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Posted on 9/6/23 at 1:31 pm to bigDgator
For a 500 grand payout, a lender looking for a 10% return would expect to get 130 grand a year over 5 years (longer than the average NFL career). At 15% of pre-tax salary, that's a 5 year earnings of 3.4 million dollars, or about 865 grand a year.
That assumes a 100% chance of getting that payment back. In the case of injury or failure early in the NFL, the lender will get little or none. In the case of a long NFL career or a high draft choice, they'd get more.
But for players that don't get a second contract, anyone drafted after round 4 is only going to make that 10% return on investment if they play all 4 seasons of their rookie contract.
Jake Fromm, a 5th round draft pick, has made a total of 2.2 million dollars so far. If he had signed the same deal and doesn't get another contract... that would have been a 100,000+ loss for the lender.
Posted on 9/6/23 at 2:17 pm to bigDgator
Good. I want this NIL shiteshow to be shown for exactly what it is.
Posted on 9/6/23 at 3:07 pm to bigDgator
15% - really bad move, but whatever.
15% of pre-tax income, what in the hell, man? What were you thinking?
15% of pre-tax income, what in the hell, man? What were you thinking?
Posted on 9/6/23 at 3:16 pm to DawginSC
quote:
Jake Fromm, a 5th round draft pick, has made a total of 2.2 million dollars so far. If he had signed the same deal and doesn't get another contract... that would have been a 100,000+ loss for the lender.
Fromm wouldn't have gotten $500k. Maybe half that.
Posted on 9/6/23 at 3:30 pm to bigDgator
This isn’t NIL though is it? Looks like Big League Advance Fund just takes advantage of Athletes. Like a Check Cashing place.
Posted on 9/6/23 at 3:38 pm to bigDgator
Holy hell that’s the worst deal ever ….
Posted on 9/6/23 at 4:09 pm to bigDgator
Most schools have specific programs to teach student athletes about finances, taxes, contracts, etc.(I know Alabama does) since most of these guys have no idea about financial issues. Hell, some of them likely have never had a checking account of their on.
Posted on 9/6/23 at 4:15 pm to bigDgator
quote:
agreed to pay Big League Advance Fund (BLA) 15% of his pre-tax NFL earnings for the next 25 years
What a moron.
Posted on 9/6/23 at 4:19 pm to mckibaj
quote:
This isn’t NIL though is it? Looks like Big League Advance Fund just takes advantage of Athletes. Like a Check Cashing place.
Right.
Posted on 9/6/23 at 5:31 pm to bigDgator
So basically he agreed to a high interest loan. 
Posted on 9/6/23 at 5:56 pm to WG_Dawg
quote:
Thbis is what people wanted.
Let them get paid!
They desrve compensation!
It's not fair! Schools are treating them as slave labor and rakign in profits based on their performance!
Y'all wanted them to be professionals instead of amateur student athletes so here ya go. This dude was gonna be a multimillionare several times over in 36 months after graduating HS, but he simply coudln't wait. Now that it's a free for all he had to have his $400K RIGHT NOW dammit. And this is the result.
Don't throw the baby out with the bathwater just because of 1 dumbass player. Besides, players had already been getting "paid" for decades long before NIL.
Posted on 9/6/23 at 6:16 pm to GurleyGirl
quote:
So basically he agreed to a high interest loan.
It’s not a loan. It’s a really simple private equity-type transaction. And it’s not a bad deal for Dexter.
He essentially sold 15% of his POTENTIAL NFL “company” for about a half-million dollars. Based on the chances of players making it to the NFL, and the short career most have (average career is 3.3 seasons), Dexter’s deal really isn’t that bad. Average salary in the NFL is $2.7 m, and average career is 3.3 years. So the average player will make $8.91m. And that’s if the player ends up being as good as average. So it’s not an unreasonable hedge to sell off 15% of future earnings, that may never even come to fruition, for $436,000.
I would advise most potential NFL players to consider such a deal, because many will come out ahead in the deal.
Posted on 9/6/23 at 6:34 pm to ColoradoAg
quote:
Wow, you should always be able to read before you sign anything
Ok, ok I fixed it up a little for you ColoradoAg.
Posted on 9/6/23 at 6:42 pm to Trumansfangs
This should help Florida recruiting...
Posted on 9/6/23 at 6:53 pm to Redbonebandit
It's called big league advance fund what did he expect??
Also why did he need 400k and why is f the Florida athletic department and Napier not advising kids on this.
They've had massive frick ups with nil
Also why did he need 400k and why is f the Florida athletic department and Napier not advising kids on this.
They've had massive frick ups with nil
Posted on 9/6/23 at 7:03 pm to Enzos Tiny Pito
This was back when some Miami grad who is friends with John Ruiz managed our NIL. It's no surprise that recruiting got much better once he "volunteered" to step down.
Darren Heitner.
Darren Heitner.
This post was edited on 9/6/23 at 7:05 pm
Posted on 9/6/23 at 7:10 pm to BevoBucks
You can subtract 80 grand after he buys that new Charger.
Posted on 9/6/23 at 7:12 pm to Commander Rabb
I have no doubt he already blew the over $400k he got in college.
Posted on 9/6/23 at 7:22 pm to MetroAtlantaGatorFan
He signed it. Knew what he was doing. It’s a legally binding contract. Was it stupid? THAT is a totally different discussion.
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