78% of retired NFL players go bankrupt or enter financial distress.

[CheeseMonkeys]

Ah, screw it. I'm quitting my job as a chemistry teacher and I'm gonna start manufacturing methamphetamine and I'm going to make some serious bank. Wait, that's already TV show? SHUT UP!

 

[PatsWickedPissah]

It's old but with the indignant posts cropping up RE: Welker I figure it's a good time for what I assume is a repost here (saw it on Reddit)

Recession or no recession, many NFL, NBA and Major League - 03.23.09 - SI Vault



Give it a read and think about this the next time you want to get self-righteous about a player trying to maximize their earnings. Only a fool wouldn't consider that they themselves could fall prey to this were the situations reversed.

Good topic. Wrong conclusion. Does not necessarily follow.
Were the answer more millions and not careful preservation of capital, the only bankrupt players would be the low paid ones. Not so.

It's disappointing that the players ignore the seminars that the NFL has for them on how to deal with money, something lottery winners don't receive. Are the seminars that bad or is the culture they grew up in which idolizes athleticism and ignores fiscal responsibility responsible? Some players get scammed, something that can happen to anyone who trusts the wrong advisors, but most simply fail to manage earned windfalls that would set most anyone up for life and their next generation as well. Hopefully the Moms that get given homes by many players still get to keep them.

 

[Sicilian]

My problem isn't maximizing the income, as every player has the right to do what he has to do to earn what the market dictates he is worth. My problem isn't even with their lifestyle, as I understand the temptation of sudden large amounts of money can throw a lot of people off, it's actually hard wired in our genetics.

My problem is the idea that we should feel sorry for them either way, because guess what? I don't care if the only thing you're qualified to do after you retire is bag groceries. You got a huge financial headstart on the average American, and then worked for a relatively miniscule length of time. Now we're supposed to feel sympathy for you because you pissed it away and now might actually have to get some other kind of job for the rest of your working life? Cry me a damn river.

And my problem with Welker's comments was restricted solely to him mentioning his family. As though if he didn't get more than $9.4m his future children might end up on the street, and that it wouldn't be entirely HIS fault if he let that happen. In the end I think it was just a poor choice of words and not reflecting of Wes' true character though.

 

[ThatllMoveTheChains!!!]

So what makes you guys think you would be the special 22% who doesn't end up struggling financially after their football career ends? And the parallel has already been drawn with lottery winnings causing issues.

Anyone who goes from nothing to being a millionaire overnight struggles with not ending up worse than when they started. Going from having $200 to your name to, say, $2m is a staggering change and it is very easy to lose perspective and to not understand that even though $2m seems like an unending supply of money - it really isn't. Lose a chunk of it to the government. Buy your mom a house. Buy yourself a house and suddenly you're broke.

It's really only hubris that would make anyone think they would be immune to this.

And to handwave away the fact that an extra million or two increases someone's chances of avoiding financial failure is ridiculous. The difference between $9m and $10m is substantial and could be the difference between a player becoming financially solvent or busted.

I'm not even going to comment on the jewelry bull**** because it smacks of thinly-veiled racism which this board always toes the line on anyways.

What you seem to be saying:

“Here's to alcohol: the cause of, and solution to, all of life's problems.”

The truth is more:

“Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime”

A player in Welker's situation needs proper advice/education on money management far more than he needs more money. I have no clue how you've come to the conclusion that a player who's able to blow through 9M will magically be set for life off 10. Best case that person would be broke slightly later. This isn't like rooting around in your pocket for change at the convenience store where if you find just the right amount you're good to go.

 

[Deus Irae]

What you seem to be saying:

“Here's to alcohol: the cause of, and solution to, all of life's problems.”

The truth is more:

“Give a man a fish; you have fed him for today. Teach a man to fish; and you have fed him for a lifetime”

A player in Welker's situation needs proper advice/education on money management far more than he needs more money. I have no clue how you've come to the conclusion that a player who's able to blow through 9M will magically be set for life off 10. Best case that person would be broke slightly later. This isn't like rooting around in your pocket for change at the convenience store where if you find just the right amount you're good to go.

Always good to hear people who don't have millions talking about how millionaires lose their money and how they handle it as if they're speaking from a position of knowledge. Meanwhile, the average American has more than $10k in credit card debt.

 

[State]

About the same as people who win the lottery.

 

[ThatllMoveTheChains!!!]

Always good to hear people who don't have millions talking about how millionaires lose their money and how they handle it as if they're speaking from a position of knowledge. Meanwhile, the average American has more than $10k in credit card debt.

Can you please explain to me how anything you just posted is relevant to what I posted?

 

[Sporin]

And to handwave away the fact that an extra million or two increases someone's chances of avoiding financial failure is ridiculous. The difference between $9m and $10m is substantial and could be the difference between a player becoming financially solvent or busted.

We'll have to agree to disagree. In my opinion, if you are going to piss away $9M, then you'll piss away $10M the same way.

 

[Deus Irae]

Can you please explain to me how anything you just posted is relevant to what I posted?

It really doesn't need explaining.

