NILLY: Kendrick Perkins’ NIL Platform Faces Ethical Scrutiny

Kendrick Perkins' NILLY platform offers college athletes cash advances but faces criticism for potentially predatory deals.

Apr 11, 2018; Cleveland, OH, USA; Cleveland Cavaliers center Kendrick Perkins (21) reacts in the third quarter against the New York Knicks at Quicken Loans Arena. Mandatory Credit: David Richard-Imagn Images / David Richard-Imagn Images

Former NBA champion and TV commentator Kendrick Perkins has attracted attention with the launch of NILLY, a platform designed to help college athletes navigate the intricacies of Name, Image, and Likeness (NIL) deals. Backed by Harlan Capital Partners, which has committed up to $200 million, NILLY aims to ease the financial strain on athletes by offering upfront payments in exchange for percentages of their NIL earnings. Yet, despite its seemingly positive and uplifting intentions, NILLY has faced scrutiny, with some questioning whether the model takes advantage of broke student-athletes needing quick cash.

Launched in February 2024, NILLY offers athletes cash advances ranging from $25,000 to several hundred thousand dollars. In return, the company secures exclusive rights to the athlete’s NIL for up to seven years, taking a portion of their future earnings, anywhere from 10% to 50%. Though this approach provides immediate financial relief, it has sparked concern among consumer protection advocates and financial advisers.

Perkins, who has an estimated net worth of $28 million, sees NILLY as a critical lifeline for athletes and their families, who often face significant financial challenges. "You have so many athletes and their parents who are struggling day-to-day," Perkins stated. "Because we're actually taking a bit of a gamble on what the student-athlete is going to make in the NIL space, the benefit is the kid, the student-athlete, gets financial security, so they don't have to rush."

However, financial experts are wary, suggesting that NILLY's contracts may resemble high-interest loans in disguise. Michael Haddix Jr., CEO of Scout, which provides financial education to athletes, commented, "It feels predatory, and it's capitalizing on young people who need money and haven't thought through the long-term implications." Likewise, Chris Peterson, a law professor at the University of Utah, bluntly labeled NILLY’s contracts as "trashy products designed to take advantage of young kids."

One case illustrates how much athletes might end up giving away. According to a contract obtained by ESPN, a high school senior received $50,000 upfront, agreeing to give NILLY 25% of his NIL earnings for seven years or until the company recoups $125,000, 2.5 times its original investment. Critics argue that deals like this can leave athletes with significant financial burdens long after they leave college, with some paying the equivalent of $75,000 in potential earnings just to access $50,000 upfront, a steep cost for short-term relief.

In defense, NILLY co-founder Chris Ricciardi argued that these are not loans but licensing agreements. "There’s no interest rate. There’s no requirement to pay back... it’s purely a licensing deal," he explained, emphasizing that NIL earnings are unpredictable and that NILLY assumes considerable risk by paying athletes without guaranteed returns. However, Mike Pierce, a former Consumer Financial Protection Bureau executive, advised caution, suggesting that the contracts’ fine print may reveal more. "The promise here that if you don't make it big, you don’t have to pay anything back has a lot of fine print underneath it."

As NILLY Continues to grow, with 20 athletes already signed on, the ethical debate around its model is gaining momentum. While Perkins and Ricciardi stand by the platform’s intent to provide immediate financial relief, critics warn that its structure could leave athletes with long-lasting financial challenges. The broader issue remains: Can NIL-focused ventures like NILLY truly empower athletes without taking advantage of them?