I read an article - I think it might have been on FR - a while back about professional athletes and money troubles. Apparently, a surprising number of former pros end up going bankrupt within 5-10 years after the end of their career.
Curiously, many lottery winners suffer the same fate.
“I read an article - I think it might have been on FR - a while back about professional athletes and money troubles. Apparently, a surprising number of former pros end up going bankrupt within 5-10 years after the end of their career.”
I guess the money stops coming in as fast. Funny, most people I know expect that outcome when they retire - you’d think these guys could be taught that between dance lessons.
Anyway, athletes (in general) do not understand money--large sums can quickly flow away before they even realize it. Couple that with their hiring of poor money managers or who help themselves to more than their fair share and... But again, I thought Kosar was pretty sharp. It happens though.
Lottery winners- see above.
If you paid some guy $25 million over eight years as a pro for your team...he will dish out almost $12 million to IRS and his agent. Of the remaining $13 million...four million will go toward some mansion, which has a $40k yearly tax fee attached and $60k for repairs and lawn maintenance. If you were smart enough to avoid your buddies recommendation for a financial adviser or your cousin who claimed he was an expert on investing...you might actually have a $10 million nest egg five year after retirement.
I recall years ago hearing the story of Ernie Banks...who was the great shortstop of the Cubs...and at the end of his career...he basically had a house paid for and almost nothing else except his reputation. The reputation...was enough to get him a real job, which paid real money, and helped him survive the second career.
I was watching a sports segment two years ago...on Earl Campbell...famed Oilers player. He was basically smart enough to hand his wife a fair amount of his money, while the rest went to a investor game. None of the investor money ever did anything but sink into a pit. The wife? She was smart and put the money she was given into guaranteed savings and CDs apparently. The two today....have a house that’s clear, and this savings that the wife established is what they live off of.
These huge salaries? They aren’t accomplishing anything. The government is making a fair amount off this deal....and the investor guys are swiping a fair amount. The player is getting little of out of this in the end.
If I were going to sign a contract with a team today...I’d write so they pay me half of the money now and the other half in ten years...spread over several payments. At least I’d have something in my hand after my career.