The business of former NBA champion and current ESPN analyst Kendrick Perkins has come under fire for allegedly “preying on” student-athletes in high school and college. The NBA big man is a co-founder of ‘Nilly,’ an organization that pays players upfront in the range of $25,000 to hundreds of thousands.
After this payment, Nilly will get a portion of the athlete’s NIL agreement or seven years to use or sell the athlete’s name, image, and likeness. According to ESPN reporter Dan Murphy, Some financial counselors have disapproved of the company’s practices. For instance, according to reports, they believe that one of Nilly’s contracts is similar to a high-interest loan and question whether this is a costly price to pay to receive money quickly.
According to ESPN: “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.”
During the seven years of the contract, Nilly may deduct 10% to 50% of the player’s NIL profits. However, this business model has drawn criticism from many. Chris Ricciardi, the partner of the former Boston Celtics center, claims that it offers invaluable assistance to athletes who aspire to become professional athletes.
Fans Were Outraged Over Kendrick Perkins’ Predatory Lending NIL Scheme
Financial advisors and consumer protection specialists are wary of this approach because they believe it may exploit unskilled sportsmen. The agreement has drawn rapid condemnation from the public, many of whom expressed worries that it is predatory. Kendrick Perkins is under fire, as fans had much to say regarding this scheme.
Click on ‘Follow Us’ and get notified of the most viral NBA stories via Google! Follow Us
Perkins is getting criticized everywhere due to this NIL scheme and how it exploits the future of young athletes. However, few think the report is not entirely justifiable, and there’s more than meets the eye. After so many worries from experts and fans, only time will tell if the firm succeeds with NIL deal troubles and no clear procedures.
