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Player borrows $500K at 23 percent interest

AP I MEX Mexico Money Found AP

With nearly four months to go until the first game checks are missed, some players already need money.

A lot of money.

Our buddy Rich “Big Daddy” Salgado of Coastal Advisors, one of the leading insurance firms for pro athletes, has posted on Twitter that an unnamed player recently obtained a $500,000 loan, at a whopping 23-percent interest rate.

For the non-math majors in the crowd, that’s $115,000 per year in interest.

Thus, even if the players who run out of money can line up enough loans to get through a full season with no pay, they’ll be paying a lot for the privilege of having that money.

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108 Responses to “Player borrows $500K at 23 percent interest”
  1. schemefactory says: May 17, 2011 9:18 PM

    pro owner? you are in the minority on OTHER sites…:http://espn.go.com/sportsnation/polls

  2. changsteinelgamal says: May 17, 2011 9:19 PM

    Maybe he’s going to turn around and loan it out to other players at 30%. Profit!

    Yeah right.

  3. willycents says: May 17, 2011 9:20 PM

    LMAO @ 23%.Lender must not have too much confidence in the loan being repaid coupled with no capitalization available for the loan. Let me guess, the reason the insurance guy know about it is because the player had to take out insurance to cover the loan in case of death or injury; fairly common practice in major loans.

  4. carson9 says: May 17, 2011 9:20 PM

    Stupid, stupid. All the money they make (even the bottom feeders make over $350,000) and they can’t save at all?! Pathetic. Hope they default and go in foreclosure like the blue collar fans that can no longer afford to go to NFL games.

  5. duanethomas says: May 17, 2011 9:21 PM

    Gawd! Plus there was probably a 5-10% fee for the person who brought the players to this loan broker. Why couldn’t he just go to the bank? Or a reputable financial firm?

  6. ezmoover says: May 17, 2011 9:21 PM

    23 per cent?

    That’s unsecured debt.

    Haha. Even lenders know that “guaranteed” NFL contracts are just a euphemism.

  7. rabiddawg51 says: May 17, 2011 9:21 PM

    Fools and their money are soon parted. Especially when they don’t have it yet…

  8. transam7816 says: May 17, 2011 9:22 PM

    Must have horrible credit

  9. moggy6actual says: May 17, 2011 9:24 PM

    That’s a player that would be in dire financial straits no matter what. Lockout or no lockout.

  10. footballfanatic3431 says: May 17, 2011 9:24 PM

    No way do players last a whole season without checks. Come July, they’ll cave in faster then Chicago’s oline.

  11. ramsfanjoe says: May 17, 2011 9:24 PM

    A Fool and his money are soon parted!

  12. gforce90 says: May 17, 2011 9:27 PM

    Glad to see the players using their educations to make sound decisions. First it was hiring De Smith, now 23% interest…couldn’t happen to a nicer group! Did this player put “slave” on the loan application for his occupation?

  13. captainobvious1 says: May 17, 2011 9:28 PM

    Hey players – I can’t loan you $500k, but I can swing a few G’s @ 23%! Any takers? Oh, I’ve also got this bridge . . .

  14. tjacks7 says: May 17, 2011 9:28 PM

    Judging by the amount borrowed, I’m assuming this guy makes over a million a year. It’s embarrassing for these guys that piss away their money like this.

  15. ivedoneyourwife says: May 17, 2011 9:28 PM

    That’s one expensive sports car. SUCKER!!!

  16. kuhawks2010 says: May 17, 2011 9:28 PM

    WOW..23% interest? It seems more and more athletes file for bankruptcy every day, and I see the trend will probably continue.

  17. cup1981 says: May 17, 2011 9:29 PM

    Seriously, what does this player do in the offseason, live in a cardboard box. Dude, you haven’t even missed out on any money yet!! WTF??

  18. oreo51 says: May 17, 2011 9:29 PM

    Sounds like he has to pay his drug dealer.

  19. Dustin Chace White says: May 17, 2011 9:29 PM

    And yet about a week ago you wanted to allow every player a vote on whether or not to agree to the owners proposed CBA. Durrrrrrrrrrrrrrr

  20. bucks12965 says: May 17, 2011 9:29 PM

    Maybe it was Chad Johnson. If he bought a car with it and gave the car to someone else, then he wouldn’t have to pay back the loan…right PFT readers?

    Seriously, why isn’t personal finance a required course in all high schools?

  21. nj22 says: May 17, 2011 9:29 PM

    Good. Build up some nice debt you dopes! You deserve it.

