It’s been almost four months since the NFL lockout began. Four months since NFL players got a paycheck. With those lavish lifestyles to finance some bank accounts are going to feel a pinch. House notes ,car notes, alimony payments, child support payments don't go away because there is a lockout.
And after hearing that the NBA owners and players are no where near close to an agreement, it might be awhile before those guys get a paycheck too.
Normally when working class people lose their job they know money is going to be tight and they have to figure out a way to manage their money with no income coming in. But athletes are not the average Joe.
Some make millions of dollars a year and they spend it on mansions, cars and women . It is their money and they can spend it on whatever they want. But with no money coming in right now I wonder if most of these athletes have finally learned how to manage and be smart with their money and avoid going broke.
Here's a list of casualties:
Latrell Sprewell, estimated career earnings: $50 million (Filed bankruptcy, 2007) Kenny Anderson, estimated career earnings: $60 million (Filed bankruptcy, 2005) Derrick Coleman, estimated career earnings: $87 million (Filed bankruptcy, 2010) Antione Walker, estimated career earnings: $110 million (Filed bankruptcy, 2010) Scottie Pippen, estimated career earnings: $120 million (Filed bankruptcy, 2003)Two years ago, Pablo S. Torre wrote an article for Sports Illustrated on How (and Why) Athletes Go Broke. In this article, Torre did some research and found out that: “1) by the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce; 2) within five years of retirement, an estimated 60% of former NBA players are broke.”
It’s kind of astonishing to hear that a person who makes millions of dollars a year would go broke but that’s what happens when athletes aren’t smart with their money. Even if you can afford it, do you really need ten cars in your driveway? Do you really need a 16 room, 15 ½ bathroom mansion when you’re the only person living in it?
African American players make up 79 percent of the NBA. And according to the Toronto Star 60 percent of NBA players are broke five years after they retire. I'll let you do the math.A majority of this could be avoided by education but most don't stay in school long enough to receive it.
Since the lockout started, I’ve heard stories of what NFL players are doing to save money. Like New York Jets safety Eric Smith.
The free agent, who has been in the league for six years, moved back in with his parents in Ohio. I know its tough for SOME men to go back to live with their parents. But with no money coming in you have to do what you have to do to keep money in your pockets.
Then there is the stories of some players who are still balling out of control despite not getting paid.
Like Eagles DeSean Jackson.
The arrogant wide receiver, that made $470,000 last year, spent $25,000 at a club and twitpic his receipt to impress whoever cares that he blows his money on liquor.
When I hear stories like that it doesn’t surprise me that 78 percent of NFL players go broke after retirement.
You have to be smart with your money no matter if you make $4 million a year, $400k a year or just $40,000 a year. Invest it. Save it. Just make better choices.
Drive one car. Live in one house.Have one wife or one girl friend. Wear a shirt more than once. Make extended family pay for their own dinner. Learn to say NO. Live the life of a retiree-once you've retired. Loan money, don't give it away.
Request a background check on your investment broker. Pay your taxes. Read the fine print. Don't start expensive habits- strip clubs, gambling, drugs, alcoholism,etc. Wear condoms...every time. Being frugal with your money may lead to less friends but if they are truly your friend they will understand.
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