When an athlete or entertainer's personal brand has substantial economic value, it’s no surprise that name, image, and likeness (NIL) rights are key financial assets in pre-nuptial - and post nuptial - discussions. At my boutique firm, Boschan Corp., we conduct discreet yet rigorous NIL valuations that assist family law attorneys in representing celebrities with notable public profiles - or their future spouses - ensuring accurate and equitable outcomes in their clients' pre-nuptial agreements.
Why Is an NIL Valuation Important for a Pre-Nup?
The role of NIL rights in building wealth is only growing, and accurately appraising these rights can provide clarity and confidence for couples entering marriage. By including NIL valuations in a pre-nuptial agreement, both parties can agree on the intrinsic cash flow potential of these rights from the start, creating transparency and helping mitigate potential disputes down the road. Although the parties' respective CPAs may be able to provide a preliminary balance sheet to support your pre-nup negotiations, it is unlikely that such CPA will have the ability to include a full valuation of name, image, and likeness rights on the balance sheet. That is where we come in.How We Value NIL Rights
Our approach at Boschan Corp. centers on assessing the projected cash flows that NIL rights can generate. By focusing on intrinsic value, we quantify the actual earning potential tied to a person’s likeness and reputation. This provides clients and their attorneys with a grounded estimate based on real financial metrics, offering a sound basis for negotiating financial agreements.Practical Considerations for Family Law Attorneys
As NIL rights become more prominent in family law matters, integrating an accurate NIL valuation into pre-nuptial agreements can be a game-changer. For family law attorneys, NIL valuation adds an essential financial dimension to client representation, offering:- Transparency: Clear, data-driven insights into NIL value set a foundation for mutual understanding.
- Protection: For clients whose income largely depends on their public image, knowing the intrinsic cash flow potential of their NIL rights is invaluable.
- Future-proofing: A well-constructed valuation ensures that both parties have a realistic understanding of how NIL rights fit into their financial picture.
