Former A&M Player Warns A&M Recruits to Examine NIL Contracts

[A_Slab_of_Bacon]

https://x.com/waom_/status/1747677205738516988?s=46

Presumably when dude transferred FROM A&M something he didn't like happened with his A&M NIL deal. Maybe a claw back? Hard to know for sure.

IMO some standardization about NIL deals such as "no claw backs" and such should be a part of this deal. Once the check clears it should be the player's money and that's the end of it. Would make deals easier for everyone to understand.

 

[Out State Gopher]

What are the 5 characteristics of a valid contract?


Offer, acceptance, awareness, consideration, and capacity are the five elements of an enforceable contract. An agreement's "why", or contract terms, are spelled out in its offer, which outlines what each party commits to do or not do as part of the agreement's conditions. The time to talk to a lawyer is before you need one. Failing to prepare for a test is preparing to fail a test.

 

[Pompous Elitist]

Maybe a 1099 arrived…

This NIL was always going to be ”interesting”. The types of people that have the leisure money to give to SAs have lawyers that know how to write one-sided contracts. Did an attorney/agent look at it. The tweet doesn’t shout sophisticated.

Or, this could be an inducement and effort by an Ole Miss booster to plant doubt, torpedo A&M. One of Kiffin’s pals.

 

[Bob_Loblaw]

https://x.com/waom_/status/1747677205738516988?s=46

Presumably when dude transferred FROM A&M something he didn't like happened with his A&M NIL deal. Maybe a claw back? Hard to know for sure.

IMO some standardization about NIL deals such as "no claw backs" and such should be a part of this deal. Once the check clears it should be the player's money and that's the end of it. Would make deals easier for everyone to understand.

Why? We let other businesses and people contract as they see fit. These players want to be treated as professionals, let them negotiate their own deals or pay to have someone negotiate deals for them. That's what professionals do.

 

[MNVCGUY]

So much grey area with these pay for play deal. I am sure there is all kinds of bait and switch or unfulfilled promises where a player is told they will get some crazy sum and it never comes through.

You would hope players are being smart and having someone handle the particulars for them as they have been allowed to do. But I am sure there are going to be lots of cases where guys don't end up getting anything close to what they thought they would.

 

[Bob_Loblaw]

Maybe a 1099 arrived…

This NIL was always going to be ”interesting”. The types of people that have the leisure money to give to SAs have lawyers that know how to write one-sided contracts. Did an attorney/agent look at it. The tweet doesn’t shout sophisticated.

Or, this could be an inducement and effort by an Ole Miss booster to plant doubt, torpedo A&M. One of Kiffin’s pals.

My guess is that he paid the $200 to have someone look at it now to point out the confirm the meaning of the clause in question (or more likely confirming that the clause says what he hoped it didn't).

I feel bad for the kid but unfortunately this is the new world of NCAA athletics. If these players are being diligent, it's probably a safer world in the past. These deals at least are official contracts other than wink & nod deals made in the back of some Honda dealership in Lubbock.

 

[CentralGopher]

My guess is that he paid the $200 to have someone look at it now to point out the confirm the meaning of the clause in question (or more likely confirming that the clause says what he hoped it didn't).

I feel bad for the kid but unfortunately this is the new world of NCAA athletics. If these players are being diligent, it's probably a safer world in the past. These deals at least are official contracts other than wink & nod deals made in the back of some Honda dealership in Lubbock.

I don’t feel bad for him. If he didn’t read his contract that’s on him.

 

[Bob_Loblaw]

I don’t feel bad for him. If he didn’t read his contract that’s on him.

I feel bad for him in the sense that I would feel bad for anyone who isn't experienced or wise enough to even know how to be duly diligent. It's going to take a few of these people getting burned for, hopefully, others to wise up and have some representation on these deals.

 

[60's Guy]

Seems obvious a lot of guys are getting money to transfer and that supposedly is not allowed.
For instance the Alabama freshman DB who was considered their MVP for his performance.
He's going to Georgia for a lot of money, supposedly. Sharks circling Alabama....WR to Texas.
We know those schools pay big money...aren't they going to get caught here at some point?
Seems pretty obvious, if there really are rules?

