NFL players allegedly need loans already

From the article:"Players from at least 16 NFL teams have turned to short-term loans with high interest rates as a way to keep cash flowing amid the month-old lockout, ThePostGame.com reported Tuesday.

The NFL Players Association started payments to players from its lockout "war chest" nearly two weeks ago, but according to the report many players are still in need of the risky loans.

As many as 10 percent of the NFL's nearly 1,800 players have already signed off on such loans, and at least another 20 percent are in the process of doing so, according to a prominent financial adviser who spoke to ThePostGame.com on condition of anonymity."

Not sure how accurate this information is coming from an anonymous source. It would seem extreme to me that so many players (allegedly 10% now and another 20% soon, totaling 30% of the league!!) already are in need of loans.

Also, and maybe you guys can help me out here, even if there was no lock-out what payments would these guys be getting in the off-season anyway?? Aren't the vast majority of their wages paid in game cheques? I know some players have bonuses this time of year but I don't see how almost 30% of the league could be short of cash because of that.

If there is substantial truth to the article it's a terrible sign for the players.

For now, I'm taking this report with a large grain of salt.

about 1 year ago Luke. 14 comments 0 recs |

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you got to also remember a lot of the players were raised in poverty

A lot of them had nothing then all of the sudden here’s piles of cash. To them $700,000 is an endless supply of money, and consequently they don’t know how to manage such large sums of money. Furthermore, they don’t necessarily keep all of it. They send some of it back home or spend it on their friends.

It is easy to be critical of people without walking a mile in their shoes.

Sean Lissemore = The next Bruce Smith

by Lissyyyyy on Apr 12, 2011 7:13 PM CDT reply actions

I’m torn.

On one hand I know some of these guys haven’t had good guidance.

OTOH, I don’t want to be prejudiced in my opinions of people raised in poverty (i.e. they’re incapable of being responsible with money).

I suspect it’s more that great athletes are coddled than growing up in poverty. That and overconfidence. They assume because they’re great at football they’re great at everything (e.g. investing, rapping, acting, etc). Get’s them in trouble.

Did Lenny Dyksta grow up in poverty?

by Fan in Thick and Thin on Apr 12, 2011 7:38 PM CDT up reply actions

Never said that you had to grow up in poverty to be irresponsible with money

however people who grow up in poverty have a much different concept of money than others.

Sean Lissemore = The next Bruce Smith

by Lissyyyyy on Apr 12, 2011 7:52 PM CDT up reply actions

however people who grow up in poverty have a much different concept of money than others.

I don’t agree with you. I know some people who grew up in impoverished conditions and they understand the concept of money just fine. In fact, the people I know like that have more sense about money, they don’t waste it, than the people I’ve known who grew up privileged.

After thinking about I’d chalk it up more to a Athlete Big Ego thing.

by Fan in Thick and Thin on Apr 12, 2011 9:52 PM CDT up reply actions

Did your friend make $700,000 when he was 21?

Sean Lissemore = The next Bruce Smith

by Lissyyyyy on Apr 12, 2011 11:17 PM CDT up reply actions

there is a certain amount of immaturity that goes along with it as well

They haven’t spent their life accumulating this wealth. They went from nothing to filthy rich right out of college. It is a lot all at once at such a young age.

Sean Lissemore = The next Bruce Smith

by Lissyyyyy on Apr 12, 2011 11:19 PM CDT up reply actions

Did your friend make $700,000 when he was 21?

the one I’m thinking of was successful right out of school and he continued to be sensible with his money.

by Fan in Thick and Thin on Apr 13, 2011 9:01 AM CDT up reply actions

successful as in making $700,000 a year?

what is your definition of success?

Sean Lissemore = The next Bruce Smith

by Lissyyyyy on Apr 13, 2011 11:52 AM CDT up reply actions

There are also...

Those 2nd and 3rd stringers that grew up in poverty and suddenly made 500k-900k. So they go out and buy their mom a house, their dad a car, a house and car for themselves, they send their 5 siblings to college…and suddenly they have no cash coming in and they still have a lot of mortgage payments to make. This isn’t necessarily all people that can’t manage their money. Most of us would find we have been overextended if we have no income and are forced to live off our savings (especially if we are paying the bill for our family and friends).

"I am a true believer. Anthony Spencer will have 7 or more sacks in 2011 and Stephen Bowen can ball!" - Kegbearer
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by Kegbearer on Apr 13, 2011 8:08 AM CDT up reply actions

First, Do they only get paid during the season?

I honestly don’t know. Second, isn’t it about right that 30% of the total number of players make league minimum? And last, I know it seems like these guys pocket a lot of dinero but if you spread the checks out over 12 months (if my first question is true) then it gradually gets smaller. Put a couple of car payments, a house note and some medical bills in there and it spells uh-oh.

I started out with nothing and still have most of it left

by Benthere on Apr 12, 2011 9:55 PM CDT reply actions

Hell yeah they need money,

Have you listened to some of them talk, how in hell did they get in college? O’yeah the SEC.

Lock n Load

by DIRE WOLF on Apr 12, 2011 10:41 PM CDT reply actions

hahaha

by thebigham on Apr 13, 2011 6:32 AM CDT up reply actions

This was probably a pro-owner thing.

Isn’t that how these things work? “Look D.Smith, 30% of guys are going for loans already, you need to help them, lets do this deal”

In reality these loans will almost certainly wreck their financial future. Sad really

by thebigham on Apr 13, 2011 6:34 AM CDT reply actions

If ture, and it is a big if

I’m not shocked about the % of players getting loans, but am shocked that it is happening so soon. Unless the get a big roster bonus, I think most of the money is pd out during the season. And if the players needing the money spent it on a car or house, couldnt they try to get a loan against the asset ? (assuming they actually pd for it all, instead of taking out a loan in the first place) I would think it would be at a lot less than the rates that are getting thrown around.

An article a few years back stated that over 60% of NFL players are in financial trouble or bankrupt two years after they stop playing. I think that there is alot of league min type players that want to keep up with the “TO’s” of the league and spent everything that they make. After all, they will be able to save later in their careers, right ? (and heck, it is not an indictment of NFL players, the rest of the working world does/did it too….home loans and car payments that they can not afford, he who has the most toys wins)

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Well.....my days of not taking you seriously have certainly come to a middle
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by BigBad Joe on Apr 13, 2011 12:45 PM CDT reply actions