The NIL craze had given college football players a chance to finally make some money. It has also created opportunities for others to potentially prey upon them.
Bears defensive tackle Gervon Dexter claims he was victimized by unscrupulous NIL practices. He recently filed a lawsuit seeking to invalidate an NIL arrangement that allegedly violates applicable Florida law.
Here’s a link to the full lawsuit, as posted by Pete Nakos of On3Sports. The action seeks a declaratory judgment that the contract is not enforceable.
Dexter claims that he agreed to pay Big League Advance Fund 15 percent of all pre-tax NFL earnings for the next 25 years in exchange for a one-time payment of $436,485 in 2022. As a second-round pick, Dexter signed a four-year, $6.72 million contract with the Bears. Fifteen percent of that amount is $1.008 million.
Florida representative Chip LaMarca, who proposed the state’s NIL law, recently said the Dexter contract amounts to a “predatory loan,” via Mark Schlabach of ESPN.com.
The Florida NIL law includes this provision: “The duration of a contract for representation of an intercollegiate athlete or compensation for the use of an intercollegiate athlete’s name, image or likeness may not extend beyond her or his participation in an athletic program at a postsecondary educational institution.”
Florida removed that term from its NIL law in 2022 (because, well, Florida). Dexter’s deal was done with the prior provision in place.
The payment obligation clearly transforms the arrangement from NIL into speculation. The company pays a small amount of money up front, and it hopes to get more money back later if/when the player makes it to the NFL. That’s not how endorsement deals should operate.
