Eagles: Nolan Smith set to owe a lot of money to controversial company
Philadelphia Eagles first-round rookie Nolan Smith is worried about one thing entering his rookie season: Get to the quarterback and make some damage. Proving he belongs on Sundays is probably the lone concern in his mind and rightfully so. But an intriguing sports business story making the rounds has recently brought a lot of attention […]
Philadelphia Eagles first-round rookie Nolan Smith is worried about one thing entering his rookie season: Get to the quarterback and make some damage.
Proving he belongs on Sundays is probably the lone concern in his mind and rightfully so. But an intriguing sports business story making the rounds has recently brought a lot of attention to a deal that means Smith is set to owe one company a lot of money throughout his entire career.
That's Big League Advantage, an investment fund that is "offering players capital to jumpstart their sports careers regardless of the outcome," per its website. In exchange, the company asks for athletes' future career earnings.
One of the biggest reasons athletes are attracted to this company is that they're not getting a loan. Had Nolan Smith not made it to the NFL, he wouldn't owe them a penny. In other words, the company serves as an investment fund that specializes in startups, which are very risky and most will fail. But the one that takes off pays the bills. Consider this: BLA will receive $27 million from baseball star Fernando Tatis Jr.
Joe Pompliano, a sports business blogger that does an amazing job breaking down stories like this one, put together a post on his Substack and Twitter outlining some of the most notable names to have made a deal with the company. While BLA's origin and specialty is in baseball, the Eagles rookie is one of their few NFL athletes.
Per Pompliano's estimations, Eagles rookie Nolan Smith will owe Big League Advantage between $120,000 to $1.2 million on his rookie deal alone.
Smith received an up-front cash payment in exchange for 1% to 10% of his future NFL earnings. He was required to have a lawyer present to review the contract before signing. And since it’s part of a NIL deal, Smith also agreed (by contract) to one social media post per month, two player appearances, and two content shoots.
And with Smith going in the first round of this year’s NFL Draft, he is set to owe Big League Advantage between $120,000 (1%) to $1.2 million (10%) on his rookie deal alone.
The company is facing some controversy as some have blamed them for being unethical. MLB superagent Scott Boras called their terms "usurious." At one point, MLB catcher Francisco Mejía claimed the company took advantage of him in a time of desperation. He later issued an apology.
The truth is that, predatory or not, this has been around sports forever. It's the way boxing has always worked, for example. Patrons will frequently cover an athlete's expenses in exchange for getting a cut of their future earnings.
For the Eagles' Nolan Smith, we hope it doesn't become an issue and hopefully, he's able to take care of his finances the right way.
Featured image via Maria Lysaker-USA TODAY Sports
