Skip to content

Leagues

Sport-specific financing

  • Contract Loans
  • Contracts

Conquer Your Financial Game: A Guide to Contract Loans for Athletes

Eric Tomasini
Author: Eric Tomasini ·

For professional athletes, soaring salaries collide with career uncertainties. This is where contract loans step in, offering a game-changing way to leverage future earnings and conquer your financial goals. Whether you're aiming to invest, bridge career gaps, or simply breathe easier, this guide unlocks the secrets of contract loans and shows you how to take control of your financial future.

Professional athletes navigate a unique financial landscape. On one hand, the potential for high earnings is enticing. On the other, career uncertainty and fluctuating income present distinct challenges. This is where contract loans, the secret weapon in many athletes’ arsenals, come into play.

So, what exactly is a contract loan and how does it work?

Imagine this: your signed contract isn’t just a ticket to the playing field, it’s a key unlocking financial opportunity. Contract loans leverage the security of your contract to provide upfront cash, empowering you to make those big plans a reality, even before the final whistle blows.

What is a Contract Loan?

Contract loans are a specialized form of financing available to professional athletes in major sports leagues like the NFL, NBA, MLB, NHL, MLS, and more. They leverage the security of your existing or future contracts to provide upfront access to cash. Compared to traditional loans, they offer more flexible terms and consider your earning potential, not just your credit score. For professional athletes, contract loans can provide financial flexibility, cash flow, and the ability to make major purchases or investments during their playing careers.

Photo of hand putting money into pocket. Contract financing provides early cash flow for athletes.

How Can Contract Loans Benefit Athletes?

The versatility of contract loans is key. You can utilize them for a variety of purposes, including:

  • Realizing your dreams: Start a business, invest in property, or pursue your passions without waiting for years of salary accumulation.
  • Smart financial planning: Consolidate high-interest debt, build an emergency fund, or make strategic investments for a secure future
  • Navigating career transitions: Bridge the gap between contracts, cover offseason expenses, or prepare for free agency with financial peace of mind.
  • Boosting your performance: Invest in top-notch training, travel, or equipment to optimize your athletic potential.

Types of Contract Financing:

Sure Sports, a leader in athlete-focused finance, offers tailored solutions for every stage of your career:

Contract-Based Financing

Access up to 30% of your guaranteed contract value or 10% of a non-guaranteed contract.

Pre-Draft Financing

Top prospects in the NBA and NFL can secure funding based on projected salaries (NBA top 40, NFL top 100).

Free Agent Financing

Get approved for loans up to 10% of your estimated market value or 30% of a team’s written offer while navigating free agency.

Arbitration Financing

MLB and NHL players awaiting arbitration decisions can access financing based on projected value (up to 10%) or 30% of the team’s proposal.

Photo of man working at his desk. Contract loans let athletes access cashflow for financial goals.

Unlocking the Magic: How Contract Loans Work for Athletes

So, what makes contract loans such a financial game-changer for athletes? Unlike traditional loans that hinge on your credit score, contract loans tap into the magic of your future earnings potential. Imagine accessing up to 30% of a guaranteed contract or 10% of a non-guaranteed one, all with competitive interest rates. This flexibility translates to real-world freedom, freeing you from the constraints of waiting months for traditional loan approvals. With Sure Sports, funding can land in your account within a mere 2 business days after that final “yes,” giving you immediate financial firepower.

But the magic doesn’t stop there. Contract loans also empower you to craft a repayment plan that seamlessly integrates with your unique income flow and career trajectory. No rigid schedules or off-season pressures here. Breathe easy knowing you can tailor your payments to match your earning peaks and valleys, without the burden of prepayment penalties.

In essence, contract loans unlock a door to financial freedom, empowering you to invest in your dreams, bridge career gaps, or simply navigate the unique financial landscape of your athletic journey.

Photo of hand holding house keys. Contract loans pave the way to home ownership.

What is the Purpose of a Contract Loan?

Contract loans have several key purposes for professional athletes:

  • Access cashflow earlier in career before accumulating years of salary
  • Fund big purchases like a home or starting a business
  • Smooth unpredictable income gaps between seasons or contracts
  • Consolidate debt at lower interest rates
  • Finance training and development to boost performance
  • Build savings and investments for long-term security

The flexibility and customized terms make contract loans a versatile financial tool.

Photo of man at computer. Athletes can get tailored contract loan terms.

Applying for a Contract Loan:

Want to learn how to get a contract loan? The step-by-step process is easier than you think.

  1. Get Pre-Qualified: Simply submit your contract and a quick request. Sure Sports analyzes it and gets you a pre-qualification decision within 1-2 business days.
  2. Review Terms: If eligible, they’ll present personalized loan terms like interest rates and repayment schedules. You have 5 days to decide if it’s a slam dunk.
  3. Formalize It: Accept the terms and submit some paperwork, including a credit authorization. Sure Sports then conducts a credit check.
  4. Application Time: Submit additional documents within a couple of days to complete your application.
  5. Underwriting: This stage examines your financial picture and may take 3-5 business days, up to 2 weeks for complex cases.
  6. Decision Day: You’ll receive a loan approval with final terms, a decline, or a request for more information.
  7. Paperwork Finalization: Once approved, finalize loan documents in 1-2 business days.
  8. Funding Upfront: Celebrate! Your loan is funded within 1 week (private-line loans) or 2-4 weeks (bank-line loans) and the cash is at your disposal.

Remember, this is just a simplified overview. Sure Sports’ dedicated team guides you through every step, ensuring a smooth and stress-free process.

What Contract Loan Terms Are Available?

Contract loans offer athletes flexible and customized terms tailored to their unique situations and cash flow:

  • Loan Amount: Up to 30% of guaranteed contract value or 10% non-guaranteed.
  • Interest Rates: Competitive fixed and variable interest rates based on credit profile and other factors.
  • Fees: Origination fees from 0-2% are common. No prepayment penalties.
  • Term Length: Term lengths aligned with contract length. Typically 1-5 years.
  • Repayment Options: Repayment schedules are customized to match your career income cycles. Interest-only periods are available.
  • Draw Periods: Ability to access funds as needed for up to 12 months in some cases.
  • Collateral: No collateral is required beyond your contract.

By structuring repayments around your unique earning cycles, contract loans provide flexibility other financing cannot match.

Photo of basketball going through hoop. Athlete financing helps score financial wins.

Ready to Score Financial Success?

Contract loans are just one tool helping athletes win financially. Options like cash home purchases, insurance premium financing, and banking services round out the playbook.

The time is now to take control of your finances. Contact Sure Sports to explore how contract loans can empower your dreams. With the right financial game plan, your possibilities are endless.

Further Reading

Related Stories

Eric Tomasini
Author: Eric Tomasini ·

The Athlete Investor

Thanks to increased education and awareness, more sophisticated financial planning resources, and a greater emphasis on long-term financial stability, athletes are taking steps to ensure their financial security beyond their playing careers.