NFL players taking out high interest loans already (1 Viewer)

[identikit]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

Report: Locked-out players already seeking loans

08:36 AM ET 04.17 |

Barely into the second month of the lockout, there's already been some disturbing news on the financial front for players. Players from at least 16 teams have at least shown interest in taking out short-term loans with high interest rates and fees, according to a report from ThePostGame.com. The report cited a source that indicated the interest rates range from 18 to 24 percent, and could rise to as high as 36 percent on default. "I know at least 16 different teams that have had players go out and have to set these [high-risk loans] up," said a financial adviser in the report. "Guys on the Dolphins, Saints, 49ers, Panthers, Chargers, Bears, Vikings."

Read more: http://www.fannation...r#ixzz1JnFvTEHF

 

[cobalt_27]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

Report: Locked-out players already seeking loans

08:36 AM ET 04.17 |

Barely into the second month of the lockout, there's already been some disturbing news on the financial front for players. Players from at least 16 teams have at least shown interest in taking out short-term loans with high interest rates and fees, according to a report from ThePostGame.com. The report cited a source that indicated the interest rates range from 18 to 24 percent, and could rise to as high as 36 percent on default. "I know at least 16 different teams that have had players go out and have to set these [high-risk loans] up," said a financial adviser in the report. "Guys on the Dolphins, Saints, 49ers, Panthers, Chargers, Bears, Vikings."

Read more: http://www.fannation...r#ixzz1JnFvTEHF

 

[Orange Crush]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

That's never really been doubted. It's why the players are taking legal action to end the lockout, because they know they'll lose if the owners get to continue it.

 

[Chadstroma]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

That's never really been doubted. It's why the players are taking legal action to end the lockout, because they know they'll lose if the owners get to continue it.

Exactly. The longer this goes on, the weaker the players get. I think that is something that the judge really was hinting out when she ordered them back to mediation. If they went ahead with the case and the judge did mostly anything other than lift the lockout, the players would be sunk. It is in the players best interest to get this done now at the mediation than let this go through with a court decision.

 

[cobalt_27]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

That's never really been doubted. It's why the players are taking legal action to end the lockout, because they know they'll lose if the owners get to continue it.

Exactly. The longer this goes on, the weaker the players get. I think that is something that the judge really was hinting out when she ordered them back to mediation. If they went ahead with the case and the judge did mostly anything other than lift the lockout, the players would be sunk. It is in the players best interest to get this done now at the mediation than let this go through with a court decision.

Players haven't thought this out more than 1-2 steps ahead. For now, they believe they got the owners exactly what they wanted them...in court. They won't talk/negotiate with any seriousness, as has been the case all along, because they think they have the owners by the balls in court. But, they don't even see on the horizon how the long, drawn-out appeals process is going to be the death knell for them. The owners will win that round, and that will be the end of it, and they'll be in an even worse bargaining position than when they first decertified. They're not very bright, and the owners are going to skewer them in the end.

 

[Chadstroma]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

That's never really been doubted. It's why the players are taking legal action to end the lockout, because they know they'll lose if the owners get to continue it.

Exactly. The longer this goes on, the weaker the players get. I think that is something that the judge really was hinting out when she ordered them back to mediation. If they went ahead with the case and the judge did mostly anything other than lift the lockout, the players would be sunk. It is in the players best interest to get this done now at the mediation than let this go through with a court decision.

Players haven't thought this out more than 1-2 steps ahead. For now, they believe they got the owners exactly what they wanted them...in court. They won't talk/negotiate with any seriousness, as has been the case all along, because they think they have the owners by the balls in court. But, they don't even see on the horizon how the long, drawn-out appeals process is going to be the death knell for them. The owners will win that round, and that will be the end of it, and they'll be in an even worse bargaining position than when they first decertified. They're not very bright, and the owners are going to skewer them in the end.

I just do not see how they are going to 'win'. It may just be because I am sick of hearing 'to all those who dig our game' but I just do not see how DeMaurice is a good leader for the players. The BEST chance they have for the BEST deal is NOW. It goes on further, they risk getting losing badly in court (and again, pretty much anything but a lift of the lockout is a loss to them) and each day that goes by means more and more of the bulk of the players start having serious financial issues. Sure, the Peyton's and Drew's of the league are fine but most of these guys are ALREADY hurting for cash. That is bad for the NFLPA and their negotiation power.

 

[Orange Crush]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

That's never really been doubted. It's why the players are taking legal action to end the lockout, because they know they'll lose if the owners get to continue it.