 

[Ring 6]

So what makes you guys think you would be the special 22% who doesn't end up struggling financially after their football career ends? And the parallel has already been drawn with lottery winnings causing issues.

Anyone who goes from nothing to being a millionaire overnight struggles with not ending up worse than when they started. Going from having $200 to your name to, say, $2m is a staggering change and it is very easy to lose perspective and to not understand that even though $2m seems like an unending supply of money - it really isn't. Lose a chunk of it to the government. Buy your mom a house. Buy yourself a house and suddenly you're broke.

It's really only hubris that would make anyone think they would be immune to this.

And to handwave away the fact that an extra million or two increases someone's chances of avoiding financial failure is ridiculous. The difference between $9m and $10m is substantial and could be the difference between a player becoming financially solvent or busted.

I'm not even going to comment on the jewelry bull**** because it smacks of thinly-veiled racism which this board always toes the line on anyways.

Its good that you decided not to comment on what you actually commented on, because your comments are a bunch of crap.
Since when is the decision to purchase jewelry, or find it wasteful anything that has anything to do with race? And to say this board toes the line of racism is flat out ignorant.

 

[Armchair Quarterback]

Always good to hear people who don't have millions talking about how millionaires lose their money and how they handle it as if they're speaking from a position of knowledge. Meanwhile, the average American has more than $10k in credit card debt.

So someone who makes a fraction of what these athletes make, pays their bills, live within their means and doesn't throw away their money on frivolous garbage has no right to give an opinion on someone who does none of that and loses millions. Good to know.

 

[ThatllMoveTheChains!!!]

It really doesn't need explaining.

Good talk.

 

[Why?PJ]

you people are incredible. This thread is everything why no one should even read this board. The arrogance, stupidity and condescension is totally amazing.

Why anyone would take the side of arrogant rich millionaires who don't have the common sense to hire someone to take care of their money is beyond me.

How anyone could pull the race card is just beyond me. Let's have a rule, anyone that pulls the race card for any reason must then kill themselves because of the humiliation they bring upon themselves and their families.

These fools need to be laughed at. I don't care what they waste the money on. When you earn that much money, spending less than you earn should be simpler, not harder.

Why the hell the NFLPA can't certify money people for the players to use is another thing that is beyond me. Is it really that hard?

 

[Teapot]

Case in point, a man should never where a watch like this. And he hasn't even made dollar one yet.

Ah, he is not from Miami University

 

[Triumph]

Here's to hoping Brandon Jacobs ends up in that 78%

Nooooooo

Brandons OK in my book for calling Rex a big belly, big mouth disrespectful bastard! I dont care about the TD in SB46.

 

[Triumph]

So someone who makes a fraction of what these athletes make, pays their bills, live within their means and doesn't throw away their money on frivolous garbage has no right to give an opinion on someone who does none of that and loses millions. Good to know.

Logan Mankins will never be broke.

He invests or saves his money and lives below his income.

 

[Fixit]

And to handwave away the fact that an extra million or two increases someone's chances of avoiding financial failure is ridiculous. The difference between $9m and $10m is substantial and could be the difference between a player becoming financially solvent or busted.

Mike Tyson went through two separate $100M fortunes. If only he had $101M, he would have been okay.

Guys get paid what they can get paid, and I find no fault with that. But to make the argument that they're not responsible for handling their own money (of which a year's worth is far more than most people will ever make within their lifetime), or that they're living on a financial razor's edge without that extra $1M, is mind-numbingly silly.

This whole thread is chock full of ridiculous. Give me $2M right now and my wife and I will make that work for us for the rest of our lives.

 

[Steve102]

sigh...

One of you guys said "capital preservation". That's the key. But we all know once you have it, it burns a hole in your pocket.

in another note, I really have a problem with the race card being played. It's not a race issue, it's an education issue. Give bazillions to young "uneducated" (read not business saavy) guys and they will likely burn through it. They need strong guidance and or exceptional self control to not spend spend spend.

 

[Triumph]

So what makes you guys think you would be the special 22% who doesn't end up struggling financially after their football career ends? And the parallel has already been drawn with lottery winnings causing issues.

Because I would take more than half the money after taxes and invest it to where I could live off the interest and never touch the capital for the rest of my life. I wouldnt trust my best friend to be my financial adviser. I would not get in the restaurant business and have my friends run the place.

In other words, I am accountable if I wind up broke.

 

[voluntarysaftey]

Is this stat skewed cause the majority of NFL players have short careers and are making the min wage?

Maybe the majority fo those bankrupt players are guys who played for 1-3 years and made ~1mil after taxes -- obviously that's alot of money for the avereage person but I can easily see how you can eat that up quickly, esp when you're surrounded by other rich people and end up spending on things (cars, meals) to be at their social level.

Obviously, if you've got a 10 year career and have made 10mil+, you should be able to live off it forever. Maybe sports leagues should turn their salaries into annuities and strongly encourage players not to go into debt -- that way the money gets stretched over time.

People tend to move their living standards up to their salary level. Whether you make 20k, 60k, 100k, 150k, 200k,1m,10m ppl at all levels tend to move up, and its hard to cut down the expenses. Unfortunately for athletes, they don't have that earnings level for 30-50 years.