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NFL Lockout Fallout: Players Taking High-Risk Loans

The biggest fallout from the NFL Lockout thus far is not the opening of some sports agent Wild Wild West, where agents are prying clients from one another’s grasp at any chance they get.  If anything, that sort of atmosphere already existed and did not change much with the decertification of the NFL Players Association as a union for the players.  Instead, the biggest concern to date is the worrisome lending practices of NFL players in need, or with a strong desire, to take out loans.  These loans typically have terrible interest rates attached to them, which players will be complaining about for years to come.

A few weeks ago, Jason Schwartz of The Daily (News Corp’s new iPad magazine) contacted me because he was working on a story about how NFL players are weathering the Lockout financially and wanted to hear about my thoughts with regards to the loans being taken out by these players.  He ended up getting quite a group of industry leaders to contribute to his piece (IN THE POCKET: Some NFL players turn to high-risk loans to make ends meet)

Here is my contribution:

Another reason players are borrowing now — before even missing a major payday — is that they may be afraid credit will dry up if the lockout continues into the NFL season, said Darren Heitner, an agent and the author of sportsagentblog.com. After all, if interest rates are this high now, what will they be like when players start to miss game checks and lenders know they are even less likely to be repaid?

Other quotes in the article come from Deion Sanders, Rick Smith of Priority Sports, Leon McKenzie of Sure Sports Lending, Jason Yorker of AGR Sports Funding, three-time Pro Bowl tight end Chad Lewis, and Ted Reid of Morgan Stanley.

I’m not going to judge as to whether guys like Yorker are in the right or wrong with regards to offering loans fully equipped with 30% interest rates.  What I will say is that it is sad that it has gotten to the point where such loans are necessary.  Are athletes looking for lower interest rate loans and just not finding them?  NFL owners will recognize that players are above their heads in debt and will use it to their advantage to break the ranks within the NFLPA the longer that this Lockout persists.

By Darren Heitner

Darren Adam Heitner, Esq., is a preeminent sports attorney and the founder of Heitner Legal, P.L.L.C., a Fort Lauderdale-based law firm specializing in sports law, contract negotiations, intellectual property, and arbitration. He earned his Juris Doctor from the University of Florida Levin College of Law in 2010 and a Bachelor of Arts in Political Science, magna cum laude, from the University of Florida in 2007, where he was named Valedictorian of the College of Liberal Arts and Sciences. Admitted to practice in the state bars of Florida, New York, and the District of Columbia, as well as multiple federal courts, Darren also serves as a certified arbitrator with the American Arbitration Association.

As an adjunct professor, Darren imparts his expertise through teaching Sports Law at the University of Florida Levin College of Law and Name, Image, and Likeness (NIL) at the University of Miami School of Law in the Entertainment, Arts, and Sports Law LL.M. program. His scholarly contributions include authoring several books published by the American Bar Association, such as How to Play the Game: What Every Sports Attorney Needs to Know, and numerous articles in prominent publications like Forbes, Inc. Magazine, and Above the Law. His thought leadership in NIL has earned him recognition as one of the foremost experts by The Wall Street Journal, USA TODAY, and On3, and he has been lauded as a “power player in NIL deals” by Action Network and a “top sports trademark attorney” by Sportico.

Darren’s passion for sports law led him to establish Sports Agent Blog on December 31, 2005, initially titled “I Want To Be A Sports Agent.” The platform, created as a New Year’s resolution, has grown into a cornerstone of the sports agency community, offering in-depth analysis of industry trends, legal disputes, and agent-player dynamics. His commitment to the field is further evidenced by his representation of numerous athletes and sports agents, as well as his prior role as an Adjunct Professor at Indiana University Bloomington, where he developed and taught a course on Sport Agency Management from 2011 to 2014.

Darren’s contributions have been recognized with prestigious honors, including the University of Florida’s 40 Under 40 Award, the University of Florida Levin College of Law’s Outstanding Young Alumnus Award, and designation as the best lawyer in Fort Lauderdale by Fort Lauderdale Magazine. He remains an active voice in the sports law community, sharing insights through his weekly NIL newsletter and his X posts, engaging a broad audience on legal developments in sports.