ESPN did a 30 for 30 called Broke about athletes living beyond their means, there was a SI feature on it as well.
Some other factors at work here. Most of these guys come from poorer backgrounds so they gotta support/help more members of their families than say an NHL player.
Also athletes get screwed in taxes since their earnings are pure salary and there is nothing they can do to avoid paying the full amount as a business owner or someone who derives their $ from capital gains can...
Then there is the fact if your 25 and make millions there is a decent chance your not gonna be as good at managing your finances as a 47 year old who makes millions.
I'm guessing RX doesn't mind all these Sterling threads. If they did they would be RRd and not 1 has yet.
I agree with you, just saying for this site/traffic there is a reason these threads going on and on. This board was dead before this thing broke.
Obviously acebb/akphi exchange in this thread is top 5 worst exchange in the history of mankind, no doubt.
Maybe I like to come to my favorite sports forum (the only one I frequent actually) and talk about the big stories in the world of sports, like the Sterling story. Maybe I like to hear some people's opinions on it without having to sort through 15 pages of acebb and akphidelt arguing about who is stupider and what is the meaning of the term liquidate.
It's not that it is inconvenient to pass over the thread, it's that we shouldn't HAVE to skip over anything for fear of running into a flame war worthy of an elementary school playground. It's that some of us enjoy this forum (or used to), and you idiots are ruining it. THAT is the problem, understand?
It's ridiculous. The funny thing is the two threads that are going back and forth are two of the 3 most viewed threads on the front page. I'm arguing in two threads. There are 48 other threads just on the front page that they can go to. Yet, these 2 threads are bringing the site down, lol. It's ridiculous.
And yes, they are extremely jealous and that is where this paycheck to paycheck business comes from to try to make it seem like they are homeless people just waiting for their next $100,000 check, lol.
I'll further clarify with an analogy. It's like I had a favorite corner bar where I liked to stop in and shoot the shit. Everyone got along and times were good. Then some stupid little fucks started coming in every day and butting into our conversations, getting in fights about nothing in particular.
Should I now start going to another bar? No, the regulars in the bar should band together and drive you stupid fucks away. That, or management (mods in this analogy)...but unfortunately the bar isn't doing so well lately so management is turning a blind eye. The problem there is all the regulars are going to be driven away, and when business picks back up again management is going to look around and realize there's nothing left but dumb fucks and their establishment has turned into a freak show.
Should I now start going to another bar? No, the regulars in the bar should band together and drive you stupid fucks away. That, or management (mods in this analogy)...but unfortunately the bar isn't doing so well lately so management is turning a blind eye. The problem there is all the regulars are going to be driven away, and when business picks back up again management is going to look around and realize there's nothing left but dumb fucks and their establishment has turned into a freak show.
Koby Bryant was prepared to set up a temporary loan company for the NBA players when they had that lockout a few years ago. That should give you a hint where some of these NBA players stand with their finances. The paycheck to paycheck thing may be a little over exaggerated, but I guarantee you a few weeks turning into months would be a REAL problem for many of these players.
Reasons why 60 percent of ex-NBA players go bankrupt few years after retirement
August 20, 2013 13:17·Views: 108
Eliminate credit card debt
The average professional athlete in the U.S. will make more in one season than most people make in their entire lives, however despite those staggering salaries, about 60 percent of NBA players file bankruptcy within five years of retirement.
The statistics were published by Jason Cimpl from Wyattresearch, in his article “Five Reasons Professional Athletes Go Broke”.
The list of NBA players who have gone broke is rather rich – it includes those, we used to cheer for, and once were on the top of their game. Until the lights went out.
Professional players who were (or are) broke include: Allen Iverson (deeply in debts, although made some $200 million during NBA career), Shawn Kemp (finances dismantled by child support – seven children by six women), Scottie Pippen (blew away $120 million with irresponsible and lackluster financial decisions), Charles Barkley (lost around $10 million on gambling), Jason Caffey (had 10 children from 8 women, arrested in 2007 after failing to pay child support, later filed for bankruptcy), Kenny Anderson (7 children from 5 women, after NBA was left broke, without college degree), Eddy Curry (in 2008, he was loaned $580,000 at an astronomical 85 percent interest rate, lost all his money shortly after), Derrick Coleman (ended up owing creditors $4.7 million after a series of poor real estate investments in Detroit), Antoine Walker (blow away $110 million, generosity & bad investments led to bankruptcy).
Let’s take a look at 5 possible reasons why the average athlete is destined to go (quickly) from fame to shame.
Cimpl goes on to say in further edited excerpts: If data from Mint.com is accurate, the average athlete is destined to go (quickly) from fame to shame. Here are five possible reasons why:
1 – Overspending
Scott Bercu, a financial accountant for professional athletes, believes this group spends like mad, and blows their savings too rapidly. He said, “They see their salaries as infinite, like it doesn’t end, like they can’t spend it all but if you get $5 million a year, by the time you get done paying your agent and taxes, you have $2 million left to spend.”
