Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comFirm Insights
The Problem with the NFL Concussion Settlement
Author: Scarinci Hollenbeck, LLC
Date: May 17, 2016
Key Contacts
Back
The Problem with the NFL Concussion Settlement
The 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 offering high-interest pre-settlement payouts
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.
Interest rates raise eyebrows, but interest persists
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:
- An Alternate Route to the NFL – the Regional Scouting Combine
- Self-Representation Could be a Setback in NFL Free Agency
- Unsung Heroes: Life on an NFL Practice Squad
- Industries: Entertainment & Media
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Does Your Homeowners Insurance Provide Adequate Coverage?
Your home is likely your greatest asset, which is why it is so important to adequately protect it. Homeowners insurance protects you from the financial costs of unforeseen losses, such as theft, fire, and natural disasters, by helping you rebuild and replace possessions that were lost While the definition of “adequate” coverage depends upon a […]
Author: Jesse M. Dimitro
Understanding the Importance of a Non-Contingent Offer
Making a non-contingent offer can dramatically increase your chances of securing a real estate transaction, particularly in competitive markets like New York City. However, buyers should understand that waiving contingencies, including those related to financing, or appraisals, also comes with significant risks. Determining your best strategy requires careful analysis of the property, the market, and […]
Author: Jesse M. Dimitro
Fred D. Zemel Appointed Chair of Strategic Planning at Scarinci & Hollenbeck, LLC
Business Transactional Attorney Zemel to Spearhead Strategic Initiatives for Continued Growth and Innovation Little Falls, NJ – February 21, 2025 – Scarinci & Hollenbeck, LLC is pleased to announce that Partner Fred D. Zemel has been named Chair of the firm’s Strategic Planning Committee. In this role, Mr. Zemel will lead the committee in identifying, […]
Author: Scarinci Hollenbeck, LLC
Novation Agreement Process: Step-by-Step Guide for Businesses
Big changes sometimes occur during the life cycle of a contract. Cancelling a contract outright can be bad for your reputation and your bottom line. Businesses need to know how to best address a change in circumstances, while also protecting their legal rights. One option is to transfer the “benefits and the burdens” of a […]
Author: Dan Brecher
What Is a Trade Secret? Key Elements and Legal Protections Explained
What is a trade secret and why you you protect them? Technology has made trade secret theft even easier and more prevalent. In fact, businesses lose billions of dollars every year due to trade secret theft committed by employees, competitors, and even foreign governments. But what is a trade secret? And how do you protect […]
Author: Ronald S. Bienstock
What Is Title Insurance? Safeguarding Against Title Defects
If you are considering the purchase of a property, you may wonder — what is title insurance, do I need it, and why do I need it? Even seasoned property owners may question if the added expense and extra paperwork is really necessary, especially considering that people and entities insured by title insurance make fewer […]
Author: Patrick T. Conlon
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
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.
The Problem with the NFL Concussion Settlement
Author: Scarinci Hollenbeck, LLC
The Problem with the NFL Concussion Settlement
The 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 offering high-interest pre-settlement payouts
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.
Interest rates raise eyebrows, but interest persists
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:
- An Alternate Route to the NFL – the Regional Scouting Combine
- Self-Representation Could be a Setback in NFL Free Agency
- Unsung Heroes: Life on an NFL Practice Squad