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The sale of the proceeds from a sports contract can be a source of cash to the athlete or athletic organization, now rather than in the future. By selling the entire sports contract or a portion of the proceeds of a sports contract, the seller has access to the funds necessary to make investments or use for other purposes. The immediately availability of a lump sum payment would be of greater use to the owner of the contract than over the years as specified in the contract.
Be mindful that these transactions are not loans against the sports contracts, but rather the sale of the payments to be made to the athlete or athletic organization under the contract. As such, the lump sum of cash received does not need to be repaid—because there was no loan.
This purchase arrangement applies not only to individual professional athletes and professional sport organizations, but also to collegiate athletic programs that are contractually entitled to receipts from broadcast rights, and endorsement contracts.
For more information about sports contracts, call Capital Funding of America at 1-800-322-5985 or use our CONTACT US page.
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