The Falcon Jedi Knight Posted May 19, 2011 Share Posted May 19, 2011 Players taking out ridiculously huge loans Posted on: May 18, 2011 11:31 amScore: 120Log-in to rate: Log-in to rate:Posted by Josh KatzowitzMore (scary) news about how the lockout is affecting those players who didn’t think to save their money when they had the chance.This news comes from the Twitter account of Rich “Big Daddy’ Salgado of Coastal Advisors, an insurance consultant company that counts NFL players (and other pro athletes) as part of its clientele.NFL LaborOn Tuesday, Salgado tweeted that he knew of an NFL player who just took out a $500,000 loan with an astronomical interest rate of 23 percent.We’ve posted stories like this before, but a loan of a half million dollars with such a huge interest rate might tell you a tale of where some players’ financials currently are situated.**In the toilet.The biggest problem with this: many players wouldn’t be getting paid much at this point anyway. It’s still the offseason, and though some players receive workout and roster bonuses, it’s not like players receive the bulk of their money at this point of the year.Which means, once September rolls around and players still aren’t cashing checks (during a time in which they normally are), there might be some real trouble out there.For more NFL news, rumors and analysis, follow @cbssportsnfl on Twitter and subscribe to our RSS Feed. Quote Link to comment Share on other sites More sharing options...
BackForThe2ndTime Posted May 19, 2011 Share Posted May 19, 2011 (edited) Sad that they aren't up on their financials but this is really not that big of a deal in the scope of things. Not that big of a risk because it's likely they will be getting paid during the Fall. It's not like these need to be paid in full any time soon. Edited May 19, 2011 by BackForThe2ndTime Quote Link to comment Share on other sites More sharing options...
shc Posted May 19, 2011 Share Posted May 19, 2011 It's too bad the players didn't negotiate some sort of deal with networks to get paid in the vent of a lockout. Quote Link to comment Share on other sites More sharing options...
The Falcon Jedi Knight Posted May 19, 2011 Author Share Posted May 19, 2011 "Oh crap how am I going to pay the mortgage on my $1 million dollar house this month? Oh crap how am I going to keep this Lamborghini? Oh crap how am I going to be keep eating chop-house prime rib steaks every night? Oh Crap... I NEED A LOAN!" Quote Link to comment Share on other sites More sharing options...
dirtybird1989 Posted May 19, 2011 Share Posted May 19, 2011 "Oh crap how am I going to pay the mortgage on my $1 million dollar house this month? Oh crap how am I going to keep this Lamborghini? Oh crap how am I going to be keep eating chop-house prime rib steaks every night? Oh Crap... I NEED A LOAN!"Yea i see it now, If the NFL locks out permantly all these ex nfl players working at your local wal-mart lol. The owners will still be rich and buy into NBA and MLB, But they won't make it to far either. They can start a fast food chain and hire the best of the best ex-nfl players to flip burgers. Get Brees to cook the burgers, Then throw them down to fitz so he can put the bun on and Ray lewis can wrap them up and if it takes to long Ocho Cinco well be screaming {C"MON MAN}. Then they can fight over their 75 cent raise and health benefits. Quote Link to comment Share on other sites More sharing options...
Robb4242 Posted May 19, 2011 Share Posted May 19, 2011 It's too bad the players didn't negotiate some sort of deal with networks to get paid in the vent of a lockout.That's why the players play & the owners own. Quote Link to comment Share on other sites More sharing options...
1989Fan Posted May 19, 2011 Share Posted May 19, 2011 funny how these guys make up to 10M per season, and cant go 5 months without a check.and still they have fans struggling to pay bills showing pity for them. Quote Link to comment Share on other sites More sharing options...
usmcdirtybird Posted May 19, 2011 Share Posted May 19, 2011 funny how these guys make up to 10M per season, and cant go 5 months without a check.and still they have fans struggling to pay bills showing pity for them.+1 Quote Link to comment Share on other sites More sharing options...
Shotty Ice Posted May 19, 2011 Share Posted May 19, 2011 And this is exactly why the owners will win. Players are stupid. Quote Link to comment Share on other sites More sharing options...
Theyhateme : ) Posted May 19, 2011 Share Posted May 19, 2011 funny how these guys make up to 10M per season, and cant go 5 months without a check.and still they have fans struggling to pay bills showing pity for them.I'd have a hard time trying to believe that a player who made 10 mil last season and now needs to borrow 500k. :mellow:Rich “Big Daddy’ Salgado :mellow: Sounds like he's the guy loaning the $$$.... Quote Link to comment Share on other sites More sharing options...
