Post by Admin on Feb 12, 2013 17:15:33 GMT -8
The sports world is rife with tales of fiscal mismanagement, but this might just set a new mark: a former financial adviser for Vince Young testfied that the former quarterback took out a seven-figure, high-interest loan during the 2011 lockout in part because Young wanted to throw a $300,000 birthday party for himself.
The revelation came amid depositions for a case in which Young is challenging a $1.7 million judgment against him by Pro Player Funding LLC. Pro Player is a boutique lender which specializes in lending to professional athletes. Young had borrowed $1.9 million at 20 percent interest in May 2011.
According to Ronnie Peoples, president and CEO of Peoples Financial Service, Young had already paid for the party and sought the loan from Pro Player, with Peoples' assistance.
However, Young's attorney, Trey Dolezal, said Peoples' recollections were inaccurate or incorrect. "I have no idea what he's talking about with the birthday party," Dolezal told the AP, "and neither does Vince."
At issue are documents that Young signed; Peoples said the documents were loan closure instruments, whereas Dolezal said they were banking instruments.
Young is one of many athletes who took out high-interest loans to tide themselves over during the lockout. As Yahoo! Sports reported in 2011, many lending agencies offered loans to players at interest rates ranging from 18 to 24 percent, with default rates as high as 36 percent.
The problem for Young, Peoples testified, is that the quarterback had erratic and unpredictable expenses. "It's almost like I can have a $30,000 [monthly] budget that I know we had to pay here," he testified, "but then, you know, I get an invoice for a Ferrari that he just bought for $176,000, and they want their money."
Young has not played professional football since being cut by the Buffalo Bills before last season, and as Shutdown Corner noted in September, his financial problems have been persistent. In a related suit, Young has charged that Peoples and his former agent misappropriated $5.5 million. He has also filed suit against Pro Player, calling it "a predatory lender with a history of loaning funds to football players on extraordinarily onerous terms."
Even with the $26 million in guaranteed money Young received from the contract he signed with the Tennessee Titans in 2006, the quarterback was in a financial bind after five seasons in the NFL, according to Peoples. Asked to describe Young's financial situation in May 2011, Peoples replied: ''Not good.''
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The revelation came amid depositions for a case in which Young is challenging a $1.7 million judgment against him by Pro Player Funding LLC. Pro Player is a boutique lender which specializes in lending to professional athletes. Young had borrowed $1.9 million at 20 percent interest in May 2011.
According to Ronnie Peoples, president and CEO of Peoples Financial Service, Young had already paid for the party and sought the loan from Pro Player, with Peoples' assistance.
However, Young's attorney, Trey Dolezal, said Peoples' recollections were inaccurate or incorrect. "I have no idea what he's talking about with the birthday party," Dolezal told the AP, "and neither does Vince."
At issue are documents that Young signed; Peoples said the documents were loan closure instruments, whereas Dolezal said they were banking instruments.
Young is one of many athletes who took out high-interest loans to tide themselves over during the lockout. As Yahoo! Sports reported in 2011, many lending agencies offered loans to players at interest rates ranging from 18 to 24 percent, with default rates as high as 36 percent.
The problem for Young, Peoples testified, is that the quarterback had erratic and unpredictable expenses. "It's almost like I can have a $30,000 [monthly] budget that I know we had to pay here," he testified, "but then, you know, I get an invoice for a Ferrari that he just bought for $176,000, and they want their money."
Young has not played professional football since being cut by the Buffalo Bills before last season, and as Shutdown Corner noted in September, his financial problems have been persistent. In a related suit, Young has charged that Peoples and his former agent misappropriated $5.5 million. He has also filed suit against Pro Player, calling it "a predatory lender with a history of loaning funds to football players on extraordinarily onerous terms."
Even with the $26 million in guaranteed money Young received from the contract he signed with the Tennessee Titans in 2006, the quarterback was in a financial bind after five seasons in the NFL, according to Peoples. Asked to describe Young's financial situation in May 2011, Peoples replied: ''Not good.''
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