Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
Author: Scarinci Hollenbeck, LLC
Date: May 17, 2016
The Firm
201-896-4100 info@sh-law.comThe NFL’s Concussion settlement with former players over the long term effects of concussions has created a stir that The Neurologic Rehabilitation Institute referred to as “a feeding frenzy” among lenders.
Close to five years after the initial legal action on concussions began, the NFL reached a settlement with a number of individuals who once played in the league – and who are now dealing with the health repercussions of their former career. The brief history of the conflict between the league and athletes over the lasting effects of head injuries has been opaque and at times contentious. However, the cognitive setbacks athletes may suffer over time are becoming clearer.
Now the former players, many of whom suffer cognitive issues or physical ailments, are set to collect up to $5 million in payouts from the league. The settlement, historic in sports, has spawned a potentially costly subplot, though.
Lenders smell blood in the Gatorade, so to speak. Some have begun offering settlement recipients loans ahead of the payout that include some appealing incentives, The New York Times reported. The loans total tens of thousands of dollars and come without time limits. They’re near-irresistible to the untrained eye with debts to pay and little time to await the NFL’s eventual payout. However, these loans carry interest rates as steep as 40 percent.
When it comes to former athletes depleted of their fortunes with bills to pay and cognition affected by repeated concussions, the more unfavorable details of such a loan may go unnoticed.
The Times found that in the weeks since the Concussion settlement, several former players have acquired such loans against their eventual payouts, which are in purgatory pending the results of a second appeal and the specifics of the deal. The loans’ high interest rates, among other pitfalls, kick in after the funds are doled out and can substantially reduce the payout the athletes ultimately receive. There are over a half-dozen lenders dangling such loans at the moment, and a contingent of retired players interested in their services.
LaCurtis Jones, a former linebacker who spent a couple of seasons in the NFL, on top of some time playing in Canada, is one of those players interested in a loan. He understands the interest rates are high, but finds it hard to resist using a $100,000 loan to cover child support, his family’s needs and a mentoring program he hopes to start.
“I don’t have none of my money left from the NFL,” Jones told The Times. “I don’t want to get into a lot of debt, but I’m looking for someone to give me some advance money. I don’t need much.”
If you have questions about the concussion settlement or face issues many former NFL players such as Jones do, it may be best to consult a sports law attorney.
For more posts having to do with the NFL, check out:
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
The bankruptcy legal landscape presents both challenges and opportunities for businesses navigating financial distress. Understanding current bankruptcy trends can help businesses make more informed and strategic decisions. Corporate Bankruptcy Filings Trending Upwards Bankruptcy filings continued to trend upwards in 2024. According to statistics released by the Administrative Office of the U.S. Courts, personal and business […]
Author: Brian D. Spector
In December, the U.S. Securities and Exchange Commission (SEC) announced charges against two privately held companies for failing to file a Form D notice, which is generally utilized for exempt securities offerings. Here, the SEC’s enforcement sends a strong message: compliance with regulatory requirements is not optional and failure to comply can have significant consequences. […]
Author: Kenneth C. Oh
On February 14, 2025, the Office of General Counsel (OGC) of the National Labor Relations Board (NLRB) under Acting General Counsel William B. Cowen issued Memorandum 25-05, “New Process for More Efficient, Effective, Accessible and Transparent Case handling.” The Memorandum rescinds nearly all of the Memoranda issued by his direct predecessor, Jennifer Abruzzo, setting the […]
Author: Matthew F. Mimnaugh
If you purchase real property from a foreign person or entity, you may be required to withhold taxes from your payment to the seller under the Foreign Investment in Real Property Tax Act (FIRPTA). The federal tax law is designed to ensure that foreign sellers pay any applicable capital gains tax on profits realized from […]
Author: Jesse M. Dimitro
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!