Why do athletes end up broke?

[AustinTXCat]

There was a documentary about how some pro athletes making big salaries go bust, some even become homeless. In a nutshell it's not having a plan. One guy signed a big multimillion dollar contract first thing bought a big house for momma, a big house for himself, brother, sister uncle likewise, cars, bling bling, at the time he was cut from the team a couple of years later he was paying on 7 mortgages. He declared bankruptcy.

The smart thing to do is hook up with an HONEST competent, certified financial planner and come up with a long term plan, develop a budget and live on it. You can have all the nice things you might want and still manager your finances so you won't wind up broke.

+1

I'm sorry to say it, but remember Antoine Walker? Here was a guy who averaged no less than double-digits for over 11 pro seasons. Won a title in 2006. He blew through at least, what, $108 million? Crazy.

Even a few coaches get burned. Billy Gillispie lost over $2.3 million over bad investments with David Salinas. Salinas later committed suicide after bilking Gillispie, Mark Few, Scott Drew and Lute Olsen, and others out of millions.

Aside from competent financial advisors, never ever put all your eggs in one basket.

 

[Nightwish84]

Everyone here is correct. Also, investing your new wealth and buying a modest (for a professional athlete) home simply doesn't sound fun. You automatically want to help out your boys and own the Tiger compound or the (at the time) New England Brady castle. It's like giving a kid $500 and telling him to go buy groceries. Don't be surprised if he walks out with several big bags filled with candy.

 

[UKGrad93]

It’s simple, these guys have no experience with earning, saving and managing money. Plus they are young enough that their brains aren’t even fully developed. For them, old age, retirement and consequences are far far off in the future.

 

[KyCatFan1]

Everyone has to keep up with the Joneses.