Kendrick Perkins’ company Nilly faces backlash over NIL deals with college athletes

Kendrick Perkins’ company Nilly is under fire for offering college athletes upfront cash in exchange for NIL earnings.

ESPN NBA analyst Kendrick Perkins’ new company, Nilly, has sparked significant criticism and concern over its business model, which offers college athletes upfront cash in exchange for a portion of their future name, image, and likeness (NIL) earnings. 

While the company promotes the idea of providing financial security to athletes, critics warn that the arrangement could exploit young athletes, comparing it to high-interest loans.

According to ESPN, Nilly, co-founded by Perkins and Wall Street veteran Chris Ricciardi, offers athletes payments ranging from $25,000 to hundreds of thousands of dollars. In exchange, the company claims exclusive rights to the athlete’s NIL for up to seven years and takes between 10% and 50% of their NIL earnings. This model has raised red flags among consumer protection experts and financial advisers, who caution that such deals could prey on inexperienced athletes.

Public criticism has been swift, with many expressing concerns that the arrangement is predatory. One user on X, formerly Twitter, wrote, "You ought to be ashamed of yourself @KendrickPerkins. Stop trying to take advantage of high school kids who have no idea what they’re signing up for." Another user commented, "This is predatory as f*ck… Such a scumbag way to exploit these young athletes."

Perkins, however, defends the company, stating that it offers financial security for athletes and their families by providing immediate funds. Still, the long-term impact of these deals remains under scrutiny, particularly given the significant percentage of earnings Nilly could take from athletes.

Nilly has already signed contracts with 20 athletes, but the backlash suggests the company may face increasing pressure over whether its model benefits or exploits the athletes it claims to support.