Another money mismanagement story by a professional athlete

[Bigdawg]

this article could just as easily be about a megacorp exec who blew it all. I have a guy (just turned 65) working for me who has a military (E-8) pension, makes about 90K, has a wife that has always worked making about 30K and they live pay check to pay check. In every group there are people on both ends of the financial spectrum.

[Corporateburnout]

Quote:

Originally Posted by Bigdawg this article could just as easily be about a megacorp exec who blew it all. I have a guy (just turned 65) working for me who has a military (E-8) pension, makes about 90K, has a wife that has always worked making about 30K and they live pay check to pay check. In every group there are people on both ends of the financial spectrum.

Or about all the mega millions lottery winners who went bankrupt a few years after they won the big prize. Poor money management is not just for young athletes but it's a society wide issue.

[Car-Guy]

Amazing to me that anyone can lose that much money in such a short time but you read about it all the time and it's not just in sports, as has been pointed out already.

Everytime I read about one of these I think about John McAfee (McAfee Virus Software) and read up on his current activities. Here is an "educated" guy that was worth about 100 million before the 2007 market crisis. Lost all but 2 to 4 million (maybe less) depending on what source you read. At some point, he moved to Central America and got into all sorts of trouble. He finally came back to the US and is now running for president under the newly formed Cyber Party.

[zinger1457]

The NFLPA did try to help players but it hasn't turned out well. The financial advisers they recommended to players have swindled over $100M from NFL players.

NFLPA financial advisor program fatally flawed | National Football Post

[marko]

Then you see a guy like Rob Gronkowski who's socking away all his pay and living off his endorsements. Family keeps him on a tight financial leash. He'll be set for life.

I think the basic problem is so few in this country are taught any financial literacy...it's almost deliberately avoided in the school system.

[grasshopper]

i see another victim here.

[Hermit]

Quote:

Originally Posted by marko Then you see a guy like Rob Gronkowski who's socking away all his pay and living off his endorsements. Family keeps him on a tight financial leash. He'll be set for life. I think the basic problem is so few in this country are taught any financial literacy...it's almost deliberately avoided in the school system.

If this is so, how come I have a daughter that is very frugal and quite conservative with her money and a son that spends any money he has? They are a year apart and went to the same schools. BTW, he is very bright, outstanding at math, etc. Knowing something and doing something about it are not necessarily the same.

[Music Lover]

Quote:

Originally Posted by Hermit If this is so, how come I have a daughter that is very frugal and quite conservative with her money and a son that spends any money he has? They are a year apart and went to the same schools. BTW, he is very bright, outstanding at math, etc. Knowing something and doing something about it are not necessarily the same.

Some people just like to spend and don't give serious thought to the long term consequences. My friend was deep in debt and barely hanging on due to a mortgage he couldn't afford. Then, out of the blue he got an offer for his house for way more than it was worth. To his credit, he took the offer and went from deep in debt with no hope of getting out of it to living in an apartment with $150k in the bank.

That was one month ago...so far he's dropped $20k on golf clubs, new furniture, electronics, etc. He's also looking to replace a perfectly good 2009 Toyota RAV with only 90,000 kilometres on it with a newer and "better" vehicle, which will be another $45k - $50k (less trade in value). He only has to work 4 more years to avoid a penalty on his pension, but he's also planning on retiring early and, therefore, will take a big penalty on his pension.

I expect that in a year he'll be down to $50k or less and retired, but will need to continue to draw from what's left of his savings to supplement his day to day living. When that runs out, he'll be living cheque to cheque again.

[easysurfer]

Always shocks me how athletes (Portis, Shilling and others) who made so much money can end up in bankruptcy. I suppose not much different than the curse of the lottery winners .

[mpeirce]

Quote:

Originally Posted by easysurfer Always shocks me how athletes (Portis, Shilling and others) who made so much money can end up in bankruptcy. I suppose not much different than the curse of the lottery winners .

In both of these cases, the skill or luck they exhibited doesn't correlate with financial know how at all. They are completely independent variables.

Actually, in the case of the lottery, possibly a negative correlation. Most financial savvy people don't buy lottery tickets.

[easysurfer]

Quote:

Originally Posted by mpeirce In both of these cases, the skill or luck they exhibited doesn't correlate with financial know how at all. They are completely independent variables. Actually, in the case of the lottery, possible a negative correlation. Most financial savvy people don't buy lottery tickets.

What each have in common is a riches to rags story. One way or another .

[ls99]

The pro's seem to go with Pul Simon's song, Kodachrome's first few lines

https://www.youtube.com/watch?v=pLsDxvAErTU

[potto0213]

Quote:

Originally Posted by Senator I wonder how much was spent on drugs, alcohol and hookers... The article does show gambling was a major problem.

Yes. And the rest was probably just wasted.

[youbet]

Quote:

Originally Posted by Senator I wonder how much was spent on drugs, alcohol and hookers... The article does show gambling was a major problem.

Most of it probably. At least it wasn't wasted.........

[Mulligan]

I bet he is really confused on who makes money off casinos....He lost big money gambling and lost money investing in them on the other side.. When you lose on both sides, gambling isn't your thing!
I am not in the this camp of "blaming others" "more education", etc... I have watched a symposium they give to newbies... They even bring in first hand accounts from players who blew their money... Some things don't have to be told but once. Also, how many times does it take to learn not to have protected sex.
Some people are hell bent on doing what they want to do. And the consequences come later.


Sent from my iPad using Tapatalk

[Skyward1]

I read this earlier and was wondering about him owing a million dollars to his mother and a former sideline reporter turned Entertainment Tonight reporter. Hopefully, he isn't trying to shield some of his assets from the four ladies "domestic support obligations".

[aja8888]

Mike Tyson went through over $400 million before he was broke. Of course he had helpers along the way.

[brucethebroker]

"I spent a lot of money on booze, birds [women] and fast cars – the rest I just squandered".
Former professional soccer player George Best who twice claimed bankruptcy after earning over $100 million from the 1960's through 1984.

At least he had a sense of humor....

[braumeister]

Conversely, I have a neighbor who is a professional athlete with a $multimillion salary. He lives in a modest home (obviously, since he's my neighbor), drives an old pickup, and lives a very modest lifestyle. So it would be wrong to assume most athletes have no money skills.

[marko]

I don't think it's limited to athletes.

We all know some people/neighbors who make good money but spend $2 for ever dollar they make. Or those who've gone down the drain having over-bought on their lifestyle.

We have one friend who makes close to $1MM a year but his cable/electricity/phone is always getting turned off; he runs around robbing Peter to pay Paul.