flgreen Posted May 18, 2011 Share Posted May 18, 2011 Locked-out players line up for cash loans Special to FOX Sports The Daily Updated May 17, 2011 1:38 PM ET By Chris Corbellini and Jason Schwartz As the NFL work stoppage continues with no end in sight, some cash-strapped players are taking out high-risk, high-interest loans to get them through the lean times — some as big as $250,000 with interest rates as high as 30 percent. Players make their entire salary during the regular season, and many rely on offseason workout bonuses to get them through the spring and summer. With opening day — and their next payday — uncertain, some are turning to lenders like AGR Sports Funding, a Virginia-based firm that specializes in lending to professional athletes. Jason Yorker, owner of AGR, likes to think of himself as a lifeline for NFL players. When cash gets tight, they can turn to him to borrow, as he puts it, “a couple extra hundred thousand dollars here and there.” To explain the 30 percent interest rate he charges, Yorker said that, unlike other lenders, he doesn’t care much about his clients’s credit scores or whether they have any assets to back up the loan. If he thinks a player’s good for it, he can get them the cash in just a couple of weeks. Since the beginning of the lockout March 12, Yorker said, business has been booming. “You’d be surprised at some of the names of people that have been reaching out to us,” said Yorker — declining to name names — adding that they even include Pro Bowl players. Over the past six weeks or so, according to Yorker, he’s issued 25 NFL players loans, ranging from $30,000 to $250,000. Last year at this time, he’d made just three loans. Of the current batch, 10 went to veterans and 15 to incoming rookies. The demand from just-drafted prospects left out in the cold by the lockout has been “off the charts,” he said. LABOR FIGHT HITS HOME The battle between millionaire players and billionaire owners greatly impacts common folks. Leon McKenzie, president of Sure Sports Lending, a Florida outfit, said the number of players coming to see him is increasing, as well. “There does seem to be more people looking,” he said, adding that his interest rates typically run from six to 15 percent. Considering that NFL players have yet to miss a game check, it’s somewhat curious that some veterans, as well as rookies, are looking for these loans. But Yorker said he’s been hearing from several players who’ve found themselves in need of quick cash after missing out on offseason workout bonuses. “Believe it or not, some guys are dependent on that,” he said. Chad Lewis, a three-time Pro Bowl tight end over a nine-year career in the NFL, indicated that many NFL players are notoriously free-spending and bad at managing their money. “Most players aren’t making what a rock star makes,” Lewis said. “But if their lifestyle is gonna approach that of a rock star, then their money will run out very quickly.” The minimum NFL salary is roughly $320,000, with the average approaching $2 million per season. “One of the things I do is try to go back and grab these young guys and say, ‘Understand, there’s going to be a famine,’” Sanders said. “They say, ‘What do you mean by a famine?’” Now, added Sanders, “Some of those guys are crying broke.” “You tell these guys to manage their money better, but it doesn’t happen,” said agent Rick Smith of Priority Sports and Entertainment. “So they take out bridge loans to get them through it.” The former union has opened a savings war chest, funded over the past two years by the players themselves, to help ease the monetary burden. The first payments began April 15, and according to NFL.com, up to $60,000 will be available per player. That’s close to what an average player would make during the offseason, but the concern is how to make those dollars stretch. “That’s basically to cover their insurance,” Smith said. “It’s their own money being kicked back to them, to be able to pay for their health insurance.” Another reason players are borrowing now — before even missing a major payday — is that they may be afraid credit will dry up if the lockout continues into the NFL season, said Darren Heitner, an agent and the author of sportsagentblog.com. After all, if interest rates are this high now, what will they be like when players start to miss game checks and lenders know they are even less likely to be repaid? IN TROUBLE Which players have been arrested since the lockout? To financial planners, these high-interest loans represent a troubling trend. “I get so frustrated when I hear stories like that,” said Ted Reid, a senior vice president and wealth adviser for Morgan Stanley, who’s been helping athletes invest their money for 25 years. “I’ve heard ranges way above the 15 percent level, but even 15 percent, that’s absolutely ridiculous.” Reid said that if players need cash, they ought to be taking out home equity loans or other, asset-backed lines of credit, with interest rates from 2-4 percent. Or they should start selling things off: “If you’re borrowing at 30 percent, it’s time to start liquidating your assets,” he said. But Yorker said he’s offering players a square deal. The interest is high because, more often than not, he’s not asking his clients to back their loans up with anything. “You ask any of my clients if they’ve ever felt that I took advantage of them, they’ll tell you straight up, I’m a lifesaver. When nobody would give them any money, I gave them money,” Yorker said. “They thank me and we’re friends. We continue to be friends after that. If they ever need money, they know they can come to me.” Link to comment Share on other sites More sharing options...
NjJets4027 Posted May 18, 2011 Share Posted May 18, 2011 This guy is a F**k**g Loan Shark. Does anyone know about the FDIC Consumer Protection laws?!?!? Link to comment Share on other sites More sharing options...
Scott Dierking Posted May 18, 2011 Share Posted May 18, 2011 tick,tick,tick. Link to comment Share on other sites More sharing options...
LWC611 Posted May 18, 2011 Share Posted May 18, 2011 A thirty percent interest rate is usury. That should be investigated and the lender should shut down and be locked up. Link to comment Share on other sites More sharing options...
