Broke NFL / NBA players after retirement

[jim584672]

I was watching Netflix and ran across a movie called Broke. It shows how these multi-million dollar athletes end up broke after they retire.

Proves it is not what you make, it is what you spend, that makes the difference in retirement.

[Hermit]

Quote:

Originally Posted by jim584672 I was watching Netflix and ran across a movie called Broke. It shows how these multi-million dollar athletes end up broke after they retire. Proves it is not what you make, it is what you spend, that makes the difference in retirement.

Hmmm. So you think that is why John Elway is still working?

[Senator]

These guys are used to spending large, and they generally retire super-young (under 40), so even multi-millions goes fast.

And we are not talking rocket scientists here, it's athletes (or rock stars, or movie stars, or TV stars, or boxers, etc. Every one is trying to 'help' them, and they are pretty gullible.

Even Michael Jackson, with all his millions, was broke.

[aaronc879]

Quote:

Originally Posted by Senator Even Michael Jackson, with all his millions, was broke.

He was no where near broke. He MAY have been cash poor(relatively speaking) but his net worth was in the hundreds of millions-at least.

[FANOFJESUS]

Quote:

Originally Posted by aaronc879 He was no where near broke. He MAY have been cash poor(relatively speaking) but his net worth was in the hundreds of millions-at least.

I remember reading he was very deep in debt. It was buying the rights to Beatles songs I think that was what kept him above water. That ended up to be a very good investment. Here he is gets good starting minute 2

https://www.youtube.com/watch?v=4_wxX179dIA

[zinger1457]

I read somewhere that 60% of NBA players file for bankruptcy within 5 years of retiring from the NBA.

Here's one that seems to have gotten it right!
Why Is One Of The NBA's All-Time Greatest Scorers Refereeing JV Games?

[aaronc879]

Quote:

Originally Posted by rec7 I remember reading he was very deep in debt. It was buying the rights to Beatles songs I think that was what kept him above water. That ended up to be a very good investment.

I think I read that his debt at death was $300-something million. However, just the Beatles catalog alone is worth $1-1.5 Billion and Micheal owned 50% of it.

[haha]

Quote:

Originally Posted by jim584672 I was watching Netflix and ran across a movie called Broke. It shows how these multi-million dollar athletes end up broke after they retire. Proves it is not what you make, it is what you spend, that makes the difference in retirement.

It doesn't prove this at all. It does prove that a given person can make a very large living, and waste it all.

Ha

[Car-Guy]

I read recently (in Sports Illustrated I think) that ~78% of NFL players are broke or nearly broke within two years after they retire. "Might" have helped if they would have joined this forum before retiring

Here's another interesting article on the topic - Broke and broken. How the NFL leaves players broken — and broke | New York Post

[Mulligan]

Wasting money is a big problem, but "spreading the seed" too much, and ill advised investments also are a big problem. Some of them need people like Allen Iverson had watching over him like I have read. He is "broke" and cash flow poor now, but an advisor set up a "reebok trust fund" long ago (shoe deal) that he cannot touch the $32 million dollar principal until he is 55. Maybe by then he will be able to handle those funds and make it last the rest of his life.
Going the opposite way financially....the richest NFL player of all time?.... Roger Staubach, worth close to $700 million. Only pennies on those dollars came from his NFL career though. While most were partying it up he was focusing on his second career while still playing.


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[FUEGO]

We just watched "Broke" too. Short careers (average 3 years for NFL?), not everyone is making big bucks but you have to keep up with the Joneses that do make big bucks. Entourages are expensive. You suddenly gain new family and many new friends that expect you to support them financially. Little history of money management skills or smart family wealth management.

Overall the show left me with a sad feeling for these folks that come into million dollar contracts but lose it all (and then some). At Thanksgiving, I was talking to my 2 BILs about coming into millions (from a sports contract or winning the lottery). I told them if you get a few million net of taxes, you'll be pretty much set for life if you manage it carefully and don't spend more than 3-4% of principal per year. They both agreed with me, then admitted they would probably blow it all at a casino, or spend it in a year long binge in the Caribbean or something similar.

[ERhoosier]

To paraphrase W.C. Fields (?)-

"I spent most all my money on booze, loose women, and gambling....the rest I just wasted"

[yakers]

Good story but a bit too long and not great background soundtrack. I suppose the same story would apply in the entertainment field. I figure the Jersey Boys probably had $1B flow through them between records, concerts & royalties and AKAIK none of it 'stuck' to them.

[Car-Guy]

Quote:

Originally Posted by ERhoosier To paraphrase W.C. Fields (?)- "I spend most all my money on booze, loose women, and gambling....the rest I just wasted"

Makes me wonder if I'm related to him somewhere along the line. I guess I'll check it out on ancestry.com

[FANOFJESUS]

Quote:

Originally Posted by aaronc879 I think I read that his debt at death was $300-something million. However, just the Beatles catalog alone is worth $1-1.5 Billion and Micheal owned 50% of it.

Ok that is good but as you can see he was no stranger to spending big money. I think he would have gotten in trouble spending money very easy but in his case his talent out did his spending. Maybe without the Beatles catalog it would have been a different story.

[Walt34]

The sad trend continues, here's another one:

Quote:

Poor Allen Iverson: the 11-time NBA All-Star, who earned over $154 million during his 15-season career, is reportedly in deep financial trouble. How did one of the top players in the NBA burn through so much of his fortune in such a short time?

Allen Iverson Goes Broke: 3 Timeless Money Lessons for You

[Big_Hitter]

the DB plan probably had a lump sum option...

[easysurfer]

Quote:

Originally Posted by Walt34 The sad trend continues, here's another one: Allen Iverson Goes Broke: 3 Timeless Money Lessons for You

Iverson was on the morning news the other day saying that how things are portrayed of him on the media isn't totally accurate. He didn't much about his finances, other they saying that he isn't broke.


Here's the interview if you want to see that:

NBA great Allen Iverson on new documentary and legacy - Videos - CBS News

[easysurfer]

Quote:

Originally Posted by jim584672 I was watching Netflix and ran across a movie called Broke. It shows how these multi-million dollar athletes end up broke after they retire. Proves it is not what you make, it is what you spend, that makes the difference in retirement.

Curt Shilling is another example too. In his case, not so much like him throwing wild parties, but that he put his fortune from playing days into his video game company that went belly up.

[bclover]

Many NBA teams are now trying to work with young athletes.


Remember guys a lot of these kids and they are just that, young adults at best are coming from crazy backgrounds.


case in point. Ok, I grew up in Harlem, thankfully I had parents who knew education was the best way to get out of the ghetto. but no one really taught me about living within my means. Heck, what means, we were broke. lot's of love, no money.


So I still remember when I got my first job working as a summer camp counselor and I got a check for 300 bucks, I went hog wild. It was the first time I had, what I thought was a boatload of money.


Now I can't even imagine if you threw a couple of million bucks at me. Oy Vey!!
Not to mention they usually have families that are seeing that person at the ticket out.


lastly, also remember that Allen was pretty much the superstar on the sixers but everyone else on the time is not bring in the dough he was.