Exactly. The longer this goes on, the weaker the players get. I think that is something that the judge really was hinting out when she ordered them back to mediation. If they went ahead with the case and the judge did mostly anything other than lift the lockout, the players would be sunk. It is in the players best interest to get this done now at the mediation than let this go through with a court decision.

Players haven't thought this out more than 1-2 steps ahead. For now, they believe they got the owners exactly what they wanted them...in court. They won't talk/negotiate with any seriousness, as has been the case all along, because they think they have the owners by the balls in court. But, they don't even see on the horizon how the long, drawn-out appeals process is going to be the death knell for them. The owners will win that round, and that will be the end of it, and they'll be in an even worse bargaining position than when they first decertified. They're not very bright, and the owners are going to skewer them in the end.

I just do not see how they are going to 'win'. It may just be because I am sick of hearing 'to all those who dig our game' but I just do not see how DeMaurice is a good leader for the players. The BEST chance they have for the BEST deal is NOW. It goes on further, they risk getting losing badly in court (and again, pretty much anything but a lift of the lockout is a loss to them) and each day that goes by means more and more of the bulk of the players start having serious financial issues. Sure, the Peyton's and Drew's of the league are fine but most of these guys are ALREADY hurting for cash. That is bad for the NFLPA and their negotiation power.

Why are the two of you stating that the NFLPA is to blame for not getting a deal done now? If the NFL's analysis coincides with yours, then its in their interests to draw things out as long as possible, yes? To not agree to a new deal now. Even if they lose this round in court, they'll appeal and draw that process out, making the players feel real financial pain, yes?

 

[wakelawyer]

This story is fascinating. I wonder if the players are factoring the cost of these high interest loans in the end result. While they may get a "better deal" in the end, many of the players will suffer significant short-term consequences. The players need to factor in the added interest costs they are incurring in these loans, the cost of health insurance and training, the loss of value in homes that may need to be sold to endure a prolonged lockout, etc. in determining whether they are being benefited by continued labor strife. Add to this the non-economic costs of the breakup of marriages, lack of counseling, etc. and the players cannot win when all is said and done. I do not believe that the average player will see more money when a deal is signed, even if the players get a better deal than that which has currently been offered. While the owners will similarly suffer, I believe that they are in a better position to assess the consequences of not signing a deal better than the players can.

 

[Chadstroma]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

That's never really been doubted. It's why the players are taking legal action to end the lockout, because they know they'll lose if the owners get to continue it.

Exactly. The longer this goes on, the weaker the players get. I think that is something that the judge really was hinting out when she ordered them back to mediation. If they went ahead with the case and the judge did mostly anything other than lift the lockout, the players would be sunk. It is in the players best interest to get this done now at the mediation than let this go through with a court decision.

Players haven't thought this out more than 1-2 steps ahead. For now, they believe they got the owners exactly what they wanted them...in court. They won't talk/negotiate with any seriousness, as has been the case all along, because they think they have the owners by the balls in court. But, they don't even see on the horizon how the long, drawn-out appeals process is going to be the death knell for them. The owners will win that round, and that will be the end of it, and they'll be in an even worse bargaining position than when they first decertified. They're not very bright, and the owners are going to skewer them in the end.

I just do not see how they are going to 'win'. It may just be because I am sick of hearing 'to all those who dig our game' but I just do not see how DeMaurice is a good leader for the players. The BEST chance they have for the BEST deal is NOW. It goes on further, they risk getting losing badly in court (and again, pretty much anything but a lift of the lockout is a loss to them) and each day that goes by means more and more of the bulk of the players start having serious financial issues. Sure, the Peyton's and Drew's of the league are fine but most of these guys are ALREADY hurting for cash. That is bad for the NFLPA and their negotiation power.

Why are the two of you stating that the NFLPA is to blame for not getting a deal done now? If the NFL's analysis coincides with yours, then its in their interests to draw things out as long as possible, yes? To not agree to a new deal now. Even if they lose this round in court, they'll appeal and draw that process out, making the players feel real financial pain, yes?

I am not saying that the reason for not getting a deal done now is the NFLPA, I am saying it is in their best interest. I do not think the NFL wants to drag it out because the NFL has to protect the business. If it is dragged out, they will lose fans and that do not want that. But, the NFL has less to lose than the NFLPA the longer it goes on because they can outlast and recover better than the NFLPA can. The fact does not mean that they want to go the long run though.

 

[identikit]

This story is fascinating. I wonder if the players are factoring the cost of these high interest loans in the end result. While they may get a "better deal" in the end, many of the players will suffer significant short-term consequences. The players need to factor in the added interest costs they are incurring in these loans, the cost of health insurance and training, the loss of value in homes that may need to be sold to endure a prolonged lockout, etc. in determining whether they are being benefited by continued labor strife. Add to this the non-economic costs of the breakup of marriages, lack of counseling, etc. and the players cannot win when all is said and done. I do not believe that the average player will see more money when a deal is signed, even if the players get a better deal than that which has currently been offered. While the owners will similarly suffer, I believe that they are in a better position to assess the consequences of not signing a deal better than the players can.

