It is no secret that professional athletes get paid large amounts of money. In many respects, more money than most of us would make over our lifetime, but the sad truth is that more and more are finding themselves broke by the end of their careers. Why? Because when it comes to money, they do not have basic financial knowledge.
It has been estimated that approximately 78 percent of former NFL players and 60 percent of former NBA players are broke or financially stressed after retirement. Lawrence Taylor made an estimated $50 million over his NFL career, but was caught by the IRS for filing a false tax return and eventually filed for bankruptcy in 1998.
Four-time heavyweight boxing champion Evander Holyfield made more than $250 million in his career. He had a deal with Diet Coke, a video game, a record label, and was in several movies. Now, by most accounts, he is nearly broke. NBA player Kenny Anderson earned $60 million dollars over the course of his career, and subsequently filed for bankruptcy in 2005 as a result of poor money management.
And it is not just the men. WNBA star and world champion Sheryl Swoopes, had her own Nike deal for the Jordan-inspired “Air Swoopes” brand and made more than $50 million. She filed for bankruptcy in 2004.
What happens to many athletes and their money is indeed hard to believe. Lavish lifestyles, bad investment advice, and poor personal money management are all major reasons why going broke seems so prevalent for professional athletes. Issues such as child support, joblessness, and divorce contribute as well, but if any lessons can be learned, these should be included; nothing is promised for eternity and individuals should make wise decisions about their money. Planning for the future is an individual decision that each athlete can and should make. –torrance stephens, ph.d.
