The deferred compensation proceeds from a sports contract or executive employment agreement can become an immediate source of cash for an athlete or executive, today rather than in the future, through the use of Monetization Financing. SGC works with professional sports agents and advisors representing professional basketball players, baseball players, football players, and athletes in many other sports, helping put them in control of their own earning power sooner rather than later.
The benefit of these financial transactions is significant: a professional athlete or executive gets direct access to and control over significant portions of future cash flows due to be received over multiple years. These earnings can be used to satisfy immediate obligations, or can be used for investment purposes, potentially generating additional future income.
SGC can structure benefit payments on a non-recourse basis, so that the professional athlete or executive receives and keeps the full benefit, regardless of what happens to their team, company or sponsor. Athletes and executives can choose to monetize all or only a portion of their deferred compensation.
Sample Transaction : A former first round draft pick of an NBA team negotiated a major pay package that included $20MM in deferred compensation to be payable over the next 10 years. In this case, the player’s representatives negotiated that the deferred compensation be structured in the form of an annuity to guarantee the future payments. SGC can utilize Monetization Financing to provide the player with cash today - the present value of all or part of the future payment stream. This is done at very competitive rates without any fees. The player now has the benefit of the money to invest as he chooses to. |