Adrian Peterson illustrates why some athletes quickly go broke.
 

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.

https://www.espn.com/nfl/story/_/id/...d-pay-back-24m

It looks like it's not the first time he's done something like this, either. He borrowed $2.4 million in 2018 and defaulted on it. http://www.startribune.com/adrian-pe...000/473207503/ WTF are you doing, Adrian?

23% interest rate on a 4 million dollar loan?

https://pbs.twimg.com/media/B0-QXXnCAAAJr1h.jpg

There are a lot of people aside from gold diggers whose sole job and purpose is taking advantage of athletes who don't know shit about money.

He’s never struck me as an Alfred Einstein type.

If my math is right, the guy who loaned him the money has made twice as much money from Adrian over the past two years as Adrian has made.

I don't care how stupid Adrian must be. This guy ripped him off unless there's some amazing back story that we don't know about.

Almost as bad as Andre Rison.

Neither of them have shit on Adrian Peterson, though.

He is a dumb ****.

He got paid for 3 seasons where he did not play.

He is still a dumb ****.

Pound of flesh and then some.

Rain Man,

I found what Adrian Peterson bought with his loan.

<iframe width="560" height="315" src="https://www.youtube.com/embed/4iotrbDHvM0" frameborder="0" allow="accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

They sure gave him a lashing with interest like a tree stick lashing.

He's basically been using his head, neck and shoulders as a battering ram for probably the past 25 years.

Running backs usually aren't the brightest.

He got it in the balls.

Every one on this site, or really anywhere, would be able to live quite well with a 1 million dollar windfall...this dude has that like many many times over. Add to that he's a college graduate (I'm not...)...I don't feel like the the loaner is a crook, rather the loanee is a friggin idiot...

He somehow had to make all his child support payments, and all the payday loan places in D.C. couldn’t combine for enough cash

Couldn’t happen to a nicer child beater.....

Not that AP is living a stereotype...but how many kids by how many different baby mamas he gots?

ROFL
LMAO

Child beating therapy ain't cheap.

That actually would be worth it. I'd love to have a skull like that.

You'd think the NFL + Redskins would be willing to foot the bill on that.

I'll bet the 12 kids from 9 different women costs a helluva lot more than the therapy...

There are some pretty prolific athletes out there: https://www.complex.com/sports/2015/...tory/garrincha

at least 3 maybe more

Not as bad as Vince Young spending $5,000 a week at Cheesecake Factory.

CP pools some money together and make loan to AP for 22%. Win-win

Unfortunately, personal finance is rarely taught and most of these athletes think the gravy train will never derail.

****, I got $5 on it.

Man, I don’t know about that. Some of their cheesecake is ****ing delicious!

Even at 22%, he gets nothing from me.

It's pretty ****ing good...but not worth $5000.

That's fair; sounds like we'd get nothing from him.

Neither did the Vikings for three seasons.

If it wasn't for football, we'd never have heard of him and he wouldn't be so broke now.

BOOM!

This isn't strictly an athlete thing either.

I had an old coworker with a girlfriend who bought a used car with a loan sporting either 18 or 23% interest, I can't remember which exactly. I just remember being floored when he told me.

It's almost like his employer doesn't offer training on finances and making your money work for you.

It's almost like these guys never took any economy, finance or basic mathematics classes at a university they were paid via scholarship to attend.

I tutored football players at college, oh my it was brutal.

It's almost like they didn't pay attention when they were told about those things at their rookie orientation...

Most athletes are dumb as **** with money, regardless of color.

They don't want to listen to the boring rules and living not like a rockstar.

The main problem is these guys think they have the full amount and it is not going away for a long while.

Take a average player. In the league 3 years might make 1.4 million.
Taxes from everywhere, lucky to get 700k. But he bought him a house, car, momma a house and knocked up a gold digger. 200k left hopefully after not being picked up. Maybe he can sign in Canada. But child support will sap that money. Effectively broke, have to sell his house, hopefully he paid it off.

Player that signs a good contract extension, plays 8 or 9 years and makes 65million. Hopefully receives 30mil after everything. Buys momma a house gets him a 6million dollar home and multiple cars. Multiple kids. Taxes on cars and properties eat away. Then he finds out his friends or company stole 15 million.

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.

Honestly, the first person to start this would make a killing from pro teams.

Proof that even the highest paid can fall victim to the payday loan cycle of doom.

being broke is different for these guys as well. I see bankrupt broke athletes still rolling in g-wagons

I would imagine plenty of this has ate away his funds.

https://bleacherreport.com/articles/...birthday-party

They DO have that!

There are a lot of people aside from gold diggers whose sole job and purpose is taking advantage of athletes who don't know shit about money. Running backs usually aren't the brightest.

So many broke athletes. Millionaires attempting to live like billionaires is a recipe for disaster.

Unfortunately, a personal finance class isn't going to do much good. These athletes have financial advisors. It's an impulse control problem, and those are much harder to solve, especially for young men.

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<br />
What does color have to do with anything? Does melanin somehow influence certain regions of the brain?<br />
If these guys don't listen, then what's the point in hiring the ex players and the firm?<br />
<br />

That’s right, the camel.

Pride of OU, that AD.

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.

It's amazing how you manage to ****ing suck with every post.

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.

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

:shrug:

If you tried to explain that to these guys their heads would explode.

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.

He could got deployed to Iraq gotten paid to ride those. Win-win

Update

He probably doesn't even know, himself.

Holy ****ing **** 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.

I'll pitch in. I used to do audit, and that would be a fascinating one.

I would love to see a player not invest in anything big. lead a somewhat cheap life. Get stocks and invest in small things.

It happens all the time, it's just that it's not as interesting a story

https://www.theplayerstribune.com/en...l-60000-budget

I heard Adam Theilen is very frugal. He is not making the big money yet, but hates spending.

Gotta live life like a rap video, bruh.

I'm sure you all saw his 30th bday party, with camels, first class tickets for 300 guests..etc... what an idiot.

Thielen got paid, brah.

http://www.nfl.com/news/story/0ap300...-64m-extension

Cool. I think he will still make his parents pay for supper when they come to town.

Then he’s an asshole.

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<br />
Kirk Cousins drove an old crappy dented van with 100k miles on it and lived in his parent's basement in the summer (even after he signed his first big contract).
<br />
Gronk never touched a dime of his actual salary and just lived off of endorsements and other monies.<br />
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Lots of guys are smart with their money...we just don't hear about them because it doesn't make interesting news.

Can you imagine doing all that potential damage to your brain and coming out of it with absolutely nothing? Check that - less than nothing. His pension won't even cover the interest.

What a maroon.

This is wrong. If you come to TC in a Brinks truck then you will go broke. - CP probably

The only time he will not be broke is when he is dead. Then his 8 kids will assume the debt.

They call them financial advisors.

23% interest? That should be illegal. Even the mafia didn't charge that.

Aren't credit cards legally capped at 17.9% APR now?

A post that has both gronk and smart within - never want to see that again on CP

Hell of a running back, I will say that

CP, a veritable treasure trove of terrible financial information.

Nah the crazies get worse than 30%

Anti-Semitic post

JFC