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Another money mismanagement story by a professional athlete
12-19-2015, 06:37 AM
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#1
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,743
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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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12-19-2015, 08:02 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Williston, FL
Posts: 3,925
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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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12-19-2015, 08:07 AM
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#3
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Thinks s/he gets paid by the post
Join Date: Sep 2006
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Lots of people on this board live on less than $7500/month but he needs $13000.
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12-19-2015, 08:22 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
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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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12-19-2015, 08:28 AM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by Senator
I wonder how much was spent on drugs, alcohol and hookers...
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...and the rest of it he squandered!
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Living well is the best revenge!
Retired @ 52 in 2005
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12-19-2015, 08:29 AM
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#6
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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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12-19-2015, 08:38 AM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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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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12-19-2015, 08:49 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Feb 2013
Location: Toronto
Posts: 3,320
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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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12-19-2015, 08:52 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Feb 2013
Location: Toronto
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Quote:
Originally Posted by RunningBum
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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+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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12-19-2015, 09:02 AM
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#10
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,743
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Quote:
Originally Posted by RunningBum
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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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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12-19-2015, 09:13 AM
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#11
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by Corporateburnout
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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I'm also retired and have a negative cash flow.
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12-19-2015, 09:16 AM
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#12
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Join Date: Feb 2014
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Quote:
Originally Posted by RunningBum
I don't think the pro sports leagues or their players unions do enough for these guys.
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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...
__________________
FIRE no later than 7/5/2016 at 56 (done), securing '16 401K match (done), getting '15 401K match (done), LTI Bonus (done), Perf bonus (done), maxing out 401K (done), picking up 1,000 hours to get another year of pension (done), July 1st benefits (vacation day, healthcare) (done), July 4th holiday. 0 days left. (done) OFFICIALLY RETIRED 7/5/2016!!
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12-19-2015, 09:20 AM
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#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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12-19-2015, 09:25 AM
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#14
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Join Date: Sep 2006
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Quote:
Originally Posted by RunningBum
I'm also retired and have a negative cash flow.
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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.
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12-19-2015, 09:45 AM
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#15
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Quote:
Originally Posted by RunningBum
I'm also retired and have a negative cash flow.
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I love that concept !!
I'm depleting my savings (all gone in about 60 yrs)
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12-19-2015, 09:50 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
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Quote:
Originally Posted by Corporateburnout
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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I don't think you read what I wrote very closely.
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12-19-2015, 11:13 AM
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#17
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Quote:
Originally Posted by RunningBum
I don't think you read what I wrote very closely.
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Got it. I'm a little slow this morning
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12-19-2015, 11:18 AM
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#18
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Quote:
Originally Posted by Senator
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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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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12-19-2015, 11:20 AM
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#19
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Quote:
Originally Posted by 6miths
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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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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12-19-2015, 11:33 AM
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#20
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Join Date: Apr 2012
Location: Nashville
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Quote:
Originally Posted by Corporateburnout
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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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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