[Goose]

I can tell you that is not true when we hire consultants in my industry because of the potential for it to be viewed as an illegal kickback.  We are not strictly limited to FMV calculations, but if we deviate from them, there needs to be a clear justification.  I suspect that will be the case for athletes.

BC

I can see that, because in Biotech there may be a reason to believe that the consultant could have influence in other matters. It is an internally created restriction, not an external one. That is a completely different situation. Your firm just doesn't want to risk a lawsuit. Your lawyers are the "problem". There is no "bureau of consultant compensation" run by a third party that tells you what you may pay. I would also suggest that often consulting contracts contain non-compete clauses that make it attractive to hire a consultant just to ensure no competitor can. Nobody can file suit over that.

I can think of no reason anybody could sue a third party for "overpaying" for an NIL contract to a college athlete. Their is no improper conduct involved. The athlete is being paid to meet the requirements of the contract. If that involves maintaining a position on a college football team, so what? Nothing illegal about that. A certain code of conduct may also be involved, along with a particular hair length. Again, so what?

[Goose]

I can tell you that is not true when we hire consultants in my industry because of the potential for it to be viewed as an illegal kickback.  We are not strictly limited to FMV calculations, but if we deviate from them, there needs to be a clear justification.  I suspect that will be the case for athletes.

BC

I can see that, because in Biotech there may be a reason to believe that the consultant could have influence in other matters. It is an internally created restriction, not an external one. That is a completely different situation. Your firm just doesn't want to risk a lawsuit. Your lawyers are the "problem". There is no "bureau of consultant compensation" run by a third party that tells you what you may pay. I would also suggest that often consulting contracts contain non-compete clauses that make it attractive to hire a consultant just to ensure no competitor can. Nobody can file suit over that.

I can think of no reason anybody could sue a third party for "overpaying" for an NIL contract to a college athlete. Their is no improper conduct involved. The athlete is being paid to meet the requirements of the contract. If that involves maintaining a position on a college football team, so what? Nothing illegal about that. A certain code of conduct may also be involved, along with a particular hair length. Again, so what?