Signing a lucrative contract with the NFL or NBA should allow most athletes to live comfortably throughout their lives. However, despite earning millions over the course of their careers, many pro athletes find themselves broke after retirement.
Nearly 60 percent of NBA players are broke within five years of retirement, and over 80 percent of NFL players are bankrupt or under financial stress within two years of retirement. During a recent interview at an after school All-Star event at the B.E.S.T. Academy in Atlanta, Calvin Pace (who signed a $42 million deal in 2008) of the New York Jets discussed how some former NFL players lose millions. –amir shaw
Why do think so many NFL players find themselves broke after retiring?
I have been playing ball since I was 9 years old and I’m 29 now. Sometimes it’s hard to think about the day when you’re not going to play. You always think that a check will be there when that’s not the case.
What should NFL players do to put themselves in a better financial situation after their career ends?
We have to all take the time to think about life after football. You want to be able to enjoy life and put your kids through college. It’s important to think 10 years ahead. It’s tough to give a young person a large amount of money and tell them not to lose it. You just need good people around you.
Most players enter the NFL in their early 20s. Does the league provide financial guidance to the players?
The NFL gives every player a book of financial advisers who are certified. They don’t guide you towards a particular person, but they have people who are willing to help if needed. Most of the time, guys have their financial managers before they get a dollar. But it’s hard to see what type of work they will do if you don’t have money for them to manage.
How difficult is it to maintain focus on being a great player while managing your money?
While you are playing football, so much is going on that it is easy to lose track of some things. People would think that your life is set if you have one million dollars. You have to be proactive and stay on top of things such as taxes and paying bills. If you’re not focused on your money, it can get away from you quickly.