underneath the contract if they do.