 

[Sparlimb]

There was a guy last year who discovered his NIL deal granted the company he signed with something like 5 or 10% of his NFL earnings. There was a backlash about that I recall.

NFLer’s Suit Draws Big League Advance Into NIL Pay Vortex

In a complaint recently filed in a Florida federal court, Chicago Bears defensive tackle Gervon Dexter Sr. argues a contract he signed with Big League Advance (BLA) as a college football star is void and unenforceable, the latest blow to a type of financing for young athletes that has...

sports.yahoo.com

 

[Slim Tubby]

As a college athlete, if you want to be paid and treated like a professional, you better be prepared to conduct financial transactions like one. NIL just oozes predatory behavior.

 

[gopherphil]

Sleaze bags taking advantage of 20 yo. Who would’ve thought that.

 

[FredCoxRocks]

As a college athlete, if you want to be paid and treated like a professional, you better be prepared to conduct financial transactions like one. NIL just oozes predatory behavior.

True. Players got what they wanted. Time to be adults now.

 

[USAF]

There was a guy last year who discovered his NIL deal granted the company he signed with something like 5 or 10% of his NFL earnings. There was a backlash about that I recall.

NFLer’s Suit Draws Big League Advance Into NIL Pay Vortex

In a complaint recently filed in a Florida federal court, Chicago Bears defensive tackle Gervon Dexter Sr. argues a contract he signed with Big League Advance (BLA) as a college football star is void and unenforceable, the latest blow to a type of financing for young athletes that has...

sports.yahoo.com

"Discovered"?

He knew exactly what he agreed to at the time he agreed to it.

He got $485k up front. With no need to pay it back if he didn't earn a penny from the NFL.

Nothing predatory here.

 

[Sparlimb]

Sleaze bags taking advantage of 20 yo. Who would’ve thought that.

I'm just jealous I didn't think of it.

 

[Bob_Loblaw]

There was a guy last year who discovered his NIL deal granted the company he signed with something like 5 or 10% of his NFL earnings. There was a backlash about that I recall.

NFLer’s Suit Draws Big League Advance Into NIL Pay Vortex

In a complaint recently filed in a Florida federal court, Chicago Bears defensive tackle Gervon Dexter Sr. argues a contract he signed with Big League Advance (BLA) as a college football star is void and unenforceable, the latest blow to a type of financing for young athletes that has...

sports.yahoo.com

This is the entire purpose of the deal. This deal essentially bought equity in the player. It's the exact same scenario we see on Shark Tank - - "i'll pay you $500K for 15% of future stake". The investor is taking the risk of the player not ever making the NFL or making enough money to pay them back. This type of equity deal is incredibly common in all kinds of businesses.

His argument that the company was not registered as an agent is just bizarre. In what world would they be acting as his agent on a contract with them?

 

[Bob_Loblaw]

Seems obvious a lot of guys are getting money to transfer and that supposedly is not allowed.
For instance the Alabama freshman DB who was considered their MVP for his performance.
He's going to Georgia for a lot of money, supposedly. Sharks circling Alabama....WR to Texas.
We know those schools pay big money...aren't they going to get caught here at some point?
Seems pretty obvious, if there really are rules?

Who is going to catch them? The same institution that is pretending like they didn't know this was inevitable?

 

[Pompous Elitist]

There was a guy last year who discovered his NIL deal granted the company he signed with something like 5 or 10% of his NFL earnings. There was a backlash about that I recall.

NFLer’s Suit Draws Big League Advance Into NIL Pay Vortex

In a complaint recently filed in a Florida federal court, Chicago Bears defensive tackle Gervon Dexter Sr. argues a contract he signed with Big League Advance (BLA) as a college football star is void and unenforceable, the latest blow to a type of financing for young athletes that has...

sports.yahoo.com

As Bob said this type of thing is part and parcel of desperate or stupid people everywhere. Sometimes even relatively sophisticated people will sell off their future revenue for a pittance.