  22. palinforpresidentofnorthkorea says: May 17, 2011 9:31 PM

    Train wreck for the fools that loaned him that much money.

  23. theblowtorchreview says: May 17, 2011 9:31 PM

    Wow……I thought only poor people had to pay loan shark rates.

  24. georgeanderson2 says: May 17, 2011 9:32 PM

    His agent should be fired.

  25. mcwest1 says: May 17, 2011 9:33 PM

    Is this a common practice with some athletes as a way of financially making through the offseason? I mean, they wouldn’t be receiving any kind of income at this time of year, even if there wasn’t a lockout. Or did this athlete want to make a specific purchase making this an isolated case?

  26. toiletking says: May 17, 2011 9:33 PM

    I would like to know how many racist comments had to be deleted from this post.

  27. ajtexans says: May 17, 2011 9:33 PM

    Cmon Dez. Prime would only charge you 20%.

  28. txchief says: May 17, 2011 9:34 PM

    Oops, sorry about the typo.

  29. contraryguy says: May 17, 2011 9:35 PM

    “Moose, Rocco, help #27 find his checkbook.”

  30. terrellochouno says: May 17, 2011 9:36 PM

    I remember the backlash against that guy who took the job with the railroad rather than sign a contract with the Jets.

    You think he’s borrowing half a mil at 23% right now?

  31. jameswestphal says: May 17, 2011 9:36 PM

    I could get better rates in the back room of my local butcher shop.

  32. grandpoopah says: May 17, 2011 9:38 PM

    Dez Bryant.

  33. hobartbaker says: May 17, 2011 9:39 PM

    Can’t be cheap maintaining the Team Newton entourage. Just added a couple more hungry mouthes to feed.

  34. riverhorsey says: May 17, 2011 9:45 PM

    don’t these guys know anyone who can steer them right?

    Jesus, who in the hell is guys agent? needs to be fired.

    better yet arrest the

  35. 2009kenny says: May 17, 2011 9:45 PM

    The thing is that the lock out probably has little to do with folks borrowing right now as technically they aren’t due to be payed until the season starts. However some guys are due minimal work out bonuses. If you need that money now, then it has nothing tondo with the lock out

  36. j0esixpack says: May 17, 2011 9:54 PM

    23%? Sounds like the mob.

    And that would be awful if the mob had anything to do with the NFL.

    The next thing you’d know Goodell would be cracking down on teams for failing to accurately report injuries to ensure the mafia doesn’t lose money via an erroneous Las Vegas line.

    Oh, wait a second….

  37. willycents says: May 17, 2011 9:56 PM

    It was probably Tom Brady, he has a high maintenance wife, you know

  38. ampats says: May 17, 2011 10:03 PM

    Cromartie has alot of baby mouths to feed even if he can’t remember their names

  39. raynman49 says: May 17, 2011 10:03 PM

    Stay in college. Smarten up.

  40. kremis says: May 17, 2011 10:04 PM

    Lucky for him interest rates are at an alltime low!!!

  41. bucfandango says: May 17, 2011 10:09 PM

    Dez Bryant is at it again. More Bling.

  42. istateyourname says: May 17, 2011 10:10 PM

    Might as well use the American Express instead.

  43. cmr123 says: May 17, 2011 10:13 PM

    Not sure but i think the players get most of their money during the season and if they are borrowing money it is not yet because of the lock out.

  44. jfluke65 says: May 17, 2011 10:15 PM

    HaHa! This is how the owners can get their money back from the players.

  45. scudbot says: May 17, 2011 10:16 PM

    Okay, whoever it is isn’t a great money manager and that’s on him. But take a look at your credit card statement. 23% is a bargain if you’ve been late with payment or two. Second, this guy has no guarantee of making a dime from now on since there’s no CBA and nothing to securitize the loan since he probably owes more on his house than it’s worth. No way a bank would lend him a penny. Way too many of us are in the same boat, but most of us probably wouldn’t have run up bills and spent the rest. But we might have at age 22 or whatever in that environment.

  46. tmaleman says: May 17, 2011 10:16 PM

    it doesn’t say player, does it? it COULD be an NFL player. it could also be a soccer player, minor league baseball player, or just a dude that hooks up with tons of ladies who needs a quick infusion of cash to ball at the club.

  47. brewdogg says: May 17, 2011 10:16 PM

    Any of you think it was Newton or one of the other high picks? In which case, he wouldn’t have the money from the previous season’s paycheck…..

    Of course, whatever he needs 500k for right now, I can’t imagine it’s a necessity, so he’s still an idiot.

