Professional Athletes get paid more in their short careers then most American's do in their entire life, but "Despite those staggering salaries, many stars end up dead broke. And many Americans wonder how that’s even possible. Yet it happens all the time. Athletes lose their money at an alarming rate. Analysts at Mint.com report that 60% of NBA players file bankruptcy within five years of retirement. Football players are even worse. More than 78% of NFL stars will file for bankruptcy within five years. Major League Baseball (MLB) players have only mildly better luck, filing for bankruptcy four times more often than the average U.S. citizen." (Preston) Its clear to see from the percentages that there are a lot more NFL players that file for bankruptcy then any of the other two major sports in America.
It is surprising that their would be a higher percentage of bankrupt NFL former players, because the NFL itself offers a Rookie Symposium which is "an orientation for all rookies drafted by the NFL. The program offers rookie players the chance to learn about life in the NFL—the development, conduct, engagement, and responsibility necessary to succeed—and prepare them for their career as professional football players." (NFL Life line) It also has a NFL Transition Assistance Program which is "an overview of the transition from the NFL to other professional pursuits. Through a combination of academic topics and success stories from guest speakers, the program supports former NFL players through the successes and challenges of a second career." (NFL Life line) The NFL has a life line which players can call free and it is confidential.
The NBA percentage rate didn't surprise me that much till I found out that there is a Rookie transition held every year "The program is a league-wide mandatory initiative for rookies entering the NBA that helps provide young players with information and resources that enable them to proactively make quality decisions and successfully adapt to the lifestyle and challenges of the NBA." (Remme) The program addresses "the business of basketball, continuing and technology education, drug and alcohol education, financial education, health and safety, legal education, media and image communications and professional ethics." (Remme) I understand that not all NBA players end up bankrupt, but 60% is still too high considering the fact that within the first year of their career they have to attend the Rookie transition seminar.
Works Cited
- Preston, Chris. "Five Reasons Professional Athletes Go Broke." N.p., 25 Mar 2013. Web. 29 Mar. 2014. http://www.wyattresearch.com/article/five-reasons-professional-athletes-go-broke/.
- Remme, Mark. "Rookie Transition Program Helps Players Adjust To NBA Life." NBA, Minnesota Timberwolves, n. d. Web. 29 Mar. 2014. <http://www.nba.com/timberwolves/news/rookie-transition-program-helps-players-adjust-nba-life>.
I think the same stats could be found for those who win large sums of money in the lottery. I cannot say I blame them alone for any of it. Imagine for a second that you have worked all your life to make it big and the moment you do you of course want to treat yourself. Those treats come in the form of houses and cars and new friends that all help you spend the money. The 5 star food is the only food good enough now, the cars have to cost six figures. In the end just like athletes at retirement the money has to run out at some point and when it does, we see what happens.
ReplyDeleteThis is an intersting subject because we see it happen and the media makes sure everyone knows about it. I think Wesley Snipes was more famous for being broke than he was when he was making movies.
I defiantly agree with you and Jason. Money can really be a blessing or a curse for some people. It is very interesting topic no one really talks about why or how they get to that point. This is happening a lot lately with celebrities and sport figures. I use to be involved with investing and I saw a lot of people loose money over night. That is why it is important that you surround your self with people that know what they are doing and they can advice you if they really do not think that you should buy that third condo in Miami. It is nice to indulge yourself with nice things, why not if you work hard for it, but it should not have to get to the point of bankruptcy.
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