Same day loan critics attack NFL lockout loans

The average consumer-level same day loan comes with a 15 to 25 percent fee per $100 loaned. This amounts to $50 or $60 in most cases, which is hardly earth-shattering. According to Yahoo! Sports, now there's a high-dollar variant of such instant payday advances for disenfranchised athletes: the NFL lockout loan. Players out of cash as a result of labor dispute are being solicited by lending agents. Resource for this article - NFL lockout loans: More money, more problems by MoneyBlogNewz.



The issue with 36 percent Annual Percentage Rate on lockout loans



A 36 percent APR on a loan as little as $300 to $400 will not mean much while it can cost quite a bit for NFL lockout loans of over $60,000. Yet players from at least 16 NFL teams have already applied for such large-scale <a title="Instant Payday Loans Can Make or Break the Bank" href="http://personalmoneystore.com/payday-loans/instant-payday-loans/instant-cash-loans/">instant loans</a>, writes Yahoo! Sports.



The NFL Players Association lockout fund has helped some players, however clearly the response to high-risk lockout loans indicates that some players have not curbed their extravagant lifestyles in the absence of their paychecks. The NFLPA advised players to save at least three game checks from the previous season in anticipation of the 2011 lockout, however insiders report that the advice may not have been heeded. MSNBC states that it was also suggested by the National Football League Players Association that players do other things to save and make money. This would consist of autograph signings, fly coach or refinance their homes.



Money issues for NFL players



Sports psychologists suggest that star athletes are surrounded by enablers from a relatively young age. Since the players have never had to be in charge of their own finances, they do not know how to do it once they get to professional ranks. Throwing millions of dollars at somebody who may have grown up poor can also open the door to myriad temptations. After retirement, most NFL players end up bankrupt. Sports Illustrated estimates this to be about 80 percent of players. MSNBC indicates that up to 380 of the NFL's 1,700 players live from paycheck to paycheck, even though the average NFL annual salary in 2010 was $1.87 million. The rookie average was $320,000, but after taxes and agents, money issues can occur if players aren't careful.


A dissenting voice in support of lockout loans



Sherard Rogers, a financial adviser to a number of NFL athletes, told Yahoo! Sports that lockout loans are a legitimate product that meets player demand. Players that only spend could have trouble. They may need a little help.



     "Every NFL team was valued at over $1 billion, so they can weather the storm of a lockout. But could players if there weren't resources to cover this short-term labor dispute?" asked Rogers. "The key is to figure out how to solve the short-term liquidity issue and put the pieces in place to ensure they don't have this liquidity issue again."




Articles cited



MSNBC

msnbc.msn.com/id/41855264/ns/business-personal_finance/41855226

Philly Sports Column

philly.sportscolumn.com/showthread.php?t=11751

The Real Athlete Blog

accessathletes.com/blog/blogDisplay.cfm?/Education-is-Key-for-Pro-Athletes-596

The Post Game

thepostgame.com/features/201104/tpg-exclusive-cash-strapped-nfl-players-seeking-high-risk-lockout-loans

Both sides are feeling the 'deal heat'

youtu.be/CQD7MvhD3sI