Sun Tzu 7 Posted May 19, 2011 Share Posted May 19, 2011 (edited) I'd have a hard time trying to believe that a player who made 10 mil last season and now needs to borrow 500k. :mellow:I did too but look at Vick.When he was here how much was he making a year? 5-10 million? Even though he was making that a year he was still taking multi-million dollar loans. He still owes people money and he was the highest paid player in the NFL during that time.It doesn't matter how much money you make... if you make bad decisions with it then it's not going to last.And let's not forget that only a small percentage of these guys are making several million a year. Most of the guys are bottom of the roster players making close to the league minimum. Edited May 19, 2011 by Sun Tzu 7 Quote Link to comment Share on other sites More sharing options...
Mr. Hoopah! Posted May 19, 2011 Share Posted May 19, 2011 And this is exactly why the owners will win. Players are stupid.Yup. For every Matt Ryan, there are 47 Antonio Cromarties. Quote Link to comment Share on other sites More sharing options...
Theyhateme : ) Posted May 19, 2011 Share Posted May 19, 2011 I did too but look at Vick.When he was here how much was he making a year? 5-10 million? Even though he was making that a year he was still taking multi-million dollar loans. He still owes people money and he was the highest paid player in the NFL during that time.It doesn't matter how much money you make... if you make bad decisions with it then it's not going to last.And let's not forget that only a small percentage of these guys are making several million a year. Most of the guys are bottom of the roster players making close to the league minimum.His assets came to 16 mil though. There was nothing to suggest that he had to go and borrow 500K to make ends meet. Which I what I thought this article was suggesting. Borrowing 500K for a business venture and borrowing 500K because you r broke with no assets are 2 very different coins. Quote Link to comment Share on other sites More sharing options...
Sun Tzu 7 Posted May 19, 2011 Share Posted May 19, 2011 His assets came to 16 mil though. There was nothing to suggest that he had to go and borrow 500K to make ends meet. Which I what I thought this article was suggesting. Borrowing 500K for a business venture and borrowing 500K because you r broke with no assets are 2 very different coins.I'm saying is these guys are having to borrow 500k because they made bad financial decisions with their money.Amazingly enough these guys probably live a lifestyle where they're more or less living from paycheck to paycheck. Some of them are probably living a lifestyle that they can barely afford when they're getting paid.Between taxes, cars, and houses I can see how these guys may easily blow through several hundred thousand a year. Quote Link to comment Share on other sites More sharing options...
pren226 Posted May 19, 2011 Share Posted May 19, 2011 His assets came to 16 mil though. There was nothing to suggest that he had to go and borrow 500K to make ends meet. Which I what I thought this article was suggesting. Borrowing 500K for a business venture and borrowing 500K because you r broke with no assets are 2 very different coins.he won't be a good business man for long taking out 23% loans. Quote Link to comment Share on other sites More sharing options...
Theyhateme : ) Posted May 19, 2011 Share Posted May 19, 2011 I'm saying is these guys are having to borrow 500k because they made bad financial decisions with their money.Amazingly enough these guys probably live a lifestyle where they're more or less living from paycheck to paycheck. Some of them are probably living a lifestyle that they can barely afford when they're getting paid.Between taxes, cars, and houses I can see how these guys may easily blow through several hundred thousand a year.I get it. I don't want to get into what he did with his $$, but to actually have 16 million in assests was much better than I had ever imagined. This time next year, he could be 60 to 70% debt free or more if he chose to go that route. Not many guys get the opportunity to comeback from something like that. I'm not sure Vick fits into the category of the type of individual that this article is talking about. It's not clear to me which class of individuals this "Big Daddy" guy is speaking of in this article. Quote Link to comment Share on other sites More sharing options...
Lucky_Tom Posted May 19, 2011 Share Posted May 19, 2011 funny how these guys make up to 10M per season, and cant go 5 months without a check.and still they have fans struggling to pay bills showing pity for them.Funny how an anecdotal tweet from some guy calling himself "Big Daddy" about AN NFL player taking out such a loan can become a blanket indictment of NFL players in general. Seeing also as very few players in the NFL make 10 million per year, the likelihood that this one guy that "Big Daddy" apparently knows of is one of the 10 millionaires is very small.Don't get caught up in the propaganda. Quote Link to comment Share on other sites More sharing options...
