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Another money mismanagement story by a professional athlete
Old 12-19-2015, 07:37 AM   #1
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Another money mismanagement story by a professional athlete

Another story about professional athletes mismanaging their money and filing for bankruptcy.

Portis apparently made 43 millions in his career and now he's broke. He even stiffed his own mother for a half million bucks and owes four different women 412K in domestic support obligations.

Clinton Portis owes nearly $5 million, counts mother as creditor
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Old 12-19-2015, 09:02 AM   #2
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I wonder how much was spent on drugs, alcohol and hookers... The article does show gambling was a major problem.
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Old 12-19-2015, 09:07 AM   #3
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Lots of people on this board live on less than $7500/month but he needs $13000.
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Old 12-19-2015, 09:22 AM   #4
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These stories always astound me. No matter how stupid one is, I would think there is at least an iota of common sense to at least put some money aside (you know, like maybe a million bucks?) to avoid this very situation.

Hate to use an old cliche, but I guess this is just another dumb jock.
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Old 12-19-2015, 09:28 AM   #5
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I wonder how much was spent on drugs, alcohol and hookers...
...and the rest of it he squandered!
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Old 12-19-2015, 09:29 AM   #6
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Lots of people on this board live on less than $7500/month but he needs $13000.
Did not read the article, but if he owes 4 different women support payments then I would be surprised if that was enough.... then again, maybe that does not count these payments....
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Old 12-19-2015, 09:38 AM   #7
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He tried to put away not $1M, but $2M, but was swindled. $8M on a failed casino venture, not gambling losses. $287K to a casino, probably gambling and lodging expenses, which is a lot to an average person but is not a major part of $43M. Bad judgement on who to trust with his money and what to invest in, but if he actually had $13M in assets including the $10M that is now worthless, less $5M in debts, $8M would be $240K at a 3% withdrawal rate. $12,800/month is very close to that. He'll probably come through bankruptcy in ok shape as long as he can cut his lifestyle back.

I don't think the pro sports leagues or their players unions do enough for these guys. I don't know what all they do, but a session or two as rookies and maybe a session a year, if they even do that, isn't really enough.
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Old 12-19-2015, 09:49 AM   #8
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The article also highlights the failure of the NFLPA to look out for players. I remember seeing a report on the NFLPAs recommendation of 'approved' financial advisors for players. It all seemed quite shady. Portis lost a big chunk of change to one of these guys. How hard would it be to set up a legitimate counseling service and direct these suddenly rich teens and twenty-somethings to Vanguard with even 10% of their earnings. Wayne Gretzky tells the story of his father Walter 'advising' him to put his signing bonus into an annuity when he was 18. One can imagine what that kind of money put into an annuity in 1979 would be worth.
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Old 12-19-2015, 09:52 AM   #9
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He tried to put away not $1M, but $2M, but was swindled. $8M on a failed casino venture, not gambling losses. $287K to a casino, probably gambling and lodging expenses, which is a lot to an average person but is not a major part of $43M. Bad judgement on who to trust with his money and what to invest in, but if he actually had $13M in assets including the $10M that is now worthless, less $5M in debts, $8M would be $240K at a 3% withdrawal rate. $12,800/month is very close to that. He'll probably come through bankruptcy in ok shape as long as he can cut his lifestyle back.

I don't think the pro sports leagues or their players unions do enough for these guys. I don't know what all they do, but a session or two as rookies and maybe a session a year, if they even do that, isn't really enough.
+1

Was typing my response at the same time. They say there is no such thing as a free lunch but clearly these young athletes are just that to many.
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Old 12-19-2015, 10:02 AM   #10
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He tried to put away not $1M, but $2M, but was swindled. $8M on a failed casino venture, not gambling losses. $287K to a casino, probably gambling and lodging expenses, which is a lot to an average person but is not a major part of $43M. Bad judgement on who to trust with his money and what to invest in, but if he actually had $13M in assets including the $10M that is now worthless, less $5M in debts, $8M would be $240K at a 3% withdrawal rate. $12,800/month is very close to that. He'll probably come through bankruptcy in ok shape as long as he can cut his lifestyle back.

I don't think the pro sports leagues or their players unions do enough for these guys. I don't know what all they do, but a session or two as rookies and maybe a session a year, if they even do that, isn't really enough.
According to the article he is reporting an income of $7500/month and expenses of $12,800 so he has $5300 in negative cash flow.
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Old 12-19-2015, 10:13 AM   #11
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According to the article he is reporting an income of $7500/month and expenses of $12,800 so he has $5300 in negative cash flow.
I'm also retired and have a negative cash flow.
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Old 12-19-2015, 10:16 AM   #12
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I don't think the pro sports leagues or their players unions do enough for these guys.
I do not think high school does enough for these guys, and I know college is a lot different for a non-athlete...
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Old 12-19-2015, 10:20 AM   #13
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Agree. I don't think high school does enough for anyone in terms of financial literacy. So few excellent high school athletes make it to the big pay day but it can't be said that the NFLPA doesn't have the resources to provide services for which there is clearly a need in terms of income, literacy and predators.
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Old 12-19-2015, 10:25 AM   #14
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I'm also retired and have a negative cash flow.
I assume your portfolio withdrawals will make up for that. His assets will all be liquidated in bankruptcy so he can't retire any time soon and will need to get a real job if ha can't reduce his expenses.
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Old 12-19-2015, 10:45 AM   #15
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I'm also retired and have a negative cash flow.
I love that concept !!

I'm depleting my savings (all gone in about 60 yrs)
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Old 12-19-2015, 10:50 AM   #16
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I assume your portfolio withdrawals will make up for that. His assets will all be liquidated in bankruptcy so he can't retire any time soon and will need to get a real job if ha can't reduce his expenses.
I don't think you read what I wrote very closely.
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Old 12-19-2015, 12:13 PM   #17
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I don't think you read what I wrote very closely.
Got it. I'm a little slow this morning
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Old 12-19-2015, 12:18 PM   #18
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I do not think high school does enough for these guys, and I know college is a lot different for a non-athlete...
Why in the world blame the high school?

My guess is that he had every opportunity to learn, was encouraged and probably pushed to learn, but sometimes youngsters choose to blow it off.
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Old 12-19-2015, 12:20 PM   #19
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Agree. I don't think high school does enough for anyone in terms of financial literacy. So few excellent high school athletes make it to the big pay day but it can't be said that the NFLPA doesn't have the resources to provide services for which there is clearly a need in terms of income, literacy and predators.
I also think that most of these athletes come from poverty and don't have the family structure to advise them on money management.

The last year Wes Welker played for the Pats he lived in my neighborhood and I ran into his dad who was visiting him and he told me that he made sure Wes put aside a substantial amount from his first contract and invested it for the long haul.
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Old 12-19-2015, 12:33 PM   #20
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I also think that most of these athletes come from poverty and don't have the family structure to advise them on money management.

The last year Wes Welker played for the Pats he lived in my neighborhood and I ran into his dad who was visiting him and he told me that he made sure Wes put aside a substantial amount from his first contract and invested it for the long haul.
Yeah, family matters a ton. Both of the NFL guys that I know have benefited from that (although both are still active--one as coach, one as player). Hard to learn prudence as you are being handed a seven figure contract and all your family members and friends have their hands out. (Remember the prior thread about the baseball player Ryan Howard having to sue his mom and brother!?.)

An advisor who I know was counseling a young man as to how to put $$ away. The athlete nodded appropriately at all times and, at the end, asked: "when do I get my Bentley?"
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