In this case Sportico has obtained Dexter’s BLA contract. BLA agreed to pay him a $436,485 fee—which Dexter argues he should keep—in exchange for Dexter paying BLA 15% of his pre-tax NFL earnings for 25 years.

The specifics of whether the contract are enforceable (the level of incompetence even at white white shoe international law firms employing former government officials are astonishing, and this looks like a relatively run of the mill podunk predatory investment fund based out of, of course, Delaware). can be hashed out by the lawyers but that’s $$ on top of $$. If you’re going to swim with the sharks you better be asking for more than $436K, LMAO.

One can envision a future of usurious products like this for everyday items, cars, homes, education. I’d argue this person Dexter was not a “sophisticated investor” so to speak and had no business signing such a contract. I’d argue these agreements preying on the unsophisticated -should be- illegal. I’d argue the investors in this firm find better uses for their funds than predatory schemes and gimmicks. Surely there are vet clinics, car washes, plumbing businesses willing to entertain buyouts or has that well gone dry.

 

[WAGopher]

As Bob said this type of thing is part and parcel of desperate or stupid people everywhere. Sometimes even relatively sophisticated people will sell off their future revenue for a pittance.

In this case Sportico has obtained Dexter’s BLA contract. BLA agreed to pay him a $436,485 fee—which Dexter argues he should keep—in exchange for Dexter paying BLA 15% of his pre-tax NFL earnings for 25 years.

The specifics of whether the contract are enforceable (the level of incompetence even at white white shoe international law firms employing former government officials are astonishing, and this looks like a relatively run of the mill podunk predatory investment fund based out of, of course, Delaware). can be hashed out by the lawyers but that’s $$ on top of $$. If you’re going to swim with the sharks you better be asking for more than $436K, LMAO.

One can envision a future of usurious products like this for everyday items, cars, homes, education. I’d argue this person Dexter was not a “sophisticated investor” so to speak and had no business signing such a contract. I’d argue these agreements preying on the unsophisticated -should be- illegal. I’d argue the investors in this firm find better uses for their funds than predatory schemes and gimmicks. Surely there are vet clinics, car washes, plumbing businesses willing to entertain buyouts or has that well gone dry.

This scam is definitely not NLI. Another reason there should serious attention from lawmakers, especially since they passed a law creating NIL, without much forethought on the affects it could have.

 

[Pompous Elitist]

This scam is definitely not NLI. Another reason there should serious attention from lawmakers, especially since they passed a law creating NIL, without much forethought on the affects it could have.

The player, Dexter, was rated #6 in the nation with a 100 composite as a recruit. He signed away 15% of his future pre-tax NFL income in perpetuity for $436K. I mean, the player “should” know not to sign an INSANELY bad deal…but many of these are figuratively babes in the woods. Someone needs to be looking out for the young players (or really anyone vulnerable due to youth, inexperience, disability, or cognitive decline to predatory schemes). Legal requirements or clearinghouses for valid contracts for unsophisticated parties, and so on. It’s just sad all around, for everyone. Pathetic this is how some earn passive income. I could go on.

 

[Out State Gopher]

This scam is definitely not NLI. Another reason there should serious attention from lawmakers, especially since they passed a law creating NIL, without much forethought on the affects it could have.

Remember politicians campaign on problems they never solve problems.

 

[A_Slab_of_Bacon]

There is a weird structural dynamic that is ... unique that doesn't really make easy answers ... easy.

You have schools who offer something to attend and play.

You have outside parties who sometimes offer MORE for the player to attend and play.

There's no magic here legally that makes everyone behave here. If some random disconnected person came and offered me a ton more money for no apparent reason to go work elsewhere at a place willing to hire me ... I might find it hard to say no.

And there's no legal mechanism that really prevents that from happening anywhere, except that it just makes no sense generally .... except in college athletics.

 

[MplsGopher]

This mainly applies to the special, high-dollar one-off contracts that top stars are able to get, going directly to local businesses and rich folks.

