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NIL Thread (Name, Image, Likeness Rule)
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<blockquote data-quote="sbillini" data-source="post: 2046788" data-attributes="member: 10496"><p>Essentially looks like:</p><p></p><p>- Pay the athlete an upfront sum (generated from investor funds) to acquire "0-25%" of the NIL rights for that athlete. </p><p>- From that 0-25%, some of it "could" be shared with the investors</p><p>- Work with the athlete to maximize the NIL revenue (and, thus, maximize the 0-25% share)</p><p></p><p>Actually doesn't seem that shady upfront. When you think about it, sports agents kind of do the same thing, though I don't think they ask for an upfront payment, so sports agents have more skin in the game than this kind of system does. </p><p></p><p>But, to me, the most concerning part is the "Investors could revenue a multiple of investment". That seems overly vague. </p><p></p><p>Secondarily, you have an adverse selection risk here. The athletes most likely to sign up for this are those that want to unload some of their NIL risk and receive the cash up front. The natural question is why would they want to do that? I guess there's other reasons as well - cash strapped families?</p><p></p><p>The most interesting thing here is whether they can add some sophistication to the NIL sponsorship process. Maybe even get some national deals for athletes. Perhaps, not sold on that, but if they can raise the ceiling for what athletes NIL possibilities, could be a real business. </p><p></p><p></p><p></p><p>[ATTACH=full]32708[/ATTACH]</p></blockquote><p></p>
[QUOTE="sbillini, post: 2046788, member: 10496"] Essentially looks like: - Pay the athlete an upfront sum (generated from investor funds) to acquire "0-25%" of the NIL rights for that athlete. - From that 0-25%, some of it "could" be shared with the investors - Work with the athlete to maximize the NIL revenue (and, thus, maximize the 0-25% share) Actually doesn't seem that shady upfront. When you think about it, sports agents kind of do the same thing, though I don't think they ask for an upfront payment, so sports agents have more skin in the game than this kind of system does. But, to me, the most concerning part is the "Investors could revenue a multiple of investment". That seems overly vague. Secondarily, you have an adverse selection risk here. The athletes most likely to sign up for this are those that want to unload some of their NIL risk and receive the cash up front. The natural question is why would they want to do that? I guess there's other reasons as well - cash strapped families? The most interesting thing here is whether they can add some sophistication to the NIL sponsorship process. Maybe even get some national deals for athletes. Perhaps, not sold on that, but if they can raise the ceiling for what athletes NIL possibilities, could be a real business. [ATTACH type="full"]32708[/ATTACH] [/QUOTE]
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NIL Thread (Name, Image, Likeness Rule)
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