Prime-time Players getting much higher than Prime interest Loans
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Originally Posted by from Business Insider.com
NFL Players Are Already Taking Out High-Interest Loans To Survive The Lockout
Dashiell Bennett | BusinessInsider.com
An investigation by Yahoo Sports has found that players from as many as 16 NFL teams have already begun securing high-interest, short term loans, in anticipation of the NFL lockout.
The interest on these loans can be anywhere from 18 to 36 percent, putting them on par with bad credit cards or even payday loan services.
In addition, some of the lenders have required players to get insurance policies to cover the loans, in case they're injured. That can add tens of thousands of dollars to the cost of loans.
All of which these players can scarcely afford. (That's why they need the loans, right?) If players are already running out of money — or anticipating that they will soon — it only underscores the harsh reality of professional sports, where millionaires live paycheck to paycheck and end up broke as soon as the league is done with them.
That explains why there's a hidden industry of private lenders that target the sports industry. Yes, these are adults, but for one of these lenders to claim that they aren't trying to take advantage of financially naive rich guys is pretty disingenuous.
The absolute rock bottom salary made last year by any player on an NFL roster was $325,000; and that was for rookies. Minimum salary with 1 year experience: $400k; 2 years experience: $475k; 3 years experience: $550k.....and it goes up from there.
My question is this.....how in the world do you make between $325k-$550k (at a minimum) in one year, and within 4 months, you have to hit the payday loan down the street?
Re: Prime-time Players getting much higher than Prime interest Loans
Quote:
Originally Posted by
HUbison
My question is this.....how in the world do you make between $325k-$550k (at a minimum) in one year, and within 4 months, you have to hit the payday loan down the street?
Overhead much?
Re: Prime-time Players getting much higher than Prime interest Loans
Not to mention that they knew this was a likely scenario a year ago when the owners opted out of the CBA. It's not some freak car accident or medical procedure that comes out of nowhere; they had a year to prepare.
