The business model of ESPN NBA analyst Kendrick Perkins’ new company, Nilly, which offers college athletes upfront cash in exchange for a portion of their future name, image, and likeness (NIL) earnings, has sparked significant criticism and concern.
While the company promotes the idea of providing athletes with financial security, critics warn that the arrangement could be used to exploit young athletes, comparing it to loans with high interest rates.
ESPN claims that Nilly, a company co-founded by Perkins and Wall Street veteran Chris Ricciardi, provides athletes with compensation ranging from $25,000 to hundreds of thousands of dollars. In exchange, the business takes 10% to 50% of the athlete’s NIL earnings and claims exclusive rights to the NIL for up to seven years. Financial advisors and experts in consumer protection have raised concerns about this model because they are concerned that deals like this one could exploit inexperienced athletes.
The arrangement has received swift public criticism, with many expressing concerns about its predatory nature. “You ought to be ashamed of yourself @KendrickPerkins,” a former Twitter user on X wrote. Stop attempting to exploit high school students who are unaware of their obligations. “This is predatory as f*ck… Such a scumbag way to exploit these young athletes,” said another user.
However, Perkins argues in favor of the business, pointing out that it provides athletes and their families with immediate financial security. However, given Nilly’s potential access to a sizable portion of athletes’ earnings, the long-term effects of these deals are still under scrutiny.
Despite the fact that Nilly has already signed contracts with 20 athletes, the backlash suggests that the business may be under more pressure to decide whether its model helps or hurts the athletes it claims to support.
