If you have been broke like I have been before you know what a payday loan is. The short version is you are advanced your money based on what you make at your job.
So, if you are making $1500 every two weeks, you maybe are approved for an advance from the Payday loan people of $500, until you get paid.
Sounds good right? One small problem, with those advances come crazy interest rates (I’ve seen as high as 700%). So you get immediate relief, but you are always in the hole when you have to pay them back, which forces you to take more loans out. You see how this can be bad cycle to get into.
There should be no reason that Manny Pacquiao who has made over $200 million in his career should need to take advances from Bob Arum, but as far back as 2009 it has been common knowledge he has. Arum confirms that he fronted Pacquiao before the Rios fight and would do it again, now that his accounts have been frozen by the Philippines government.
Arum told The Times earlier this year that he fronted Pacquiao money in advance of his guaranteed $18 million purse he’ll receive for beating Rios. Pacquiao also stands to receive a percentage of pay-per-view sales, Arum said.
Henares said of 22 banks her agency has ordered to report on Pacquiao’s accounts, only two said they held deposits for Pacquiao and that the total was only 1.1 million pesos ($25,200), which is now covered by the garnish.
“It is unbelievable to me that he has only 1.1 million pesos,” Henares said.
Arum previously donated $25,000 to the typhoon relief effort and said he’d be willing to front Pacquiao more money for the recovery, “but where am I going to put it?”
We detailed how Pacquiao could have lost his fortune (I would hope though he has more than $25k on him) and we don’t know what the terms are when Arum fronts him money (I doubt that he is giving it to him out the kindness of his heart).
What we do know for Pacquiao not to become another boxer who ends up penniless he needs to get his affairs in order.