NFL player lives on $60K/yr

[RunningBum]

By being frugal financially, Ryan Broyles believes he has set up future - Detroit Lions Blog - ESPN

Ryan Broyles signed a $3.6M contract, over $1.4M guaranteed, in 2012, but he and his wife limit their budget to around $60K, and invests the rest. He wouldn't say just what he invests in, but he checks his investments daily on a cell phone app and maxes out his 401K, and laments that the S&P has been pretty flat this year.

He did "splurge" on a new Mazda and a house in the last year. No word on whether he got a mortgage or paid cash, and how that fits in his budget.

Too conservative? He only played in 5 games last year, and caught just 2 passes, so his NFL career might not last long, but he's set himself up very well no matter what happens. And while you might think his game suffers because he's complacent, he says his situation actually lets him focus more on getting better at football because he's not distracted about financial worries.

 

[Danmar]

Smart guy. Not many of his ilk in the NFL methinks.

 

[ExFlyBoy5]

Good story. We have a friend that lives in Texas and played for Green Bay for 3 seasons. His initial contract was really good, but got injured. He is in real estate now and thankfully, he's done very well with that because he readily admits he absolutely BLEW through the several million he made while playing for the NFL and his story is quite common.

 

[JoeWras]

Wow, that's awesome. Here's a guy who actually IS "doing what's best for my family."

Have you noticed athletes using that phrase? It seems to be a fad, maybe something they discuss at union meetings to improve the reputation of players in the public eye.

You know, they need the money "for their family." Not for gambling, not for the fancy cars, not for the club life...

 

[ziggy29]

Good for him! I know the NFL sponsors a seminar for rookies to teach them about responsibility, both socially and economically. I think this young man would be a great speaker for them.

 

[Walt34]

Good to hear of at least one doing it the right way. So now he's in a position to FIRE whenever he wants to. Or has to if he's injured.

 

[Senator]

I used to mow grass for a Minnesota Viking that played in the 70s. Even went to a super bowl.

He never made more than $40K a year as a starting player.

He played in the NFL as a safety for 10 years, and even went to the pro bowl. He was a starter in Super Bowl IV.

A motorcycle wreck on his way to training killed his NFL career.

 

[samclem]

That's great, and apparently rare. It just seems so obvious to me that if I made a lot of money in what might be a long or short career (sports star, singer of a hit song, jackpot patent, etc), that I'd live a frugal life at first just put the windfall into investments so that, no matter what, I could go on living that way for the rest of my life if the gravy train came to an end. And I think Broyles is right--doing so lets him avoid distractions and concentrate on his game.

 

[pb4uski]

Well, if his football career doesn't pan out, he may have a bright future as a financial manager to his peers in the NFL.

 

[rayinpenn]

There is ample evidence in professional sports that it isn't how much you make it is how much you manage to hold onto...
Any nfl player that limits his spending to 60k a year has it figured out...good for them!


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[aaronc879]

It's a good thing he is keeping his spending at a reasonable level. Based on his injuries and lack of production on the field, his first contract will likely be his last. He will earn a total of $3,678,500 in his career. After paying his agent and Uncle Sam he will be lucky to have $2MM. $60,000/yr may actually be a little spendy for him if he wants to not have to work after he's done with football.

 

[JoeWras]

Well, if his football career doesn't pan out, he may have a bright future as a financial manager to his peers in the NFL.

This actually has happened.

Jesse Boulerice is doing exactly that here in Raleigh, NC. His career as an NHL (major league ice hockey) "tough guy" didn't pay as well as the stars, so he was careful with money. Meanwhile, he knows the problems professional athletes deal with and has a few as clients. This was according to a recent news article about him which I can't find right now.

I know this board dumps on FAs, but here Jesse deals with the unique numbers of the earnings of these high profile people. I remember in the article him talking about what aaronc879 mentioned, and how high profile clients with short careers need to know their numbers and consider their futures.

