Gervon Dexter sues to get out of 25 year NIL Deal.

[TwistedChief]

Originally Posted by DJ's left nut

That $430K with interest rates being what they are will double pretty easily over about 6 years

First, interest rates are projected to go from the lows 5s to the mid 3s over the next 6yrs so assuming constant rates is flawed.

Second, but if you want to assume simplicity at current 5.25 spot rates, it takes you more like 13-14 years to double your money (rule of 72). For you to be right in terms of doubling your money over 6yrs, one would need to be receiving around 12% and there’s nothing remotely riskless that involves that return.

Third, that $430k is pre-tax. I think his effective federal tax rate (I’ll assume Florida so no state and local) would be about 31% which means he actually takes home a bit less than 300k of it. Meanwhile of course he’s paying out pre-tax income through the life of the deal.