  48. chedberg says: May 17, 2011 10:16 PM

    Definitely not Tom Brady. His wife makes much more than he does.

  49. ramsfanjoe says: May 17, 2011 10:23 PM

    Stupid is as Stupid does!

  50. sc5000 says: May 17, 2011 10:26 PM

    If anyone wonders why the owners decided to lock the players out its because of stuff like this. These guys are idiots with there money and this labor situation is going to end like all the others before, the players will come running back begging for a deal from the owners so they can get some more spinners and earrings.

  51. ramsfanjoe says: May 17, 2011 10:26 PM

    Anyone here want to pool their cash? I here there are some Suckers I mean football players in need of some cash. I think we should charge a reasonable 25% for our trouble!

  52. peytonwantsaflag says: May 17, 2011 10:27 PM

    it would never be said of course but part of what’s got to piss these owners off something awful is that half the players they pay these big salaries to are to effin stupid to know how to handle it. They don’t invest, take care of family, contribute to society – it’s toys and hos and gold teef. What a waste.

  53. bigbeefyd says: May 17, 2011 10:32 PM

    I bet that’s some sweet-ass bling though. Am I right?

  54. crubenst says: May 17, 2011 10:33 PM

    Note to all players: Everyone is USING you in this game… D. Smith, the agents, the loan sharks…. they are ALL benefiting from this lockout. Demand IMMEDIATE negotiation so you can get in and get your paycheck. Start looking out for YOURSELF. no one else will.

  55. mistrezzrachael says: May 17, 2011 11:00 PM

    HAS TO BE CROMARTIE!!! 8 mouths to feed, all less than 6 years old..A few concieved on same day, probably same bed. [ Deb changed the sheets for him]

    Either that, or someone just spent a whole lot on jewelry..Dez????

  56. skins359 says: May 17, 2011 11:04 PM

    brewdogg says:
    May 17, 2011 10:16 PM
    Any of you think it was Newton or one of the other high picks? In which case, he wouldn’t have the money from the previous season’s paycheck…..

    Of course, whatever he needs 500k for right now, I can’t imagine it’s a necessity, so he’s still an idiot.

    51
    ————–
    Newton has money. $1,000,000 from Under Armour and God knows how much from the SEC.

  57. jamaltimore says: May 17, 2011 11:12 PM

    I didn’t know Jerry Jones was in the banking industry…

  58. sambradfordismyhomeboy says: May 17, 2011 11:13 PM

    If we’re all in the business of “speculating”, Dez Bryant spent a quarter of a MILLION dollars on bling during his first NFL season. That reckless spending sounds like a guy who needs to visit freecreditscore.com, not visiting a freakin’ mob boss named Rich “Big Daddy” Salgado. Don’t be surprised… if Dez ain’t collecting a paycheck by October that he wakes up with a horse’s head lying next to him in his bed.

  59. wwwfella says: May 17, 2011 11:17 PM

    they players should talk to bobby bonilla he can show them how to deal with money

  60. jbcommonsense says: May 17, 2011 11:23 PM

    @schemefactory — lol Don’t trouble them with facts. These bored team employees are trying to create the illusion of a majority.

  61. timegambit says: May 17, 2011 11:38 PM

    Salgado is the mans name?

    I think I saw this episode on The Soprano’s.

  62. oldbyrd says: May 17, 2011 11:44 PM

    FACT 80% of the players retire broke. I thought they all went to college? Well, when you hire Dufus Smith I can see why

  63. msclemons67 says: May 17, 2011 11:52 PM

    chedberg says: May 17, 2011 10:16 PM

    Definitely not Tom Brady. His wife makes much more than he does.
    ————————————————————–

    Actually, I believe Tom is technically the wife in that marriage.

  64. dennis2488 says: May 17, 2011 11:56 PM

    well if he repays it immediately he wont need to pay much interest but chances are that its some moron like antonio cromartie who will blow all his cash and be 10 million in the hole by the time he retires.

  65. thefiesty1 says: May 18, 2011 12:05 AM

    That sounds like something more than one of the stupid players would do. No clue whatsoever how to manage the millions they already get. The “unnamed” player deserves paying usury rates.

  66. lionsmaverick says: May 18, 2011 12:10 AM

    I feel like reading NFL news has turned into a Business or Marketing class….