NjJets4027 Posted May 18, 2011 Share Posted May 18, 2011 "In New York, if a personal loan agreement is crafted that includes an interest rate over and above the usury rate of 16%, there are two possible recourses. First, in many instances, when a personal loan has an interest rate above and beyond the usury cap, the loan agreement itself will be determined to be illegal and voided. On the other hand, there are instances in which a personal loan agreement with impermissible interest will be reformed to lower the interest rate to an appropriate level. The loan agreement will remain otherwise the same and enforceable." -www.usurylaw.com/state/newyork.gov Link to comment Share on other sites More sharing options...
flgreen Posted May 18, 2011 Author Share Posted May 18, 2011 Read an article last year that 60+% of football players declare bankruptcy with in 10 years after retiring. Wonder Why? What’s going to happen if these guys actually miss a game check? Link to comment Share on other sites More sharing options...
flgreen Posted May 18, 2011 Author Share Posted May 18, 2011 "In New York, if a personal loan agreement is crafted that includes an interest rate over and above the usury rate of 16%, there are two possible recourses. First, in many instances, when a personal loan has an interest rate above and beyond the usury cap, the loan agreement itself will be determined to be illegal and voided. On the other hand, there are instances in which a personal loan agreement with impermissible interest will be reformed to lower the interest rate to an appropriate level. The loan agreement will remain otherwise the same and enforceable." -www.usurylaw.com/state/newyork.gov Wonder what the laws are in Virgina and Florida? That's where these "Friends of the Players" are out of Link to comment Share on other sites More sharing options...
faba Posted May 18, 2011 Share Posted May 18, 2011 That should be reported to better business bureau. 30% interest rate Link to comment Share on other sites More sharing options...
snow_monkey Posted May 18, 2011 Share Posted May 18, 2011 This is why I have a hard time feeling sorry for NFL players when they are crying about needing/deserving more money. They already have more money than they should ever need, but they are just pissing it away. Link to comment Share on other sites More sharing options...
bitonti Posted May 18, 2011 Share Posted May 18, 2011 This is why I have a hard time feeling sorry for NFL players when they are crying about needing/deserving more money. They already have more money than they should ever need, but they are just pissing it away. for every cash-deal loan shark story i can point to a Dave Duerson story. im still wondering why the owners need a better deal? the last deal was so bad every franchise doubled in value in 10 years? ok we shouldn't feel sorry for the players, who should we feel sorry for? the dick bag who is using directv cash payments to buy another striker for Man United? (Bucs owner) or the other dick bag who is using team funds to transfer a defensive midfielder to Aston Villa (Browns owner) Link to comment Share on other sites More sharing options...
Scott Dierking Posted May 18, 2011 Share Posted May 18, 2011 im still wondering why the owners need a better deal? Because the old deal does not account for the realities of the new world. There are new media and marketing and revenue streams, and those all need to be accounted for better. Link to comment Share on other sites More sharing options...
bitonti Posted May 18, 2011 Share Posted May 18, 2011 Because the old deal does not account for the realities of the new world. There are new media and marketing and revenue streams, and those all need to be accounted for better. like what... twitter? the NFL sells the games online as well... i think that logic was used in the hollywood writers strike but i don't really see a justification for the owner's position... unless we are willing to accept pure greed as a justification. the NFL made a sh*t ton of money last year some teams were wildly profitable. it seems more like they are doing this out of spite. Link to comment Share on other sites More sharing options...
T0mShane Posted May 18, 2011 Share Posted May 18, 2011 Article seems a little dubious. Some scumbag loan shark bragging about sh*tloads of NFL stars rushing in to take out loans at 30% and we're supposed to nod and go, "see?" Link to comment Share on other sites More sharing options...
T0mShane Posted May 18, 2011 Share Posted May 18, 2011 like what... twitter? the NFL sells the games online as well... i think that logic was used in the hollywood writers strike but i don't really see a justification for the owner's position... unless we are willing to accept pure greed as a justification. the NFL made a sh*t ton of money last year some teams were wildly profitable. it seems more like they are doing this out of spite. They want to suppress future salaries that would otherwise grow commensurate to the league's growth so the blow that small market owners are going to take when Jones and Snyder rip profit sharing away from them is lessened. Essentially, they're saying "Don't sweat it, Ralph Wilson, though I'm going to take you down this alley and rape you, I'll see to it that you never have to pay a quarterback $30 million per." Link to comment Share on other sites More sharing options...
Scott Dierking Posted May 18, 2011 Share Posted May 18, 2011 like what... twitter? the NFL sells the games online as well... i think that logic was used in the hollywood writers strike but i don't really see a justification for the owner's position... unless we are willing to accept pure greed as a justification. the NFL made a sh*t ton of money last year some teams were wildly profitable. it seems more like they are doing this out of spite. NFL Network, game streams, new interactive marketing prospects, etc. I seriously doubt that they are putting people's careers in jeopardy because of "spite". Link to comment Share on other sites More sharing options...
Green DNA Posted May 18, 2011 Share Posted May 18, 2011 The Gambino family is shocked at the interest rates this guy is charging. Link to comment Share on other sites More sharing options...
CTM Posted May 18, 2011 Share Posted May 18, 2011 scum Link to comment Share on other sites More sharing options...
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