*Kendrick Perkins, along with Wall Street investor Chris Ricciardi, has co-founded Nilly, a company that offers college athletes cash advances in exchange for exclusive rights to their name, image, and likeness (NIL) for seven years.
According to Fadeaway World, athletes can receive anywhere from $25,000 to several hundred thousand dollars upfront, with Nilly and its investors earning 10-15% of the athletes’ NIL income during that period. This model is unique because it gives athletes direct access to money without tying it to potential future professional earnings.
Perkins, drawing from his own experiences as a student-athlete, aims to ease financial burdens for college athletes. Nilly has already signed contracts with 20 athletes, mostly from football and men’s basketball. A typical contract might give an athlete $50,000 upfront, with Nilly collecting 25% of their NIL earnings until they make $125,000, or 2.5 times the initial advance.
Speaking to ESPN, Perkins said, “You have so many athletes and their parents who are struggling day-to-day. Because we’re actually taking a bit of a gamble on what the student-athlete is going to make in the NIL space, the benefit is the kid — the student-athlete — is able to get financial security so they don’t have to rush.”
While Nilly’s founders claim the deal isn’t a loan and athletes aren’t required to repay if they fail to earn enough through NIL, financial experts have raised concerns. They argue that the contracts resemble high-interest loans, potentially exploiting young athletes who need quick cash but may not fully understand the long-term consequences. Additionally, the contracts include obligations such as social media posts, autograph signings, and public appearances, but Nilly doesn’t help athletes secure NIL deals.
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Experts worry that the contracts might legally be deemed as loans or income-sharing agreements, which could expose Nilly to legal challenges. The inclusion of a morality clause allowing Nilly to terminate contracts and claim future earnings is another red flag. Ultimately, these deals are a significant gamble for athletes, as they could end up sacrificing substantial future earnings for short-term financial relief.
ESPN’s Dan Murphy wrote: “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. It feels predatory, and it’s capitalizing on young people who need money and haven’t thought through the long-term implications.”
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