Nilly. This is the name of a company co-founded in February by Kendrick Perkins, the former Celtics center who is now a consultant on ESPN. This entity aims to help university athletes by directly lending them cash in exchange for a share of their earnings linked to the NIL (name, image and appearance) law, which allows them to sign contracts with sponsors. The initiative, led by Chris Ricciardi, a Wall Street financier, is raising concerns among some experts who fear it could take advantage of the financial vulnerability of these young athletes.
“There are so many athletes and their parents who have daily difficulties”, Kendrick Perkins defends himself. “Since we're actually taking a little bit of a risk on what the student-athlete is going to earn with the NIL law, the benefit is that the child – the student-athlete – can get financial security and not have to rushing. »
A form of very high rate loan
Nilly offers from 25,000 dollars to several hundred thousand dollars. In return, the company obtains exclusive rights to exploit the athlete's image for seven years (i.e. when he becomes professional), as well as a percentage (between 10% and 50%) of their NIL earnings during this period. period. While some companies give up equity in exchange for a percentage of athletes' future salaries, Nilly focuses on student-athletes' NIL earnings, becoming the first to offer advances in this area.
Although the stated goal of Kendrick Perkins and his associate is to relieve financial pressure on athletes, many experts believe that this model is akin to high-interest loans. They judge that these young people, often in financial difficulty, risk making impulsive decisions without fully understanding the long-term consequences. Nilly's standard contract, for example, includes a loan of $50,000 to a high school student in exchange for 25% of his future earnings, capped at $125,000.
Despite these concerns, Kendrick Perkins says his company actually helps athletes achieve immediate financial security. But experts warn of a lack of regulation in these new NIL opportunities, which could leave young athletes vulnerable to financial exploitation.
