An investigation by Yahoo Sports has found that players from as many as 16 NFL teams have already begun securing high-interest, short term loans, in anticipation of the NFL lockout.The interest on these loans can be anywhere from 18 to 36 per cent, putting them on par with bad credit cards or even payday loan services.
In addition, some of the lenders have required players to get insurance policies to cover the loans, in case they’re injured. That can add tens of thousands of dollars to the cost of loans.
All of which these players can scarcely afford. (That’s why they need the loans, right?) If players are already running out of money — or anticipating that they will soon — it only underscores the harsh reality of professional sports, where millionaires live paycheck to paycheck and end up broke as soon as the league is done with them.
That explains why there’s a hidden industry of private lenders that target the sports industry. Yes, these are adults, but for one of these lenders to claim that they aren’t trying to take advantage of financially naive rich guys is pretty disingenuous.