Captain Hookem
Rookie
- Joined
- Nov 26, 2013
- Messages
- 355
What if the loan holder doesn't care if it gets paid back?If these are loans, this is a disaster for these players. What's the benefit for them, other than basically getting an advanced pay check? So much risk if their careers don't pan out like assumed.
I have been perplexed by these rich boosters just throwing money away basically. The rich get richer by investing into products with a ROI (or at least a tax deduction). The loan angle would make more sense if they are ending up profiting.
Small time personal loans are available everywhere. Normally they operate on volume and high interest, knowing many will default. But the point is there are no penalties if the loan does not get paid back. Whether or not defaults are pursued are at the discretion of the private loan holder.
These are no different than personal loans... just worth bajillions more. So if the understanding is these are loans that both parties know will never need to be paid (even if paperwork says otherwise), what's the legality there? Seems like a lot of big spenders think they've found a loophole.