I'll link to support journalism and spam ads, but the bottom line is that he took out a $4 million loan in 2016 at a 15 percent interest rate. He then missed the first payment which, according to the agreement, caused the interest rate to rise to 23 percent.
He paid some of it back, but the balance was due in 2018 and now he's been in court and has been ordered to pay $2.4 million.
So let's talk about everything that he did wrong here.
1. First off, you have career earnings of $99 million to date. Why do you need a loan in the first place?
2. Second, you got a loan at a 15 percent interest rate, which then rose to 23 percent? Really? Were you shopping for the highest rate you could find? Did you misunderstand that a lower rate is better?
3. Here's the web site of the company that loaned him the money. https://www.democracycapital.com/ It looks like a 14 year-old created the web site in ten minutes. If you do a whois on that site, you end up on this site http://jimplacknews.com/, where some guy is making an argument that he can help athletes manage their money, apparently by securing loans for them at outrageous interest rates.
4. If you're going to borrow a large amount of money at usury rates, don't miss a payment and pay it off as soon as possible.
What on earth was so valuable to Adrian Peterson that he would do something like this? This whole thing is pretty much the stupidest thing I've ever seen anyone do. If he borrowed $4 million at a 23 percent interest rate, that means that he's been paying about $1 million a year in interest over the past two years. He's grossing about $2.5 million per year with the Redskins https://www.spotrac.com/nfl/washingt...peterson-4753/, so by the time you take out agent fees and taxes and stuff, he's been paying roughly two-thirds of his annual take-home income in INTEREST payments on this single loan.
Is Adrian mentally challenged or something? It seems like someone ought to get sued or arrested over this.
Originally Posted by Valiant:
Most athletes are dumb as fuck with money, regardless of color.
What does color have to do with anything? Does melanin somehow influence certain regions of the brain?
Originally Posted by Valiant:
These guys do not listen. Teams should pay ex players who went broke and a firm to tell them how to spread their money out for their lifetime to live off of.
They need a yearly reminder what happens.
If these guys don't listen, then what's the point in hiring the ex players and the firm?
Some of the bruthas in the NFL think they are more than they are. They think they can just do whatever they want. If you make 10 mil per year that's not enough to just do whatever you want. Have a 3 million dollar house is way to too much to spend. [Reply]
I could see taking a loan out on a mortgage, because if you are solid with your investments your earnings should be more than the interest you get on a shorter term mortgage
Originally Posted by cmh6476:
I could see taking a loan out on a mortgage, because if you are solid with your investments your earnings should be more than the interest you get on a shorter term mortgage
Well, you only turn 30 once, so you might as well get the camel. I chose to enter atop a Galapagos turtle on my 30th, but that wasn't a good idea. I missed most of the party. [Reply]
Originally Posted by :
Former Vikings running back Adrian Peterson is returning for a 13th season in 2019 and it’s becoming clear why.
Peterson is apparently broke despite making more than a $100 million in salary and endorsements during his career.
Peterson, 34, who signed a two-year deal to return to the Washington Redskins for $8 million in March, rushed for 1,042 yards and seven touchdowns in 2018. It was his eighth 1,000-yard season. He ranks 8th all-time in rushing and needs less than 400 yards to pass LaDainian Tomlinson and Jerome Bettis for 6th all-time. With another 1,000-yard season he’d move ahead of Curtis Martin for 5th all-time.
“The truth behind Adrian Peterson’s current financial situation is more than is being reported at this time,” attorney Chase Carlson said in a statement reported by Pro Football Talk. “Because of ongoing legal matters, I am unable to go into detail, but I will say this is yet another situation of an athlete trusting the wrong people and being taken advantage of by those he trusted. Adrian and his family look forward to sharing further details when appropriate.”
Peterson played for the Vikings from 2007-16, winning the NFL’s Most Valuable Player award in 2012.
The Athletic first reported Peterson was being sued in Pennsylvania lender for failing to pay back a $5.2 million loan. He’s also been ordered by a judge to pay back a $2.4 million loan in Maryland. Last year a Minnesota judge ordered him to pay back $600,000 on a different $2.4 million loan.
Originally Posted by Eleazar:
Around the time of his legal problems it was reported that there were 7, but he refused to say for himself how many there were.
Originally Posted by Buehler445:
Holy fucking fuck ass balls. 100M and he's upside down. Wow.
I really want to see a spreadsheet that shows his income year by year and his expenditures. I would pay $5 to any media outlet other than the Star or KCTV5 who did that. [Reply]
Originally Posted by Rain Man:
I really want to see a spreadsheet that shows his income year by year and his expenditures. I would pay $5 to any media outlet other than the Star or KCTV5 who did that.
I'll pitch in. I used to do audit, and that would be a fascinating one. [Reply]
