The landscape of collegiate athletics has dramatically shifted with the advent of Name, Image, and Likeness (“NIL”) opportunities. Recently, the launch of a new NIL company called Nilly (the “Company”) has sparked discussions, particularly around its implications for student-athletes. Nilly co-founder and former NBA player Kendrick Perkins has weighed in, drawing attention to the need for vigilance and awareness among young athletes navigating this complex environment.
What is Nilly?
Nilly is a company that aims to connect student-athletes with NIL opportunities, helping them capitalize on their personal brands. Nilly offers athletes upfront payments ranging from $25,000 into the hundreds of thousands. In return, Nilly gets the exclusive rights to use or sell the student-athlete’s NIL for up to seven years, and the Company and its investors receive between 10% and 50% of the student-athlete’s NIL earnings during that time period. While this initiative has the potential to provide significant benefits to student-athletes, including immediate financial assistance, it has also raised concerns about the nature of these opportunities and the protection of young individuals who may lack experience in the business realm.
Key Concerns Raised by Kendrick Perkins
In connection with creating the Company, Perkins has voiced strong opinions about the NIL landscape, emphasizing the risks that student-athletes may face. Specifically, his concerns include: (1) young athletes getting exploited by agents or companies looking to profit from their fame; (2) many student-athletes not having the financial education necessary to navigate complex contracts or manage newfound wealth; (3) ensuring that student-athletes understand their rights, obligations, and any potential pitfalls within these contracts; and (4) successfully balancing the student-athletes’ primary responsibilities—education and competitions.
Legal Implications and Responsibilities
For student-athletes, the situation surrounding Nilly and the broader NIL framework presents several critical considerations:
- Contract Review and Negotiation: NIL lawyers and legal professionals can assist student-athletes in reviewing and negotiating NIL contracts, ensuring that they are fair and transparent.
- Understanding Rights and Protections: Student-athletes must be aware of how to protect themselves against potential exploitation through educational opportunities about their rights under state laws and NCAA regulations.
- Financial Management Guidance: Collaborating with financial advisors and legal professionals can help student-athletes develop financial literacy and management skills to ensure long-term financial health.
- Compliance with NCAA Regulations: As student-athletes engage with NIL opportunities, legal counsel can provide guidance on maintaining compliance with NCAA rules to safeguard their eligibility.
Conclusion
The launch of Nilly and the conversations surrounding it, particularly those led by Kendrick Perkins, underscore the importance of a cautious and informed approach to NIL opportunities for student-athletes. As this landscape continues to evolve, the role of legal professionals becomes increasingly vital in protecting the interests of student-athletes.
Munck Wilson Mandala is one of the nation’s only law firms with a dedicated NIL and sports law practice. The Firm’s team of sports and NIL lawyers is equipped to address any legal matter related to sports law, intellectual property, or NIL. Whether a brand, university, or collective offering NIL deals, seeking to comply with rapidly changing laws, or in the midst of a NIL dispute, the WeAreNIL team is prepared to handle your legal needs.