When $26 Million Is Not Enough
I don’t usually follow sports news. But my ears did perk up when my husband was reading an aritcle yesterday about football player Vince Young’s financial problems. In 2006, at age 23, Young signed a rookie deal worth $26 million – and went on to make even more than that over a 6 year career. The unhappy ending: he was broke by the time he was 29.
At first glance, you might be wondering how on earth anyone could let this happen. But think about it – how many of us are making what seems like good or even great money – and still living way beyond our means?
Young is claiming his “trusted advisors” mismanaged his fortune. But the advisors are saying it was Vince’s elaborate spending that put him in the red. They claim the last straw was Young’s insistence on throwing himself a $300,000 birthday party – that he could not afford. (Why you would want to blow $300k on a birthday party even if you could afford it is another topic altogether…)
Young’s advisors claim the athlete insisted on taking out a $1.9 million loan – at a whopping 20% interest rate – to pay for the party and to keep his lavish lifestyle going during the 2011 lockout. Young is claiming his advisors took out the loan for their own benefit and misappropriated his money…
Cash-strapped Young defaulted on payments on the loan – and took up a legal battle claiming he shouldn’t be responsible for the money. No matter what the facts of this specific case turn out to be, just remember: taking out a loan at a 20% interest rate is a very, very bad idea.
Also – who knew there were “payday loans” for Pro Athletes?! Payday loans are usually associated with low wage earners – but apparently there are people willing to charge exorbitant interest rates to desperate people at every income level…
Where Does The Buck Stop?
There’s plenty of blame being passed around – but where do you think the buck stops? Do you have sympathy for Young and his financial predicament – can you relate it at all to your own life? Or do you think he is getting what he deserves for being irresponsible with his fortune? Tell us what you think!| Print