Why do so many NFL players go bankrupt?

[SirClintonPortis]

Originally Posted by Schneed10

This is a great point, ignorant is a good word.

Despite my finance background, I'm even ignorant of the best way to manage $100M. Difference is, I'm smart enough to know that I need to learn more about it before I go giving any money to people.

Once again, you're being "smart" is simply being more knowledgeable and aware.

[Schneed10]

Originally Posted by SirClintonPortis

Once again, you're being "smart" is simply being more knowledgeable and aware.

Not really. Like I said way earlier in the thread, it's simple math. Most of these guys didn't lose money because they gave it to the wrong people. Most of them lost it because they just flat out spent it all.

I have X, I spend Y per month... it's easy to figure out how long until you'll run out of money.

[Mc2guy]

Originally Posted by Schneed10

Not really.

Hubris is the downfall of many a man. Keep thinking its all about how "smart" you are. Until you've walked in another man's shoes, it's all conjecture.

[Giantone]

Originally Posted by Schneed10

This is a great point, ignorant is a good word.

Despite my finance background, I'm even ignorant of the best way to manage $100M. Difference is, I'm smart enough to know that I need to learn more about it before I go giving any money to people.

One would hope so but you keep forgeting the fact that some (not all)did the right thing,they went to professionals ,they sought advice,they diversified their holdings and still lost it and you call them dumb.Just read the paper and look at how Goldman-Sachs is behaving and you want to go to Wall St. and smack them all in the mouth.

[53Fan]

Originally Posted by Giantone

One would hope so but you keep forgeting the fact that some (not all)did the right thing,they went to professionals ,they sought advice,they diversified their holdings and still lost it and you call them dumb.Just read the paper and look at how Goldman-Sachs is behaving and you want to go to Wall St. and smack them all in the mouth.

Ain't that the truth!

[Schneed10]

Originally Posted by Giantone

One would hope so but you keep forgeting the fact that some (not all)did the right thing,they went to professionals ,they sought advice,they diversified their holdings and still lost it and you call them dumb.Just read the paper and look at how Goldman-Sachs is behaving and you want to go to Wall St. and smack them all in the mouth.

How could somebody lose all their money by diversifying their holdings? That's just not possible.

Even in the stock market crash that just occurred, the market went down 40-50%. So dudes would have lost half their money, not all of it.

The only way they could have lost it all through investing was to put too many eggs in one basket, or otherwise take unnecessary risks with their money. Such as investing in a business venture, handing your money over to a Madoff type, etc. Which comes back to giving too much money to the wrong people.

I get it. Some of these athletes were victims of predatory attempts to suck money out of them under the premise that returns would be great. But once you're rich, why even bother investing aggressively from there? Why do multimillionaires need to hit it big on other business opportunities?

Greed. And greed is foolish.

[Giantone]

Originally Posted by Schneed10

How could somebody lose all their money by diversifying their holdings? That's just not possible.

.

To think that can't happen now that's ignorant.

You're just like a Monday morning QB easy to throw stones after it's done.Sallie Ma,Fannie Ma,AIG,Merril,GM,Toyota.....how many banks have failed,real estate dropping like a rock,and again I bring up Goldman Sachs and Bernie Madoff(plus many more),you take all that and then add in the collateral fallout from those companies going down or under?

[Giantone]

Originally Posted by Schneed10

I get it. Some of these athletes were victims of predatory attempts to suck money out of them under the premise that returns would be great. But once you're rich, why even bother investing aggressively from there? Why do multimillionaires need to hit it big on other business opportunities?

Greed. And greed is foolish.

Ahh, no you don't becuase if you did you wouldn't ask a question (questions) like that.

[53Fan]

I've always based intelligence on the level of one's ability to learn, not how much you know. Everyone knows more about something then someone else. If only from education in that particular area or experience.

[Kalisto2010]

Here's the problem with most pro athletes. Once they retire, they're to spoiled to re-adjust their lifestyles. They continue to live as if they were still being paid millions of dollars per year.

[JLee9718]

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.

[Kalisto2010]

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.

[53Fan]

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.

[tootergray34]

you should ask Deon Sanders...well he's working now...but he certainly spent his money QUICK!!!

You should check out tracy mcgrady...he's actually invested real well i've heard...but yeah most people lost it b/c they've never had money before so when they get it..they spend it immediately.

it's just going from one lifestyle to the next...much like when rednecks win the lottery...it's gone before they know it and they have a mountain of garbage that they don't need.

[tryfuhl]

these guys don't balance checkbooks, their money is in other places than just checking and they have people to take care of it.. sometimes those people don't take care of it so well

when these guys pay things on credit or buy a house it's not always coming from one account... or having a lien on it

it's much diff than just balancing a checkbook