  67. alanhb says: May 18, 2011 12:11 AM

    players are just like a lot of Americans, over extended and living beyond our means. this loan is just like those silly payday loans some people take out. sad

  68. riverhorsey says: May 18, 2011 12:17 AM

    Animal Planet is about your speed ezwriter69

    keep those diapers dry buddy:)

  69. billsfan1 says: May 18, 2011 12:30 AM

    Amazing….I make 60k per year and I saved enough to support my wife and 2 daughters so my wife doesn’t have to work while finishing nursing school…

  70. macjacmccoy says: May 18, 2011 12:33 AM

    Makes you wonder how much owners and front office personel usually help out these players. Like you said none of them have missed a pay check so far. So even if the lockout was happening this guy and players like the ones who asked Brandon Graham for money would have had these problems anyway. But we never heard of things like this before.

    So whats that mean? Do players usually get advances from the team? Or from there agents? And now because of the lockout the teams cant do it and the agents cant afford it? Or maybe its as simple as its just now being reported. Maybe players take out these ridicolous loans or hit up teammates every year but its only being reported now because it fits into some scenario a reporter is trying to create or makes some point a reporter is trying to get across about players and the lockout.

    Who knows. I dont. I just find it strange that it just so happens that during a year that a lockout is occuring we start to here for the 1st time about all these active players who need to borrow money before they even miss there first pay check. It makes me think that we arent being told the whole truth or that somone is trying to turn something that is a common occurence and happens every year in the NFL into something that is lockout related.

    Its all a little suspicious to me and I have no doubt that the sources who are behind putting out these stories in the middle of a lockout have ulterior motives in doing so and arent just in it for a good story.

  71. crackerjackjoe says: May 18, 2011 12:37 AM

    “For the non-math majors in the crowd, that’s $115,000 per year in interest.”

    ————————————

    And for you lawyers out there, that is actually $127,932 in interest for the first year (assuming normal monthly compounding).

  72. xtb3 says: May 18, 2011 12:43 AM

    so what? you know what interest credit cards and mortgages compounded actually charge? dont have te money to repay and the socialist government will “bail out” the debt owed to the billionaire banks. loansharking is now legal!

  73. southbeachnorth says: May 18, 2011 12:57 AM

    I guess Fat Albert needs the coin for his 4-5 nights of partying over memorial day weekend (with white girls only of course lol).

  74. trollaikman8 says: May 18, 2011 1:22 AM

    God damnit Dez.

  75. jcd213 says: May 18, 2011 1:29 AM

    Shawne Merrimans lights went out.

  76. ishiibrad says: May 18, 2011 2:00 AM

    Dumb asses, you`ve got yourself in that much debt and you`ve made how much already?
    Gotta keep tha bling bling in the ching ching I need a wing wing so can yo do yo thing thing help me sing sing
    You can have that for free Dumb ass!

  77. redskinsrt says: May 18, 2011 4:03 AM

    rookie?

    Dez Bryant?

  78. bluefan204 says: May 18, 2011 4:47 AM

    One word: Idiot

  79. jeff061 says: May 18, 2011 4:49 AM

    This is why the overwhelming majority of fans are pro owners

    Who would be stupid enough to put the future of this game in the hands of D smith and these idiot players!

  80. voiceofrealism says: May 18, 2011 6:07 AM

    …and the players want to be partners in the league. If the NFL is to succeed, the players need to be employees.

  81. tommytd says: May 18, 2011 6:14 AM

    Breaks my heart…

  82. waynefontes says: May 18, 2011 7:04 AM

    Should have hired Cam Newton’s dad to broker his deal, I’m sure he’d have gotten a much better rate.

  83. alewatcher says: May 18, 2011 7:13 AM

    “Player borrows $500K at 23 percent interest”

    —————-

    “Playa borrows $500K at 23 percent interest”.

    There, I fixed the title for you.

  84. phinsfan66 says: May 18, 2011 7:16 AM

    Gotta pay for that entourage, and for the car, and for the bling… Keeping up with all the others who have to show everybody how much money they got until they go bankrupt… Keep talking De Smith. I am sure the players will love you by the time this whole thing is done… Morons…

  85. chapnastier says: May 18, 2011 7:35 AM

    Anyone citing an ESPN poll of any kind has lost all credibility. ESPN has been proven to, over the years, do all they can to get viewers. I would bet that would involve skewing a poll as well. If you read the comments on the labor articles they skew in a completely different direction. The bottom line is, if you are still Pro-player after the owners have made 2 proposals and the players haven’t countered once, then you are a stubborn mule.

  86. harleyrider1973 says: May 18, 2011 7:50 AM

    these are some of the same people that want to tell the owners how to run a multi billion dollar business. It sad that some people are so dumb.