 

[belljr]

Maybe I'm misunderstanding but why do they need loans now? I thought they didn't get paid during this time under a normal year?

 

[roadkill1292]

This story is fascinating. I wonder if the players are factoring the cost of these high interest loans in the end result. While they may get a "better deal" in the end, many of the players will suffer significant short-term consequences. The players need to factor in the added interest costs they are incurring in these loans, the cost of health insurance and training, the loss of value in homes that may need to be sold to endure a prolonged lockout, etc. in determining whether they are being benefited by continued labor strife. Add to this the non-economic costs of the breakup of marriages, lack of counseling, etc. and the players cannot win when all is said and done. I do not believe that the average player will see more money when a deal is signed, even if the players get a better deal than that which has currently been offered. While the owners will similarly suffer, I believe that they are in a better position to assess the consequences of not signing a deal better than the players can.

I think this has always been the NFLPA's achilles heel. Generally speaking, players are not adept at managing even simple personal finances and these times are anything but simple.

Maybe I'm misunderstanding but why do they need loans now? I thought they didn't get paid during this time under a normal year?

This is a good question.

 

[cobalt_27]

Sorry if Honda, but found this interesting; my suspicion has always been that the players will fold long before the owners do....

That's never really been doubted. It's why the players are taking legal action to end the lockout, because they know they'll lose if the owners get to continue it.

Exactly. The longer this goes on, the weaker the players get. I think that is something that the judge really was hinting out when she ordered them back to mediation. If they went ahead with the case and the judge did mostly anything other than lift the lockout, the players would be sunk. It is in the players best interest to get this done now at the mediation than let this go through with a court decision.

Players haven't thought this out more than 1-2 steps ahead. For now, they believe they got the owners exactly what they wanted them...in court. They won't talk/negotiate with any seriousness, as has been the case all along, because they think they have the owners by the balls in court. But, they don't even see on the horizon how the long, drawn-out appeals process is going to be the death knell for them. The owners will win that round, and that will be the end of it, and they'll be in an even worse bargaining position than when they first decertified. They're not very bright, and the owners are going to skewer them in the end.

I just do not see how they are going to 'win'. It may just be because I am sick of hearing 'to all those who dig our game' but I just do not see how DeMaurice is a good leader for the players. The BEST chance they have for the BEST deal is NOW. It goes on further, they risk getting losing badly in court (and again, pretty much anything but a lift of the lockout is a loss to them) and each day that goes by means more and more of the bulk of the players start having serious financial issues. Sure, the Peyton's and Drew's of the league are fine but most of these guys are ALREADY hurting for cash. That is bad for the NFLPA and their negotiation power.

Why are the two of you stating that the NFLPA is to blame for not getting a deal done now? If the NFL's analysis coincides with yours, then its in their interests to draw things out as long as possible, yes? To not agree to a new deal now. Even if they lose this round in court, they'll appeal and draw that process out, making the players feel real financial pain, yes?

I don't think the NFL has any interest whatsoever in letting this drag out. It's bad for business. I imagine they feel it's the lesser of two evils to draw this thing out as opposed to agreeing to the crap deal they struck in 2006, which I think in hindsight they clearly are regretting and puts the financial shape of the league in jeopardy, if they were to continue down that path. But, no doubt, they want to get a deal done.The players decided to litigate this. They have no one but themselves to blame if this takes forever to resolve by putting it in the hands of judges and the court calendar.

 

[Deranged Hermit]

Maybe I'm misunderstanding but why do they need loans now? I thought they didn't get paid during this time under a normal year?

I'm pretty sure that the official beginning of FA is when the bulk of roster bonuses and the like are due.

 

[Chadstroma]

This story is fascinating. I wonder if the players are factoring the cost of these high interest loans in the end result. While they may get a "better deal" in the end, many of the players will suffer significant short-term consequences. The players need to factor in the added interest costs they are incurring in these loans, the cost of health insurance and training, the loss of value in homes that may need to be sold to endure a prolonged lockout, etc. in determining whether they are being benefited by continued labor strife. Add to this the non-economic costs of the breakup of marriages, lack of counseling, etc. and the players cannot win when all is said and done. I do not believe that the average player will see more money when a deal is signed, even if the players get a better deal than that which has currently been offered. While the owners will similarly suffer, I believe that they are in a better position to assess the consequences of not signing a deal better than the players can.

