TradePlacer.com - Gold, Silver, Wine Trading

Login

Password

Forgot Password?
 
  Majority of NFL, MLB & NBA Players Go Bankrupt Within 5 Years! Here's Why (70.8K Reads & Counting!)  
  Lorimer Wilson on 2018-12-31 14:20:20.0
 
 

"The average professional athlete in the U.S. will make more in one season than most Bankruptcyof us earn in our entire lives….[yet,] despite those staggering salaries, 78% of NFL players, 60% of NBA players and a very large percentage of MLB players (4x that of the average U.S. citizen) file bankruptcy within five years of retirement."

Prepared by Lorimer Wilson, editor of munKNEE.com ? Your KEY To Making Money!

[This article of edited excerpts* (492 words) from the original article (827 words) by Chris Preston provides you with a 40% FASTER - and EASIER - read. Please note: This complete paragraph, and a link back to the original article, must be included in any article re-posting to avoid copyright infringement.]

"[Let's take a look at] 5 possible reasons why the average athlete is destined to go (quickly) from fame to shame. (Data from Mint.com)

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.?

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.?

A few quick thoughts of my own

[It is very disconcerting] if the NFL and NBA data is correct. That's a high rate of bankruptcy, and the leagues should provide better guidance for its athletes….[Unfortunately,] professional athletes are easy targets. They are highly visible, have lots of money and limited experience.

…Before pointing the finger at athletes, it may be wise to step into their shoes (cleats) for a minute … maybe their financial woes aren't entirely their fault or a result of reckless spending."

(*The author's views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.)

Scroll to very bottom of page & add your comments on this article. We want to share what you have to say!

Want your very own financial site? munKNEE.com is being GIVEN away - Check it out!

A note from Lorimer Wilson, owner/editor of munKNEE.com - Your KEY to Making Money!:
"Illness necessitates that I spend less time on this unique & successful site so:
  1. if you're interested in exploring the opportunity of taking the site to the next level as associate editor/webmaster
  2. and being rewarded with full ownership ? at absolutely no cost to you ? at the end of the second year of involvement
  3. please indicate your interest in the Comment section below
  4. and I will get in touch with you."

For the latest ? and most informative ? financial articles sign up (in the top right corner) for your FREE bi-weekly Market Intelligence Report newsletter (see sample here).

If you enjoyed reading the above article please hit the "Like" button, and if you'd like to be notified of future articles, hit that "Follow" link.

The post Majority of NFL, MLB & NBA Players Go Bankrupt Within 5 Years! Here's Why (70.8K Reads & Counting!) appeared first on munKNEE.com.

 
 
Market Categories Search Symbol Trade Register Other Links FAQ Blog Editorials Charts Contact Us Terms Bookmark and Share Site Meter