Theyhateme : ) Posted May 19, 2011 Share Posted May 19, 2011 he won't be a good business man for long taking out 23% loans.So you think that this article is talking about Vick? Because you quoted my comment about him. EDIT: Nevermind...you're saying that any businessman with 23% interest rate is a bad investor....I agree...LOLOLOL!! Quote Link to comment Share on other sites More sharing options...
Theyhateme : ) Posted May 19, 2011 Share Posted May 19, 2011 Funny how an anecdotal tweet from some guy calling himself "Big Daddy" about AN NFL player taking out such a loan can become a blanket indictment of NFL players in general. Seeing also as very few players in the NFL make 10 million per year, the likelihood that this one guy that "Big Daddy" apparently knows of is one of the 10 millionaires is very small.Don't get caught up in the propaganda.+1 for you...LOLOL.... "Big Daddy?" :mellow: Quote Link to comment Share on other sites More sharing options...
Karst41 Posted May 19, 2011 Share Posted May 19, 2011 Would like to be a fly on the wall in the Biremanns mansion.Upon second thought Quote Link to comment Share on other sites More sharing options...
Sun Tzu 7 Posted May 19, 2011 Share Posted May 19, 2011 he won't be a good business man for long taking out 23% loans.I wonder what the term of the loan is.A $500,000 loan with an interest rate of 23% translates into monthy payments of $9,593.65 for 30 years. OMG the interest on this would be close to 3 million.Actually it probably makes more sense to pay that back in 5 years. The monthly payment would be $14,095.24 but you'd only end up paying $345,714.13 in interest. Yeah, taking a loan like that at 23% isn't smart. Not at all. Quote Link to comment Share on other sites More sharing options...
NoMoreVick Posted May 19, 2011 Share Posted May 19, 2011 It goes even deeper than having to get loans.The average player is how old when coming into the league? 21-23. And they're getting just an absurd amount of money thrown at them left and right from both the league and possible endorsement deals. A lot of these players, for the first time in their lives, actually have money. They don't know what to do. So, what do they do? They go out and they spend it left and right on things that they've always wanted. Not only for themselves, but for friends and family that have their hands out. It seems like a lot of money at the time, but it goes fast, especially when you have huge payments to make. So, that money is nice at first, but when it stops and you have these payments, you start panicking. Athletes just need to learn how to budget and spend their money. It's definitely a problem, whether they're getting paid or not. Quote Link to comment Share on other sites More sharing options...
falconidae Posted May 19, 2011 Share Posted May 19, 2011 I wonder what the term of the loan is.A $500,000 loan with an interest rate of 23% translates into monthy payments of $9,593.65 for 30 years. OMG the interest on this would be close to 3 million.Actually it probably makes more sense to pay that back in 5 years. The monthly payment would be $14,095.24 but you'd only end up paying $345,714.13 in interest. Yeah, taking a loan like that at 23% isn't smart. Not at all.What the player is planning to do is repay the loan when he gets paid/re-signed- it's more than he should pay, think it's usurious, but he's planning to pay ineterst for 3-4 months then paying it off. Quote Link to comment Share on other sites More sharing options...
Farmer2 Posted May 19, 2011 Share Posted May 19, 2011 Sad that they aren't up on their financials but this is really not that big of a deal in the scope of things. Not that big of a risk because it's likely they will be getting paid during the Fall. It's not like these need to be paid in full any time soon.That's the sad part in all of this. This loan won't get paid off anytime soon, even if they are getting paid this fall. If this player pays this loan off over the course of 10 years they'll pay $781,286.79 just in interest. It's sickening how stupid some professional athletes are. Quote Link to comment Share on other sites More sharing options...
Theyhateme : ) Posted May 19, 2011 Share Posted May 19, 2011 That's the sad part in all of this. This loan won't get paid off anytime soon, even if they are getting paid this fall. If this player pays this loan off over the course of 10 years they'll pay $781,286.79 just in interest. It's sickening how stupid some professional athletes are.Well we don't know how creditable "Big Daddy" is before we pass judgement on the mysterious player that got the "500K" loan at 23% interest. I'm willing to bet that a "white collar" business professional wouldn't get charged a 23% interest rate... Quote Link to comment Share on other sites More sharing options...
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