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Owners, predatory lenders have to be salivating

Posted on: April 13, 2011 9:32 am
 
Posted by Josh Katzowitz

If you want to know why the owners might try to wait out this lockout until players start missing games and more paychecks – that is, if the courts allow them to do it (which, at this point, looks kind of doubtful) – check out this story from Yahoo! Sports’ Postgame.

In the story, it’s reported that players from at least 16 different teams have taken out short-term, high-interest loans that range from 18 to 24 percent (and if the person defaults on the loan, it rises to an astronomical 36 percent) because some players are on the verge of having no money.

NFL Labor
Last month, the NFLPA announced it would begin on April 15 paying players from the trade association’s lockout fund with a maximum payment of $60,000 occurring during six installments (or until the lockout ended), and though that’s not a huge sum of money for the vast majority of players, there’s no question that many of them NEED that money.

But the reporting in this Postgame story is scary, because when you start talking about predatory lenders, you’re talking about bad, bad news.

"There are a lot of people out there pitching these things," an anonymous attorney told the website. "It’s almost predatory lending. It's people going to guys who they know are already in debt, or don’t have the ability to pay their Bills during the year and [lending them money] at such obscene terms, that you say, 'Hey, no one would ever sign something like this.' But a lot of players are."

Before the 2010 season began, we talked about the NFLPA’s advice to players to start saving money, but because many of these players are young and don’t have a solid base of financial wherewithal (even if they’re paying a financial advisor to give them exactly that), some ignored the union’s advice and spent money as if plenty more would be there in 2011.

Here’s a little more from the article (but you really need to read the entire piece):

"I know at least 16 different teams that have had players go out and have to set these [high risk loans] up," said the adviser. "Guys on the Dolphins, Saints, 49ers, Panthers, Chargers, Bears, Vikings."

The adviser said he believes as many as 10 percent of the nearly 1,800 players in the league have secured some form of lending at this point, and estimates at least another 20 percent are in the process of securing lending now. Based on conversations he has had with other leading figures in the industry, he believes close to half of the players in the NFL will secure some form of lending if the lockout continues past Labor Day.

Fifty percent of players, frankly, is hard to believe. But even if it’s half of that, the owners have to be smiling at the thought of so much potential leverage. And hoping that Judge Susan Nelson doesn’t grant a temporary injunction in the Brady v NFL case that would lift the lockout.

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Category: NFL
Tags: Lockout, NFLPA
 
Comments
hgtrerte
Since: Dec 2, 2011
Posted on: December 7, 2011 7:00 am
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Since: Dec 2, 2011
Posted on: December 5, 2011 7:32 am
 

Owners, predatory lenders have to be salivating

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Since: Aug 20, 2006
Posted on: April 21, 2011 11:05 am
 

Owners, predatory lenders have to be salivating

The problem with pro athletes is that most have never had to exist in the real world with the rest of us, and have no reliable concept of money and financial responsibility.  Well, any kind of responsibility that is.  They were usually tagged as "special" early on in life: as the bigger, faster more talented players in pop warner and youth leagues they started hearing how wonderful they were and adults started manipulating the system to get them in their districts or on their team. As they entered high school they were often held to far different academic and behavioral standards than their (non-athlete) classmates.  This culminates in the collegiate arena, where these blue chip players are actively woo'd, given preferential treatment, money and priviliges that far exceeded the "norm".  By this time these donkeys have been living in this "bubble" for over a decade and have never had to understand what reality actually feels like.  What makes matters worse is that these are the years that they absolutely NEEDED those hard lessons, to prepare them for life's hard knocks before they have to enter that world as adults. 
Unfortunately what you get in the NFL is often a 6' 4", 240lbs monster with the emotional temperment of a 6 year old, the education of a grade schooler, and an insanely overstated sense of entitlement.  "what do you mean I have to PAY for this?!? i'm a football player, you should pay me just for gracing you with my presence!!" To be surprised when these neanderthals mismanage their finances and personal lives is to be totally blind to the conditioning and sheltering process that most of these primadonnas have experienced.



Since: Sep 28, 2006
Posted on: April 14, 2011 3:51 pm
 

Owners, predatory lenders have to be salivating

It is interesting that the players have not missed a single game paycheck yet.  Unless all the guys getting these loans were due a roster bonus or something else then we can conclude they would have gotten one of these loans even if there was no lockout.  That means they really were not budgeting their money even for normal times.

The problem now is if the lockout last long enough they will not be able to pay these loans off before they incur some serious penalties.

What if some players really get involved with the wrong people?  Will some guy be forced to throw a game so he doesn't get his legs broken?


These players need to learn to budget their money for life not just for a year. A long lockout might be just what the doctor ordered.

I have said all a long the owners are going to win in the end and rightfully so but we the fans are not going to win because they are all just too greedy.




Since: Apr 3, 2008
Posted on: April 14, 2011 3:32 pm
 

Owners, predatory lenders have to be salivating

Just a wild guess but it's probabl more like 100 times!!




Since: Aug 20, 2006
Posted on: April 14, 2011 2:08 pm
 

Owners, predatory lenders have to be salivating

Go figure, these intellectually stunted thugs can't manage their finances?!?  Is this a shocker to anyone?  I must admit I didn't think these semi-tards would run out of money in APRIL, but this was always inevitable.  This is why the owners will (and should) win.  These athletes have very few (if any) viable alternative revenue sources.  What business is going to pay more than $10/hr for a guy whose key resume features are "picking up really heavy things" and "running short distances very fast"?  These guys are poorly prepared for life in what we all call "the real world" and without the NFL they are just one in a sea of uneducated, socially unadjusted, controlled substance abusing future felons.  The best part for the owners is that there is a NEVERENDING supply of these donkeys, as every year thousands emerge from the NCAA ranks, so their is ZERO genuine scarcity for this product.  Offer them $100k to $300k to play, and let's see how many of them line up for a spot once they realize their alternatives include lugging pallets in a warehouse or stocking shelves at the local Piggly Wiggly. Oh, of course there are still the lucrative dog fighting and illegal drugs professions, and some of them do have a head start in those arenas.



Since: Dec 15, 2010
Posted on: April 14, 2011 1:14 pm
 

Owners, predatory lenders have to be salivating

"The players need a lot more money from the billionaire owners."

What??? Are you out of your mind 32Zone? You actually want the owners to give them more money so that they can go ahead and waste that too! This is just more evidence as to why the owners should remain firm and not give in to these clowns. Give it a few weeks and these players will be willing to accept all of the owners demands in return for their next fix, er sorry I meant paycheck. 



Since: Jan 5, 2009
Posted on: April 14, 2011 1:04 pm
 

Owners, predatory lenders have to be salivating

Wow...

The players who are struggling with their finances have to take a good look at what they are doing with their money.

When you earn 6 figures or more on a yearly basis, you would assume that a person can manage their finances accordingly. But it seems like a lot of these players are getting caught up with making poor financal choices.



Since: Feb 8, 2008
Posted on: April 14, 2011 12:26 pm
 

Owners, predatory lenders have to be salivating

Seriously? Who cares about these "poor" football players that are on the verge of no money? What's the minimum salary in the NFL? Probably about 8 times what the average American makes per year and we are marching on. I have no sympathy for these guys whatsoever.



Since: Dec 3, 2010
Posted on: April 14, 2011 10:10 am
 

Owners, predatory lenders have to be salivating

Hey 32Zone, do you own a business? I want to come work for you...and dictate how much of the money your company makes should go directly to me!


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