For every $100 loaned to consumers via same day loans, a 15 to 25 percent fee is added for the convenience. This amounts to $50 or $60 in most cases, which is hardly earth-shattering. According to Yahoo! Sports, now there’s a high-dollar variant of such instant pay day loans for disenfranchised athletes: the NFL lockout loan. In this case, lending agents are coming to the players with offers, knowing the salaries aren’t coming and cash needs continue to exist. Article resource – NFL lockout loans: More money, more problems by MoneyBlogNewz.
The problem with 36 percent Annual Percentage Rate on lockout loans
A 36 percent Annual Percentage Rate on a loan as little as $300 to $400 will not mean much while it can cost quite a bit for NFL lockout loans of over $60,000. Yahoo! Sports states that there have been players from 16 NFL teams that got these loans.
Some players have been better off with the NFL Players Association lockout while others have had a very difficult time keeping up with finances. Hardly any players listened when the National Football League Players Association advised players to save three game checks. This was given as advice to players in preparation of the 2011 lockout. The NFLPA told players to do other things to make money such as refinance homes, fly coach and do things for instance autograph signings, MSNBC states.
Paying NFL players a lot just to have them waste it
From a young age, star athletes are surrounded by enablers, according to psychologists. By the time players reach the professional ranks, it is not uncommon for them to lack real world financial knowledge, as they’ve never had to take responsibility for such things. Millions being given to someone who was poor might also be an issue. These individuals might just spend it all up. This is perhaps why as much as 80 percent of retired NFL players have declared bankruptcy, according to a Sports Illustrated estimate. MSNBC indicates that as many as 380 of the NFL’s 1,700 players live from paycheck to paycheck, even though the average NFL annual salary in 2010 was $1.87 million. About $320,000 was paid on average to a rookie. Nevertheless, after taxes and agent payments, players could end up poor.
Rogers supports lockout loans for players
Sherard Rogers, a financial adviser to numerous NFL athletes, told Yahoo! Sports that lockout loans are a legitimate product that meets player demand. It might be really hard for any players that are used to spending.
“Every NFL team was valued at over $1 billion, so they can weather the storm of a lockout. But could players if there weren’t resources to cover this short-term labor dispute?” asked Rogers. “The key is to figure out how to solve the short-term liquidity issue and put the pieces in place to ensure they don’t have this liquidity issue again.”
Information from
MSNBC
msnbc.msn.com/id/41855264/ns/business-personal_finance/41855226
Philly Sports Column
philly.sportscolumn.com/showthread.php?t=11751
The Real Athlete Blog
accessathletes.com/blog/blogDisplay.cfm?/Education-is-Key-for-Pro-Athletes-596
The Post Game
thepostgame.com/features/201104/tpg-exclusive-cash-strapped-nfl-players-seeking-high-risk-lockout-loans
Both sides are feeling the ‘deal heat’
youtu.be/CQD7MvhD3sI
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