I think this has always been the NFLPA's achilles heel. Generally speaking, players are not adept at managing even simple personal finances and these times are anything but simple.

Maybe I'm misunderstanding but why do they need loans now? I thought they didn't get paid during this time under a normal year?

This is a good question.

I watched NFL Live and they had Derrick Mason on because he blasted the Commish for talking about drug policy. He 'clarified' his comments that what he meant was that they needed to get a deal done and then worry about the drug policy. The entire interview I was just dumbfounded that a player had no idea that the drug policy was part of the deal. It turns out that he is the player rep for the union on the Ravens as well. If a player rep is so clueless about what is going on, how well informed and knowledgeable are the rest of the league on average? I don't know for certain, but I did have a NFL player as a customer a while back and I seem to remember his wife depositing checks off-season from the team. It was many moons ago so my memory could be off though.

 

[Chadstroma]

I think the worst scenario for the fan is that the court ordered mediation fails now and the court comes down with a decision to lift the lockout. I think that will give the players hope that they can win and it will cement the league in playing it out long term.

 

[fatness]

The players decided to litigate this. They have no one but themselves to blame if this takes forever to resolve by putting it in the hands of judges and the court calendar.

The owners caused this by asking the players for a huge sum of money back, for reasons the owners refuse to substantiate.

 

[Maurile Tremblay]

It's not really the players or the owners who caused it. It's the system. In negotiations, as an oversimplification, the side that gives in first gives up the most. So there's a lot of bluffing and stalling and posturing on both sides. It's just part of the process.

 

[Chadstroma]

The players decided to litigate this. They have no one but themselves to blame if this takes forever to resolve by putting it in the hands of judges and the court calendar.

The owners caused this by asking the players for a huge sum of money back, for reasons the owners refuse to substantiate.

It is good that you are still getting your NFLPA talking points email updates. Hint: It is not nearly as one sided as you seem to want to believe it is.

 

[GroveDiesel]

Maybe I'm misunderstanding but why do they need loans now? I thought they didn't get paid during this time under a normal year?

I'm pretty sure that the official beginning of FA is when the bulk of roster bonuses and the like are due.

Sure, but even that would be a one time payment, and I bet that most players either receive no roster bonus or a VERY small one. And does that mean if all those guys had been cut, they would have already been completely broke? If so, those guys really are stupid. To be in the NFL and go broke within a couple of months after being out of the league would be truly dumb. And in this case, they KNEW that it was a virtual certainty that the league was going to shut down for now and that they wouldn't be paid. They were being told to save up several game checks for MONTHS.

 

[massraider]

Maybe I'm misunderstanding but why do they need loans now? I thought they didn't get paid during this time under a normal year?

They don't. Aside from workout bonuses and roster bonuses (this is a small percentage of money paid) salaries are divided up into 17 payments. Which is why I question this report.

 

[Maurile Tremblay]

The way I read the report, it's not saying that players need money right now. It's saying that players are starting right now to look into arranging potential loans because they realize they may need money during the next twelve months. (But it's admittedly not clear.)

 

[David Yudkin]

I'm no genius, but I am wondering if this is really a non-story spun into a story. By that I mean, I would guess that this time of year EVERY year there are probably several players looking into these kinds of loans or with financial issues.

Except this time around, someone is putting things together to say "A-HA! This MUST be due to the lockout! The players are already caving!" As already stated, players don't get game checks until halfway through September, and any roster or workout bonuses are normally petty cash by comparison. I'm thinking much ado about nothing.

 

[Chadstroma]

I'm no genius, but I am wondering if this is really a non-story spun into a story. By that I mean, I would guess that this time of year EVERY year there are probably several players looking into these kinds of loans or with financial issues.Except this time around, someone is putting things together to say "A-HA! This MUST be due to the lockout! The players are already caving!" As already stated, players don't get game checks until halfway through September, and any roster or workout bonuses are normally petty cash by comparison. I'm thinking much ado about nothing.

I dug in a little deeper since I was wondering what checks I saw from my client previously... The big chunk of an NFL players income is the game day checks- which obviously would not have come anyways yet, so that is not income that they are missing. There are smaller checks for off-season workouts (not sure if that includes voluntary or just mandatory) but again, since there are no off-season workouts yet, this is not income that is missing. The other big part that is left is roster bonuses. I think those generally come in March, so that may be an area where some players missed out on some cash but not all players have roster bonuses, so that is hard to factor in. Overall, it looks like you are right that this is likely something that happens every year around this time but before there was no reason for anyone to make it into a story. With that all said, time is still very much on the side of the owners.