Has Lockout Taught Players Better Money Management?
And after hearing that the NBA owners and players are no where near close to an agreement, it might be awhile before those guys get a paycheck too.
Normally when the average Joe loses their job they know money is going to be tight and they have to figure out a way to manage their money with no income coming in. But athletes are not the average Joe.
Some make millions of dollars a year and they spend it on mansions, cars, women and bottles of Ciroc. Granted, it is their money and they can spend it on whatever they want. But with no money coming in the bank right now I wonder if most of these athletes have finally learned how to manage and be smart with their money?
Two years ago, Pablo S. Torre wrote an article for Sports Illustrated on How (and Why) Athletes Go Broke. In this article, Torre did some research and found out that: “1) by the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce; 2) within five years of retirement, an estimated 60% of former NBA players are broke.”
It’s kind of astonishing to hear that a person who makes over $1 million a year for X years go broke after only two years.
But that’s what happens when athletes aren’t smart with their money. Although you can afford it, do you really need six cars in your driveway? Do you really need a 16 room, 15 ½ bathroom mansion when you’re the only person living in it?
But I digress.
Since the lockout started, I’ve heard stories of what NFL players are doing to save money. Like New York Jets safety Eric Smith.
The free agent, who has been in the league for six years, moved back in with his parents in Ohio. I know its tough for SOME men to go back to live with their parents. But with no money coming in you have to do what you have to do to keep money in your pockets.
I’ve also heard stories of some players who are still balling out of control despite not getting paid.
Like Eagles DeSean Jackson.
The arrogant wide receiver, that made $470,000 last year, spent $25,000 at a club and twitpic his receipt to impress whoever cares that he blows his money on liquor.
When I hear stories like that it doesn’t surprise me that 78 percent of NFL players go broke after retirement.
You have to be smart with your money no matter if you make $4 million a year, $400k a year or just $40,000 a year. Invest it. Save it. Just make better choices.
If not you’ll end up like Antoine Walker.