New studies show that within two years of retirement 78% of NFL players are bankrupt or in severe financial distress. Within five years of retirement an estimated 60% of former NBA players are broke. A large number of former MLB players befall similar fates. This sounds incredible considering the minimum sallary for NFL rookies in 2009 is $310,000. Players who last for two years receive a minimum salary increase to $460,000.
There are a number of factors at play in the rapidly diminishing wealth of retired athletes, the economy being the latest addition to the list. Professional athletes pawned around 400 rings last year on championship-rings.net, a 33% increase over the previous year almost wholly attributed to the flailing economy. Failed investments and incompetent and/or fraudulent money managers also figure prominently in cautionary tales. Add in a growing entourage, alimony, and child support and you have a recipe for disaster.
Former NBA baller Shawn Kemp has at least seven children by 6 women and Travis Henry has nine children by nine women. Both have seen their fortunes fall (and in the case of Henry, his freedom taken away) by child support obligations. Prior to calling off his divorce to wife Shaunie, Shaquille O'Neal was chafing at the amount of money requested by his estranged wife yet, spent approximately $875,015 each month, including $26,500 for child care, $24,300 for gas and $17,220 for clothing.
Former pressure by industry vets on rookies to make expensive purchases and splash cash around has been replaced by advice for temperance and moderation in spending, entertainment, and socializing. Rather than phone numbers of groupies, athletes now exchange contact information for good financial planners.
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There are a number of factors at play in the rapidly diminishing wealth of retired athletes, the economy being the latest addition to the list. Professional athletes pawned around 400 rings last year on championship-rings.net, a 33% increase over the previous year almost wholly attributed to the flailing economy. Failed investments and incompetent and/or fraudulent money managers also figure prominently in cautionary tales. Add in a growing entourage, alimony, and child support and you have a recipe for disaster.
Former NBA baller Shawn Kemp has at least seven children by 6 women and Travis Henry has nine children by nine women. Both have seen their fortunes fall (and in the case of Henry, his freedom taken away) by child support obligations. Prior to calling off his divorce to wife Shaunie, Shaquille O'Neal was chafing at the amount of money requested by his estranged wife yet, spent approximately $875,015 each month, including $26,500 for child care, $24,300 for gas and $17,220 for clothing.
Former pressure by industry vets on rookies to make expensive purchases and splash cash around has been replaced by advice for temperance and moderation in spending, entertainment, and socializing. Rather than phone numbers of groupies, athletes now exchange contact information for good financial planners.
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I think surrounding themselves with the wrong people plays the biggest role in separating those fools from their money.
ReplyDeleteSMH they say a fool and his money are soon seperated.
ReplyDelete$875,000 a month! On what? This is ridiculous. Most people are lucky to see that kind of money in a lifetime. Think of all the children he could educate all the families he could feed with that money and he spends it on bull. I'm depressed now.
ReplyDeleteI'M DEPRESSED TOO. SHE SPENDS ALL OF THE JUST ON GAS!!! WOW! THEY JUST DO TOO MUCH. IT'S JUST TOTALLY CRAZY TO ME. THEY WOULDN'T KNOW WHAT TO DO IF THEY HAD TO BE "REGULAR"
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