Unlike traditional debt, selling a percentage of future earnings can lead to predatory lending lawsuits, as seen with Fernando Tatis. He received $2 million for 10% of future earnings as a teenager, which became a $33 million liability after his mega-contract. This model's high effective cost creates significant legal and reputational risk for funders.

Instead of traditional corporate loans, Domino's finances itself by pledging its royalty streams and IP as collateral for asset-backed notes. This "whole business securitization" model allows it to secure lower interest rates, providing a cost of capital advantage to fund its share buybacks.

The NIL arms race has created a new financing need for universities themselves. They are now turning to private credit funds for multi-million dollar loans to cover recruiting expenses and six-figure commitment bonuses. These loans are secured by the athletic department's predictable TV revenue, creating a stable, asset-backed lending opportunity.

Superstar athletes nearing the end of their careers, like Steph Curry, can secure massive paydays by partnering with brands in large international markets like China. This strategy allows them to be the undisputed star, face less competition, and gain more creative control than they would with domestic giants.

The record $9.6B sale of the Seattle Seahawks to a VC firm highlights a sophisticated tax loophole. Owners can write off 100% of a team's intangible value, like player contracts, to offset massive taxable gains from other investments, such as a future OpenAI IPO.

A major wealth preservation strategy for the ultra-rich is borrowing against their appreciated public stock. This provides them with massive, tax-free cash liquidity for living expenses or new ventures, without ever triggering a taxable event like selling the stock.

Despite high earning potential, young athletes are often rejected by conventional private banks. Bank regulations require underwriting based on historical balance sheets, which a 21-year-old lacks. This creates a market gap for specialized lenders who can underwrite based on guaranteed future contract value, not past financial history.

For a niche equipment brand, securing a top-tier athlete can be transformative. Rather than a small cash deal, offering a significant equity stake (e.g., 25%) turns the athlete into a co-owner, incentivizing them to actively build the brand among peers.

The NBA's Player Post-Career Income Plan, designed to prevent bankruptcy, holds a portion of players' salaries but doesn't generate any interest or returns for them. Thompson critiques this, suggesting the massive capital pool could be invested like an endowment to generate wealth for players.