[jetpack_subscription_form]
2 – Career duration
The average career span in the NBA, MLB and NFL is 4.8, 5.6 and 3.5 years, respectively. The “shelf life” of athletes is tiny. Professionals in this industry have a small window to make their millions, and if they don’t they cannot survive on their savings for very long (even if they saved responsibly).
3 – A lack of finance knowledge
Ed Butowsky of Chapwood Capital Investment Management believes athletes don’t understand finances. He says the leagues try to help educate them, but the system doesn’t work well enough. Athletes see prominent people spending money, and they believe that their spending pattern should be the same. However, athletes fail to take into account that those prominent members have spent a lifetime learning about financial responsibility and budget strategies.
4 – Poor investment decisions
Also, according to Butowsky, athletes are targets for poor investment pitches. He said, “Chronic over-allocation into real estate and bad private equity is the number one problem in terms of a financial meltdown. I’ve never seen more people come to me about raising money for those kinds of deals than athletes.”
5 – Hangin’ with a bad crowd
Athletes often do try to be responsible with their savings. However, they pick the wrong financial advisors. The NFL Players Association claimed that 78 players lost a total of $42 million between 1999 and 2002 as a result of bad financial advisors. In fact, Bob Young – managing director for APEX Wealth Management – says athletes often don’t know who manages their savings. He said that he frequently asks players how they’re doing (financially), and they’ll often respond, “I have no idea. All the bills are paid by someone else.”
August 20, 2013 13:17·Views: 108
Eliminate credit card debt
The average professional athlete in the U.S. will make more in one season than most people make in their entire lives, however despite those staggering salaries, about 60 percent of NBA players file bankruptcy within five years of retirement.
The statistics were published by Jason Cimpl from Wyattresearch, in his article “Five Reasons Professional Athletes Go Broke”.
The list of NBA players who have gone broke is rather rich – it includes those, we used to cheer for, and once were on the top of their game. Until the lights went out.
Professional players who were (or are) broke include: Allen Iverson (deeply in debts, although made some $200 million during NBA career), Shawn Kemp (finances dismantled by child support – seven children by six women), Scottie Pippen (blew away $120 million with irresponsible and lackluster financial decisions), Charles Barkley (lost around $10 million on gambling), Jason Caffey (had 10 children from 8 women, arrested in 2007 after failing to pay child support, later filed for bankruptcy), Kenny Anderson (7 children from 5 women, after NBA was left broke, without college degree), Eddy Curry (in 2008, he was loaned $580,000 at an astronomical 85 percent interest rate, lost all his money shortly after), Derrick Coleman (ended up owing creditors $4.7 million after a series of poor real estate investments in Detroit), Antoine Walker (blow away $110 million, generosity & bad investments led to bankruptcy).
Let’s take a look at 5 possible reasons why the average athlete is destined to go (quickly) from fame to shame.
Cimpl goes on to say in further edited excerpts: If data from Mint.com is accurate, the average athlete is destined to go (quickly) from fame to shame. Here are five possible reasons why:
1 – Overspending
Scott Bercu, a financial accountant for professional athletes, believes this group spends like mad, and blows their savings too rapidly. He said, “They see their salaries as infinite, like it doesn’t end, like they can’t spend it all but if you get $5 million a year, by the time you get done paying your agent and taxes, you have $2 million left to spend.”
[jetpack_subscription_form]
2 – Career duration
The average career span in the NBA, MLB and NFL is 4.8, 5.6 and 3.5 years, respectively. The “shelf life” of athletes is tiny. Professionals in this industry have a small window to make their millions, and if they don’t they cannot survive on their savings for very long (even if they saved responsibly).
3 – A lack of finance knowledge
Ed Butowsky of Chapwood Capital Investment Management believes athletes don’t understand finances. He says the leagues try to help educate them, but the system doesn’t work well enough. Athletes see prominent people spending money, and they believe that their spending pattern should be the same. However, athletes fail to take into account that those prominent members have spent a lifetime learning about financial responsibility and budget strategies.
4 – Poor investment decisions
Also, according to Butowsky, athletes are targets for poor investment pitches. He said, “Chronic over-allocation into real estate and bad private equity is the number one problem in terms of a financial meltdown. I’ve never seen more people come to me about raising money for those kinds of deals than athletes.”
5 – Hangin’ with a bad crowd
Athletes often do try to be responsible with their savings. However, they pick the wrong financial advisors. The NFL Players Association claimed that 78 players lost a total of $42 million between 1999 and 2002 as a result of bad financial advisors. In fact, Bob Young – managing director for APEX Wealth Management – says athletes often don’t know who manages their savings. He said that he frequently asks players how they’re doing (financially), and they’ll often respond, “I have no idea. All the bills are paid by someone else.”
