The American Prospect - Wall Street Hits the Locker Room

Open Markets Institute’s legal director Sandeep Vaheesan was quoted in The American Prospect in an article on private equity investors entering the college sports market.

“You’d think if they’re so worried about the financial burden of paying players, [colleges] wouldn’t want to auction off another portion of the revenue to Wall Street,” Vaheesan said.

In 2022, Gervon Dexter, who starred at defensive tackle for the University of Florida’s football team, was entering his junior season, a pivotal year before players are officially eligible for the NFL draft. Dexter, a five-star recruit out of high school, was projected to be a top selection if he delivered another high-performing season.

In the near term, though, he found himself in the same financial bind as scores of college athletes before him: struggling to pay his bills, as most of his waking hours were devoted to training and attending classes. Despite receiving a full-ride scholarship, Dexter ran into some trouble with a high-interest auto loan he agreed to as an 18-year-old. He couldn’t pay rent at his apartment and got evicted. As the bills piled up, Dexter had his first child on the way.

Around this time, he received an email from a company called Big League Advantage, promising a six-figure financial opportunity that could unlock his market value and make all his troubles go away. By signing with them, Dexter immediately received more than $436,485 up front, more money than he’d ever seen before.

Read full article here.