 

[Free To Canoe]

Many express the stereotype that professional athletes are dumb. Here is one that made a pretty savvy deal.

With that information in mind, you might be surprised to learn that for the 2015 season, the Mets will be paying Bobby Bonilla more than double Matt Harvey's salary. Bobby will earn $1.2 million from the Mets this year, while Matt will earn $614,000. Technically speaking, AARP-member Bobby is the 12th highest paid player on the Mets right now.

Bobby Bonilla Is One Of Highest Paid Players On The Mets Roster This Season. He's 52 Years Old And Retired In 2001. | Celebrity Net Worth

 

[kcowan]

Professional athletes, rock stars, and movie/TV actors all share the same earnings profile.

It would be a huge FA opportunity to do it honestly. Sadly there are many dishonest people already doing it to them.

 

[REWahoo]

It would be a huge FA opportunity to do it honestly. Sadly there are many dishonest people already doing it to them.

So true...

Tim Duncan sues former business adviser for over $20 million in losses - SBNation.com

Duncan is the latest in a long list of NBA players to allegedly been taken advantage of by advisers.

 

[MichaelB]

So true...

Tim Duncan sues former business adviser for over $20 million in losses - SBNation.com

That is sad.

 

[RunningBum]

Many express the stereotype that professional athletes are dumb. Here is one that made a pretty savvy deal.

Bobby Bonilla Is One Of Highest Paid Players On The Mets Roster This Season. He's 52 Years Old And Retired In 2001. | Celebrity Net Worth

Maybe. This article says it didn't actually work out that badly for the Mets, and Bonilla might have actually come out ahead with a lump sum payment.

The annual deferred payments to Bobby Bonilla actually worked out quite well for the Mets | For The Win

Then again, an annual payment is nice and safe, discourages blowing it all when younger, and the 8% rate mentioned would involve risk.

However, getting large contracts has as much to do with the players' agents, and the owners' foolishness, or maybe the foolishness of fans who pay so much for tickets and merchandise. I'm more impressed with stories of people who managed their windfall wisely like Broyles has, than those who just wrangled a huge windfall.

 

[frayne]

Smart guy. Not many of his ilk in the NFL methinks.

Agree. I wonder why all NFL or other sport franchises don't have CFPs to help these youngsters manage their money and plan for the future. It is amazing how many are broke by the time they are 30. I would venture to say 99% of 21 year olds knocking down millions have no idea about how to manage their funds.

 

[HFWR]

Agree. I wonder why all NFL or other sport franchises don't have CFPs to help these youngsters manage their money and plan for the future. It is amazing how many are broke by the time they are 30. I would venture to say 99% of 21 year olds knocking down millions have no idea about how to manage their funds.

And many have family, "friends", and a posse to "help" them spend...

 

[frayne]

And many have family, "friends", and a posse to "help" them spend...

And there in lies the problem.

 

[growing_older]

The leagues and the teams are addressing these issues and there are mandatory financial classes for all rookies in many sports. But the contracts are so big, there are so many "advisers" willing to help and many of the players are so young and inexperienced that they can place their trust in the wrong people. Young players have a hard time imagining that their careers can be cut short by injury, even if they have a history of injuries. What they see is $X millions burning a hole in their pocket and unlimited friends and family wanting handouts or peddling "investment" ideas.

Congrats to the few who wisely set themselves up for life by frugal money management, despite the large lifetime sums that can flow into their hands in just a few years.

 

[gcgang]

http://articles.chicagotribune.com/...806_1_athletes-nfl-player-financial-stability

Above article, from 2013, says 78% of NFL players face financial hardship within 2 years after their NFL careers are over.

Kudos to Broyles for LBYM.


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[mickeyd]

Great LBYM story. Thanks for posting.

Don't forget that Gronkowski (NE Pats) claims to have not spent any of the $16 million that he has been paid so far. Living off endorsement cash.