  87. Stupid Raiders Fan says: May 18, 2011 7:51 AM

    “A fool and his money are soon partying”

    - Steven Wright

  88. footballfan says: May 18, 2011 8:18 AM

    contraryguy says: May 17, 2011 9:35 PM

    “Moose, Rocco, help #27 find his checkbook.”

    **********

    Funny how a golf movie works even with football. Caddyshack is one of my all time favorites!

  89. mac3333 says: May 18, 2011 8:20 AM

    That’s just dumb ….

  90. donterrelli says: May 18, 2011 8:25 AM

    My guess is someone HAD to get their mom or themselves an Escalade with dubs.

  91. pargolf47 says: May 18, 2011 8:32 AM

    Let’s hope that athletes invest their money wisely and don’t fall ino the trap of paying exhorbitant amounts of their money to insurance agents like “Big Daddy” (or better “Fat Daddy”/”Sloppy Daddy”). Agents like this take advantage of the good fortunes of athletes to support their own extravagant lifestyles of dining (quite evident), entertainment and buying personal relationships. What a sham!

  92. canetic says: May 18, 2011 8:35 AM

    If any players are reading this, I’ve got plenty of money to loan at a mere 12% interest. That’s only 1% per month. Hit me up!

  93. steeelfann says: May 18, 2011 8:39 AM

    What the……is Barney Frank his advisor?

  94. phinheads says: May 18, 2011 8:40 AM

    Cromarties kids needed lunch money

  95. tombrookshire says: May 18, 2011 8:48 AM

    A half a mi to cover living expenses? I thought these guys had financial advisors to help keep them from financial ruin.

  96. govtminion says: May 18, 2011 8:49 AM

    One thing we know: It can’t be Dez. Where would he spend that kind of money? He’s not allowed in malls, remember?

    My bet? Ochocinco, having to pay off the bookie after the bull-riding fiasco didn’t go the way he wagered.

  97. prof1234 says: May 18, 2011 9:08 AM

    @billsfan1

    That wife you are leaving at home to make your BIG 60K a year is cheating on you and the kids arent really yours.

  98. touchdownroddywhite says: May 18, 2011 10:11 AM

    Please just shut down the season. I think the aftermath of player related bankruptcies and arrests might be almost as entertaining as football.

  99. flyinhighwithvick says: May 18, 2011 10:11 AM

    Hey, when you have to buy ridiculous jewelry and a new Rolls Royce’s for all the homeboys in the neighborhood, it can get expensive.

  100. detroitfootsketball says: May 18, 2011 10:14 AM

    why are nfl players so “dumb” most people live beyond there means why would they be different just imagine being young and rich and a lot of your friends even richer if there dumb must of us are

  101. detroitfootsketball says: May 18, 2011 10:26 AM

    why are nfl players so “dumb” most people live beyond there means why would they be any different just imagine being young and rich and a lot of your friends even richer if there dumb most of us are

  102. tjrubleysaudible says: May 18, 2011 10:35 AM

    $500k
    23% interest
    ?????
    PROFIT!

  103. mathsimillion says: May 18, 2011 10:45 AM

    Its bad financial decisions from immature people like this that put our economy in the crapper to begin with. Not to mention the bad financial decisions of banks and credit card companies to allow these types of loans in the first place. Will people never learn how to live within their means?

  104. thephantomstranger says: May 18, 2011 1:04 PM

    “For the non-math majors in the crowd, that’s $115,000 per year in interest.”
    ___________________

    I’m not a math major, but I know that when you take out a loan, you make payments on that loan so the amount of interest you pay depends on the term of the loan. If you plan on paying off the whole $500K in one year, you would pay $64,458 in interest. If it’s a 10-year loan, you would average $78,129 a year in interest. Still a lot of money, but nowhere near $115K a year.

  105. southbeachtalent says: May 18, 2011 3:21 PM

    I’m sure many athletes do this all the time regardless of lockout or not as in this instance the player hasn’t actually missed any pay checks. Regardless of profession and income most people in the U.S are in the same boat. (Credit Cards, Up side down mortgages etc..) So don’t throw rocks from your glass house people!

  106. commandercornpone says: May 18, 2011 8:32 PM

    them’s credit card usury rates…

    note to duh: IT’S OVER. GO THE NEGOTIATING TABLE AND SAY “YES, SIR” A LOT.

  107. bronco1st says: May 21, 2011 6:02 PM

    Bull!!! Unnamed sources, unnamed player, unnamed lending company. My source said 3 of the owners are over 2 months behind on their stadium loans and another owner received his first default notice.

  108. deconjonesbitchslap says: May 21, 2011 10:50 PM

    The government is also trying to find out if they can get this good of a deal on borrowed money

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