Why do so many former NFL players go broke?

[NUance]

Why do so many former NFL players go broke?

By Mike Freeman | CBSSports.com National NFL Insider

 

And there is definitely something to say about personal responsibility. Terrell Owens made enough money during his NFL career for several lifetimes, yet he's broke due to poor investments and child-support payments. That's on Owens, and it's possible some of the above stories happened because of irresponsible choices as well.

 

Yet many of these situations feel like men who simply slipped through the cracks through no fault of their own, and in a league that has so much money, how is it that any former player can be on the verge of eviction or having their car repossessed?

 

Some of this again is about personal responsibility. Not all of those men are victims. Some of the pain is self-inflicted, but it remains an amazing thing to see, nonetheless. It's also a reminder of why players fight for every penny when they play.

 

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This never ceases to amaze me. A guy makes good money--a couple hundred thousand dollars per year, or more--for several years. But is flat broke a few years after hanging up the cleats.

[RedRedJarvisRedwine]

Taxes and family and cars and houses! Entourages and jewelry and women! Drugs and gambling and agents/publicists!

 

My point being... These guys going broke never surprises me!

[NUance]

The thing is, if some ordinary Joe won the lottery--say $400k per year for 5 years--he would sock some of it away. For leaner times.

 

A better example would be if some Joe won the lottery, say $400k per year to be paid for an undetermined (secret) number of years between 1 and 10. If the guy had no way of knowing when the gravy train would end, he would most likely sock even more money away. Since it could end at any time.

[VA Husker Fan]

There are a bunch of stories of ordinary Joe lottery winners that went broke too. I don't know what the % is, but it happens.

[Enhance]

It comes down to parenting, making good decisions and not being stupid with your money.

 

You look at a lot of these players and what do they do with their oodles of money? They buy huge diamond earrings, watches, nice suits, multiple expensive cars, huge houses with excess amounts of things, etc. Then, when the money stops pouring in, they have no way to afford their lavish lifestyle because they didn't work with it properly. A lot of NFL players came from poor backgrounds, relying almost exclusively on their athletic skills to make something of their lives. By extension, a lot of these guys just aren't very smart or didn't have parents to teach them how to properly handle money. It's sad, really.

 

Look at a guy like Warren Buffet (really smart, a businessman, not an athlete, I know), but they're (Buffet and athletes) comparable only in that of their lifestyles - Buffet has oodles of money, but still lives in his rather conservative home in Omaha with simple pleasures.

[MMAHusker]

It's not up to the NFL to make sure they don't go broke when they are gone from the league. Just like it's not up to my employer to make sure I don't go broke once I am done here. NFL players, even the lowest paid ones, make better money than most people. It's their responsibility to take care of it.

[Caven]

You never see stories like this about the NFL players from places like Iowa and Nebraska. There is something to be said for teaching them life lessons in addition to the football.

[NUance]

You never see stories like this about the NFL players from places like Iowa and Nebraska. There is something to be said for teaching them life lessons in addition to the football.

cue the LP comments. 3. 2. 1. GO!

 

 

 

 

 

Or did you mean raised in places like NE and IA?

[Enhance]

I honestly think it has a lot to do with upbringing - background, your parents' teachings, etc. People who grow up in better places, with better parents, will almost always be more successful than someone who grew up in a bad part of a city with a lot of violence and poor parenting.

 

I don't think state location is necessarily relevant. I'm sure an athlete from North Omaha might be less than careful with his money in comparison to an athlete who grew up in West Omaha.

[MLB 51]

Taxes and family and cars and houses! Entourages and jewelry and women! Drugs and gambling and agents/publicists!

 

My point being... These guys going broke never surprises me!

This. No one needs a $10 million house and 20 cars in the garage. Most don't think about the future. Although there are those who get screwed over by friends and even family.

[MLB 51]

I honestly think it has a lot to do with upbringing - background, your parents' teachings, etc. People who grow up in better places, with better parents, will almost always be more successful than someone who grew up in a bad part of a city with a lot of violence and poor parenting.

 

I don't think location is necessarily relevant. I'm sure an athlete from North Omaha might be less than careful with his money in comparison to an athlete who grew up in West Omaha.

I buy this as well.

[Caven]

I honestly think it has a lot to do with upbringing - background, your parents' teachings, etc. People who grow up in better places, with better parents, will almost always be more successful than someone who grew up in a bad part of a city with a lot of violence and poor parenting.

 

I don't think state location is necessarily relevant. I'm sure an athlete from North Omaha might be less than careful with his money in comparison to an athlete who grew up in West Omaha.

 

I wasn't referring to where they grew up - I was referring to the fact that some college coaches put a little more emphasis on personal responsibility and teaching life lessons in addition to the football. You do something stupid at Nebraska or Iowa you are likely going to be sititng out a game or two. This teaches them responsibility for their actions. You do something stupid at some places and it is swept under the rug because the football team needs you out there playing on Saturday. This teaches that they can do whatever the heck they want with no personal responsibility whatsoever. It does make a difference.

[okaive]

Look at Will Smith. When he was the Fresh Prince, he was broke in a couple of years. He said that it was due to buying multimillion dollar house, multi cars worth 6 figures each, and going to Europe for his clothes along with supporting his friends.

 

It happens to all types of society, not just the stars. Money gets to their heads, the wrong brokers knocks on their doors and several other things. Upbringing is a huge part of it. If you always spent money and were always paycheck to paycheck, why would that stop when you win a lotto or get the 6 to 7 figure salary. Remember the saying "the more money you make, the more bills you have". Unfortunately it is apart of the U.S. society. Thats why we have 1% and then the rest of us 99%.

[Joe_5700]

Look at Will Smith. When he was the Fresh Prince, he was broke in a couple of years. He said that it was due to buying multimillion dollar house, multi cars worth 6 figures each, and going to Europe for his clothes along with supporting his friends.

 

It happens to all types of society, not just the stars. Money gets to their heads, the wrong brokers knocks on their doors and several other things. Upbringing is a huge part of it. If you always spent money and were always paycheck to paycheck, why would that stop when you win a lotto or get the 6 to 7 figure salary. Remember the saying "the more money you make, the more bills you have". Unfortunately it is apart of the U.S. society. Thats why we have 1% and then the rest of us 99%.

 

The top 1% also pays for 40% of all taxes collected in this country. These millionare athletes never think that they will be out of a job. Most also lack parents who are good with finances.

[Lil' Red]

I think the NFL and other pro leagues should do something proactive to fight this like having some mandatory personal finance courses.