1 in 6 NFL Players Goes Bankrupt Within 12 Years of Retirement

[Smashcat]

Wall Street Journal þ@WSJ 3m3 minutes ago

1 in 6 NFL players goes bankrupt within 12 years of retirement: pic.twitter.com/MQBGZPvhof

 

[BlueRaider22]

There's a lot going on here.

-The average NFL salary in 2014 is $1.9 mil/yr.
-70% of NFL players are aged 22-28.
-And the average career length is 3.3 yrs.

So, the average NFL player will end his career at about the age of 27-28 having made $6.27 million........or guess-timating $4.25 million after taxes.

And we know that there are players who skew the average considerably one way or the other.

http://www.businessinsider.com/charts-expose-how-badly-nfl-players-get-paid-2013-9

 

[BlueRaider22]

If you are smart, you could absolutely retire comfortably off what the "average" guy makes. However, these guys are low to mid 20's when they are getting this money. Many have never really developed the discipline and knowledge to manage their finances properly. And they likely pattern their lives while they are playing as if they will always make $1.9 mil/yr.

1 and 6 doesn't really surprise me.

 

[Deeeefense]

There was a documentary about this I watched on NetFlix recently - its amazing how some of these guys just blow through money and some wind up poor, even in homeless shelters.

First you have to have a big house - there goes a mill or two, then momma needs a new home like she always dreamed of, then brother lost his job and can't pay the mortgage - bail him out. Then you need some fancy rides and some bling bling. If you don't have the bling bling you are not part of the club. Things go well for 3 or 4 years and then one day you sustain an injury that you never fully recover from, get cut when some hot rookie shows up to take your place and all of a sudden you're out on the streets with no income, nothing saved, and bills coming due. One guy was paying on 7 mortgages when he sustained a career ending injury.

All NFL teams should have mandatory financial consulting for rookies and ongoing for roster players and the union should support it.



This post was edited on 4/16 12:06 PM by Deeeefense

 

[BlueRaider22]

What's puzzling, is that just about every organization has at least 1.......if not more.....financial advisors on staff just for advice. For free. All the player has to do is walk through the door and listen. You can lead a horse to water.....

 

[hmt5000]

when your outgo is more than your income... you are gonna have trouble.

 

[DSmith21]

The biggest drain for a lot of these guys cash comes when their gold digging wives leave them once their playing days are over. There goes 1/2 of everything unless they were smart enough to get a pre-nup.

This post was edited on 4/16 1:44 PM by DSmith21

 

[UKwannabe]

Would be interested in the ethnic ratios of that statistic.

 

[C1180]

I find it hard to have pity for people that blow millions in a few short years having no thought of their future. I would bet the teams have all kinds of plans that would help these players if they would take advantage of them.

I had just an average job but took care of business and have a fairly comfortable retirement. These players have to be blowing the money on drugs, gambling, and predator women to blow that type money. Oh well "Good Time Charley Has Got The Blues" and likely deservedly so.

I will however give a little slack to those that came from very humble circumstances and that try to help their families instead of going the Good Time Charlie Route.

IMO those that didn't get a decent degree or no degree because they just couldn't wait to get to the NFL or NBA are going to be the saddest of the cases.

 

[vhcat70]

So how many people that didn't play in the NFL go bankrupt within 12 years of retirement? If one in 6 or more, what makes NFL players special? And what does this have to do with UK FB?

 

[TuckyFan]

This is why I think universities should take a real hard look at what they're doing. Let's go ahead and admit that people who go to college, do so to learn and improve their earning potential. Not all, but some are gifted enough for that to be in professional sports, which is a career path unlike any other. People who earn a job offer in that career have to be prepared for media interactions, public scrutiny, sudden wealth of extreme amounts--really, there are probably more, but you get the point.

So why don't universities have mandatory coursework for its athletes, giving them college credit, that will teach them how to be a professional athlete. Things like prenups and selecting counsel, investing and not getting fleeced, dealing with your public image and getting endorsements. Seriously, let's equip these folks for the jobs they go to college for. Give all the scrutiny that's necessary to ensure integrity of the work, given that it's probably exclusive to athletes, but let's fulfill the mission. If they want to be an engineer or doctor or scientist, don't waive that requirement in the least. But give them tools for what they are dreaming to be.

 

[optimus-blue]

think about it you make a good salary one year then bam you are cut in the spring and april 15th taxes are due. major problem!

 

[Spica Orbit]

Originally posted by hmt5000:
when your outgo is more than your income... you are gonna have trouble.

hmt5000, isn't it amazing that we worry about NFL & NBA players not showing fiscal restraint, yet we keep electing idiots to office who spend way, way, way more than is coming in.

Spica Orbit

 

[elwood_blue]

Originally posted by UKwannabe:
Would be interested in the ethnic ratios of that statistic.

Better watch out. You're in danger of being charged with a thought crime.

 

[sluggercatfan]

Originally posted by Smashcat:
Wall Street Journal þ@WSJ 3m3 minutes ago


1 in 6 NFL players goes bankrupt within 12 years of retirement: pic.twitter.com/MQBGZPvhof

Figure is much better than the 80% of NBA players are broke after 5 years of leaving the league

 

[sluggercatfan]

Originally posted by elwood_blue:

Originally posted by UKwannabe:
Would be interested in the ethnic ratios of that statistic.

Better watch out. You're in danger of being charged with a thought crime.

Don't know if it really matters what the makeup is , but is this a question that really needs to be asked...You can see right?

 

[BlueRaider22]

Originally posted by UKwannabe:
Would be interested in the ethnic ratios of that statistic.

I'd be more interested in the economic situations of the players' upbringing.
-For instance, I'd be willing to bet that a player who comes from a good middle-class, hard working family, who has taught him the value of a dollar......would, on average, do better than someone that comes from a very poor family/economic situation.

 

[hmt5000]

Originally posted by Spica Orbit:

Originally posted by hmt5000:
when your outgo is more than your income... you are gonna have trouble.

hmt5000, isn't it amazing that we worry about NFL & NBA players not showing fiscal restraint, yet we keep electing idiots to office who spend way, way, way more than is coming in.

Spica Orbit

and i know people who barely make it through winter without missing electric bills and asking for help with food that as soon as their tax return comes in they are off to florida or gatlinburgh for the week. there was a study a few years back about lottery winners, most were less happy after the win and over half were broke within 10 years.

you would have to say that it is a pretty common problem in this country that people are piss poor at managing money. lol