Why do so many NFL players go bankrupt?

Can you explain to me why it takes knowledge, or intelligence, or whatever to protect yourself from spending all your money??

Because my 3 year old is capable of looking in her piggy bank and counting how many quarters she has, and whether she has enough to buy a Dora doll.

That just it - many of these athelets never had to "look into their piggy bank". Money, women, things, grades - all were just provided to the truly elite atheletes. They never had to say "hmmm, how will I afford/obtain/earn these things?"

Way back in the day, I took a night class at UM on Soviet Foreign relations in the late 20th century. I didn't realize it but it was apparently a jock class for the UM football team (Rick Badanjek was in my class). During tests, the teacher left the room. Guys just handed answers to each other. A couple laughed when I refused the answers (yes - they accused me of being ignorant). One guy, nice enough, a third string receiver was telling me how he had a real cushy job (shhh!), and how he was going to be the next great pro WR. (Did I mention he had a steel plate in his wrist and couldn't bend his hand fully?). These guys were being told they walked on water b/c of the atheletic ability and, as immature kids surrounded by people giving them things are want to do, believed in their entitlement.

That was over 20 years ago. I can only imagine how much worse it has gotten as more money and more fame are added to the mix. (Do you really think Ben Roeth's behavior is that much of an anomally in the world of sports? One name - Jeremy Stevens).

There are so many people who want to "join" the new and rich lifestyle they see tied to a player who gets a large bonus. The player can't say no to his old friends or any new ones who want to become part of his entourage. The money goes quickly if you're trying to live your life plus support these newfound friends.

it was just toasters.. if you're referring to the chris rock joke

They spinnin! They spinnin!

Can you explain to me why it takes knowledge, or intelligence, or whatever to protect yourself from spending all your money??

Because my 3 year old is capable of looking in her piggy bank and counting how many quarters she has, and whether she has enough to buy a Dora doll.
Because humans rarely are perfectly rational in how they behave and thus what appears self-evident to some people does not necessarily make it the norm. The pheonomenon appears prevalent enough to warrant serious attention.
Hyperbolic discounting - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Hyperbolic_discounting)

Considering that people like to run up debt on their credit cards and the like, it's safe to say that there's at least some biological influence on why they keep spending even if they know they won't balance their budget. Woefully irrational, but that's exactly why "knowledge" is needed to keep said influences in check. Not everyone's a Leopold Mozart who knows how to manage their money well with little outside help. Some are more like Wolfgang and prefer gratification over disciplined spending.

They spinnin! They spinnin!

Here ya go Shaq, go buy yourself a jumping car.....Bling Bling

In fact, according to the NFL Players Association, at least 78 players lost a total of more than $42 million between 1999 and 2002 because they trusted money to financial advisers with questionable backgrounds.

Just last May, Atlanta hedge fund manager Kirk Wright was convicted on 47 counts of fraud and money laundering in a scheme involving more than $150 million. His client list included at least eight NFL players; former safeties Blaine Bishop (who lost $4 million, according to court documents) and Steve Atwater (who lost $2.7 million) had recruited former Broncos stars Terrell Davis and Rod Smith to Wright's firm, unwittingly making them victims too. Soon after his conviction Wright committed suicide in prison.



Incredible.

Here ya go Shaq, go buy yourself a jumping car.....Bling Bling

Shaq allegedly has a mistress in every NBA city that he's set up with an allowance and place to live. That can't be good for his financial situation. It's funny how we complain about people who make a living playing sports but now when I look at them since yesterday I think man, that guys probably going to be broke in a few years.

Especially with inflation. For example Joe Namath made $400,000 back in the 60's. That comes out to around $2.2 million today but I find it hard to imagine that Namath was much of a saver. Ironically George Best who was featured in the 25 article was very similar to Joe Namath. First real celebrity athlete in England that loved women, or as he put it while showing up drunk on a late night talk show "I love to screw." He was also an alcoholic except unlike Namath, Best died before he could complete rehab.

Either way it's crazy. By the time I die the entry level salary for most jobs will probably be around $100,000.

Because humans rarely are perfectly rational in how they behave and thus what appears self-evident to some people does not necessarily make it the norm. The pheonomenon appears prevalent enough to warrant serious attention.
Hyperbolic discounting - Wikipedia, the free encyclopedia (http://en.wikipedia.org/wiki/Hyperbolic_discounting)

Considering that people like to run up debt on their credit cards and the like, it's safe to say that there's at least some biological influence on why they keep spending even if they know they won't balance their budget. Woefully irrational, but that's exactly why "knowledge" is needed to keep said influences in check. Not everyone's a Leopold Mozart who knows how to manage their money well with little outside help. Some are more like Wolfgang and prefer gratification over disciplined spending.

To me, that's just a long-winded way of saying these people are irrational. Which is by its nature, stupid.

You say tomato, I say moron.

Well like I said before, a lot has to do with misplaced trust. Because maybe your 3 year old daughter can look in her piggy bank. But maybe your 3 year old says to your 2 year old son (assuming you have one) "Look, this isn't my area of expertise but this what you get paid to do for lots of people. So look after my piggy bank for me" And then...the money's gone because your daughter made the mistake of trusting your son. Your daughter's fault? Probably. But is that idiocy or ignorance, or is it one and the same? Confucious once say "Real knowledge is to know the extent of one's ignorance."

Additonally, I suspect this 78% must include a lot of Marcus Mason type players. Granted, Mason I'm sure has made a pretty penny in his brief cup of coffee with the league, still he's not a multi-millonaire. Is he?

No guys like Mason don't make an exhorbitant salary, he'd be as well off as a lot of doctors. In the cases of misplaced trust, I guess that's better than pulling an MC Hammer and simply spending yourself into the ground. But still.

Just like you said, know what you know, and know your limits. Do your homework to make sure you don't make a huge mistake, don't just turn all your money over to one advisor. That goes for anybody. Just like you shouldn't put all your eggs in one Enron basket, you shouldn't keep all your money with one advisor. To me that seems like common sense, but I guess financial literacy in this country is so shoddy that it's not even considered common knowledge.

Quote:

In fact, according to the NFL Players Association, at least 78 players lost a total of more than $42 million between 1999 and 2002 because they trusted money to financial advisers with questionable backgrounds.

Just last May, Atlanta hedge fund manager Kirk Wright was convicted on 47 counts of fraud and money laundering in a scheme involving more than $150 million. His client list included at least eight NFL players; former safeties Blaine Bishop (who lost $4 million, according to court documents) and Steve Atwater (who lost $2.7 million) had recruited former Broncos stars Terrell Davis and Rod Smith to Wright's firm, unwittingly making them victims too. Soon after his conviction Wright committed suicide in prison.


Incredible.

White collar crime has become so prevelant in this country, thanks in large part to our political leaders, that this sort of behavior has become routine. It's hard to trust anyone anymore. You would be wise to do extra homework on to whom you trust your money.