Former NBA player and current ESPN analyst Kendrick Perkins is facing significant backlash on social media after revelations about his involvement in a business venture that critics are calling exploitative. The controversy stems from a report by ESPN college football writer Dan Murphy, which details how a company co-founded by Perkins is offering college athletes upfront cash in exchange for a portion of their future name, image, and likeness (NIL) earnings.
The company, called Nilly, provides athletes with upfront payments ranging from $25,000 to hundreds of thousands of dollars. In return, the athletes sign over exclusive rights to their NIL for up to seven years. The company, along with its investors, takes a cut of the athlete’s NIL earnings, with the percentage ranging from 10% to 50% over the course of the contract. The report highlights an example where Nilly offered a high school senior $50,000 in exchange for a 25% cut of his NIL earnings over seven years, or until Nilly recoups 2.5 times its initial investment—whichever comes first.
Perkins defended the business model, emphasizing that the company is helping reduce financial strain for young athletes and their families. “You have so many athletes and their parents who are struggling day-to-day,” Perkins said. “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 — is able to get financial security so they don’t have to rush.”
Despite Perkins’ intentions to provide financial relief, critics on social media are calling the practice predatory. Many argue that the long-term costs to young athletes far outweigh the short-term financial gains, labeling the business model as exploitative.
“This is predatory as ****, goodness Christ. Such a scumbag way to exploit these young athletes,” one person tweeted, summing up the sentiment of many.
RELATED: Charles Barkley Went Scorched Earth on Kendrick Perkins Following Criticism
Matt Brown, a college football writer, also weighed in, adding, “These guys tried to get me to write about them earlier this year. Not only do I think this model is highly predatory and bad for athletes…I don’t even think it’s a great business for the company! Gross all the way around.”
Another critic chimed in, “Everyone in college sports is competing for having the worst idea and boy howdy this is a contender.”
The response has been overwhelmingly negative, with many accusing Perkins and his co-founder, Wall Street veteran Chris Ricciardi, of taking advantage of young athletes who may not fully understand the long-term consequences of signing over a portion of their NIL earnings.
While Perkins insists that the company is helping relieve financial pressure on struggling families, the optics of the situation have raised questions about whether the deal truly benefits the athletes or simply profits off their potential.
The concept of NIL deals has been a game-changer for college and high school athletes, allowing them to capitalize on their talents before turning professional.
However, the rapid rise of NIL deals has also opened the door for companies looking to profit from young athletes, and the controversy surrounding Nilly adds fuel to the growing debate over how these athletes are being treated in this new financial landscape.
While Perkins may not be the first person to engage in this kind of business, the negative reaction to his involvement is particularly pointed because of his public persona as an advocate for athletes. Many are now questioning whether his actions align with his claims of helping young athletes succeed.
As the criticism mounts, it remains to be seen whether Nilly will face further scrutiny or adjust its business practices in response to the backlash.
For now, though, Kendrick Perkins finds himself in the middle of a storm that threatens to tarnish both his reputation and his role as a mentor to young athletes.
