For those that may not be familiar with We Will and NIL, how capable is earmarking for MBB?
Do you know of any NIL collectives/AD that do options?
Say, an investor gives $xx but has the right to some portion of that back if some condition not met- ideally revenue for the AD, but also certain number of wins, certain players retained or acquired. You sold an option.
For player retention or acquisition, it would be more conventional for you to buy an option, the right to such funds, if they’re needed (in other words, successful retention or acquisition and costs incurred). Basically, you’re buying insurance in case of some event occurring and you need funds, or either by paying fans a premium or more likey with fans donating the coverage.
But given the counterparty risk in crowdsourcing such obligations , you’d need to get the funds first, at least in escrow, with return of funds if the event didn’t occur.
I feel like it would be easier to crowdsource NIL if small donors felt like they had certainty, removing the feeling their donation is too small to make certain something happens while also mitigating the public good nature of NIL
Obviously wins and rights to revenue are harder to sell an option on, as if we don’t win and the AD has the obligation to pay back, we’re in a jam, but that’s not too different than what we’re going to need to do with PE, and better than anytime we borrow now to make more in the future