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re: Former Gator Gervon Dexter files lawsuit over NIL deal
Posted on 9/6/23 at 12:17 pm to bigDgator
Posted on 9/6/23 at 12:17 pm to bigDgator
That would clearly violate usury laws, IMO. Yes, the player is dumb for signing something like this, but you can’t say 15% over future earnings… it’s a loan and the interest should be paid back based on the loan amount, not future earnings.
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Posted on 9/6/23 at 12:18 pm to ForeverGator
quote:
That would clearly violate usury laws, IMO. Yes, the player is dumb for signing something like this, but you can’t say 15% over future earnings… it’s a loan and the interest should be paid back based on the loan amount, not future earnings.
Not even close.
quote:
The maximum permissible interest rates in Florida are 18% per annum simple interest for loans up to $500,000.00, and 25% per annum simple interest for loans of $500,000.00 or more. Note that those figures represent simple interest per full calendar year.
Posted on 9/6/23 at 12:19 pm to bigDgator
Posted on 9/6/23 at 12:21 pm to bigDgator
quote:
15% of his pre-tax NFL earnings for the next 25 years in exchange for a one-time payment of $436,485 in 2022,
Either he knew his football career would be over quickly or the reason they invented conservatorships; see Michael Oher
Posted on 9/6/23 at 12:22 pm to bigDgator
quote:
Not even close.
Are you saying I am wrong?
If he pays back $1 million, that's 200% above the original loan amount, on a per annum basis, that's going to be well about 18%...
Posted on 9/6/23 at 12:23 pm to bigDgator
That is a really good business deal that BLA made.
Posted on 9/6/23 at 12:31 pm to Windy City
quote:
Unfortunately these scumbags have been at this for some time now and have so far survived a ton of litigation.
They even give you a lawyer to help you understand the contract, which is always an incredible red flag.
They will burn in hell along with all the other shylock predatory lenders, but the court system seems to back them to some extent until that day.
Here is the terrible human being behind this scam.
I mean its a bad deal for a sure fire big leaguer, but there is inherent risk on BLA's part. Only 10 percent of minor leaguers make it to the majors.
If the player doesn't make it to the show then BLA gets nothing.
I'm just trying to figure out how this kid couldn't piece together that "Big League Advance" was offering him a Big League Cash Advance
Posted on 9/6/23 at 12:35 pm to ForeverGator
quote:
clearly violate usury laws
Is there no decency left???
Posted on 9/6/23 at 12:40 pm to BevoBucks
Posted on 9/6/23 at 12:49 pm to bigDgator
Whatcha wanna bet BLA gave him a choice, pretax in exchange for 436K, or post tax in exchange for 240K and he was like, "aw hell naw, give me that 436K!"
Posted on 9/6/23 at 12:50 pm to ForeverGator
quote:
Are you saying I am wrong?
If he pays back $1 million, that's 200% above the original loan amount, on a per annum basis, that's going to be well about 18%..
It's not really a loan though, more of an investment
Posted on 9/6/23 at 12:52 pm to MNW
quote:
I'm just trying to figure out how this kid couldn't piece together that "Big League Advance" was offering him a Big League Cash Advance
If you believe the stories in the media, BLA may have messed this up by pitching the loan as an NIL deal. They supposedly did not comply with several Florida legal requirements.
quote:
Dexter's attorneys are asking a federal judge to void his agreement with BLA because it does not conform with Florida's NIL law and the state's athlete agent statute.
Specifically, his lawyers allege that the agreement did not include specific language required under the agent statute, the company failed to notify Florida athletic director Scott Stricklin of the deal, and BLA and its agents weren't licensed in Florida.
Posted on 9/6/23 at 12:56 pm to Harry Rex Vonner
The coursework in his Sports Management major wasn’t rigorous enough to even protect himself. Sad.
Posted on 9/6/23 at 1:01 pm to Windy City
quote:
If you believe the stories in the media, BLA may have messed this up by pitching the loan as an NIL deal. They supposedly did not comply with several Florida legal requirements.
Don't get me wrong, I'm definitely not pulling for BLA here. I hope they did mess up and get taken to task, but it seems like this guy has made it through a lot of litigation in the past.
It definitely doesn't fit the normal idea of NIL but its also not a loan, the kid basically sold 15% of his earning potential for a lump sum upfront. How that falls within Florida's NIL laws, idk
Posted on 9/6/23 at 1:05 pm to MNW
I’d love it if the NIL aspect was Dexter doing promos for BLA encouraging other “student”-athletes to consider their services.
Posted on 9/6/23 at 1:06 pm to bigDgator
quote:
quote:
That would clearly violate usury laws, IMO. Yes, the player is dumb for signing something like this, but you can’t say 15% over future earnings… it’s a loan and the interest should be paid back based on the loan amount, not future earnings.
Not even close.
quote:
The maximum permissible interest rates in Florida are 18% per annum simple interest for loans up to $500,000.00, and 25% per annum simple interest for loans of $500,000.00 or more. Note that those figures represent simple interest per full calendar year.
Your quote does't address his quote.
simple interest amounts are based on the amount borrowed. So an interest rate of 18% yearly (non-compounding) of 499,999.99 would mean a maximum amount of interest of 90,000 dollars per year.
Given he's looking at having to pay 250,000 per year... he's probably got a pretty good case.
Posted on 9/6/23 at 1:07 pm to MNW
quote:
Don't get me wrong, I'm definitely not pulling for BLA here. I hope they did mess up and get taken to task, but it seems like this guy has made it through a lot of litigation in the past.
It definitely doesn't fit the normal idea of NIL but its also not a loan, the kid basically sold 15% of his earning potential for a lump sum upfront. How that falls within Florida's NIL laws, idk
I hear you. No one feels bad that Fernando Tatis is only making 270 Million vs 300 Million of pre-tax earnings.
If there are two objectionable aspects, it is that they hit these kids at financial low points and they are pitching to a naïve audience with an aggregate history of financial stupidity.
VC partners are also scumbags, at least most of the ones I have dealt with, but they are at least investing in sophisticated groups that are also self-dealing and usually already wealthy.
Posted on 9/6/23 at 1:07 pm to Radio Zero
quote:
The coursework in his Sports Management major wasn’t rigorous enough to even protect himself. Sad.
I was in an accounting lab once, and a senior accounting major tutor was trying to explain something to me, and then he said "Uh, are you sure you want to major in accounting?"
And I switched my major
And all the while, finance is much easier - how many 19 year old finance majors would have helped him for no cost?
Posted on 9/6/23 at 1:11 pm to bigDgator
Obviously, very few people have 25 year careers in the NFL, but does that contract terminate when his NFL career is over? Or does he owe 15% pre-tax for any career he has after the NFL for up to 25 years?
Posted on 9/6/23 at 1:14 pm to Sid E Walker
quote:
Obviously, very few people have 25 year careers in the NFL, but does that contract terminate when his NFL career is over? Or does he owe 15% pre-tax for any career he has after the NFL for up to 25 years?
If he had become George Blanda, he would have been on the hook
quote:
Or does he owe 15% pre-tax for any career he has after the NFL for up to 25 years?
no
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