When it's all run through the collective, that will take care of this kind of thing. The payola/payroll scheme will make sure no funny business occurs on the player payroll contracts.

 

[short ornery norwegian]

note - players are allowed under NIL rules to hire an agent or advisor to work with them for NIL purposes only. the agent can help line up NIL deals and also make sure that the player is treated fairly, and that all relevant tax forms are filed, etc.

and now the rules (such as they are) are being adjusted so that schools can also provide some NIL guidance. I think the exact lingo is "NIL related planning."

hopefully players have someone around them - family, friends, relatives, whoever - who can give them some advice and keep them from signing a bad deal.

 

[Jack jones]

According to the Iowa Girls website, you can buy a ticket to the Iowa -Northwestern game for as low as 758 dollars. Catlin Clark should get a portion of the gate receipts.

 

[Bob_Loblaw]

This scam is definitely not NLI. Another reason there should serious attention from lawmakers, especially since they passed a law creating NIL, without much forethought on the affects it could have.

This isn’t a scam. It’s literally the same thing as private equity investing in start ups.

It is a NIL in this scenario too. They are willing to risk their capital investment if the player is willing to perform certain conditions based on selling their name and imsge.

This stuff happens every single day. Many snall business owners are desperate for capital investment.

 

[WAGopher]

This isn’t a scam. It’s literally the same thing as private equity investing in start ups.

It is a NIL in this scenario too. They are willing to risk their capital investment if the player is willing to perform certain conditions based on selling their name and imsge.

This stuff happens every single day. Many snall business owners are desperate for capital investment.

I’ll concede that maybe the deal itself wasn’t a scam, but we don’t know how the terms were presented to him.

However, this was not a Name Image Likeness contract. As you say, it was a capital investment risking their money for great rewards if the player makes it into the NFL. NIL was the cover used to present something else entirely.

 

[Bob_Loblaw]

I’ll concede that maybe the deal itself wasn’t a scam, but we don’t know how the terms were presented to him.

However, this was not a Name Image Likeness contract. As you say, it was a capital investment risking their money for great rewards if the player makes it into the NFL. NIL was the cover used to present something else entirely.

Im not sure if it was. I think NIL is the collateral on the investment. I don’t really think many business deals are a singular thing. For capital investments in tech, are those tech deals? Are they pure investments? Are they used to make sure your investments are diversified? Typically, yes, they serve all of those purposes at the same time.

This is an investment in the player with a way for the investor to start capitalizing through NIL right away.

It’s like if you invested in rental properties. You make money from the investment (hopefully the propert appreciates in value) and the rent.

 

[WAGopher]

Im not sure if it was. I think NIL is the collateral on the investment. I don’t really think many business deals are a singular thing. For capital investments in tech, are those tech deals? Are they pure investments? Are they used to make sure your investments are diversified? Typically, yes, they serve all of those purposes at the same time.

This is an investment in the player with a way for the investor to start capitalizing through NIL right away.

It’s like if you invested in rental properties. You make money from the investment (hopefully the propert appreciates in value) and the rent.

I guess I fail to see how it has anything to do with NIL, but is rather an investment on the player’s future earnings.

 

[Pompous Elitist]

This isn’t a scam. It’s literally the same thing as private equity investing in start ups.

It is a NIL in this scenario too. They are willing to risk their capital investment if the player is willing to perform certain conditions based on selling their name and imsge.

This stuff happens every single day. Many snall business owners are desperate for capital investment.

The athletes are definitely being sold a boat load of garbage. Check out the marketing videos on The BLA site.

Oh, private equity is quite capable of “scamming” investors out of money as well on false pretenses, inscrutable financials, promises. Usually it’s a victimless crime, greed on greed crime so to speak. You won’t hear about the $ lost (usually) due to NDAs and the layers of ownership and the legal protections afforded under their disclosures, releases, and current law. Shame.

Expensive lessons! Read the docs. Assume the worst. Avoid dealing with PE….if possible.