Friday, 21 August 2009

Chapter 11: For Athletes?!!?!?!??!

Professional athletes are not usually known for their financial prowess. So it may come as a suprise to hear that Dave Bing founded a successful steel company or Joe Montana is a partner in a successful hedge fund. The real statistics may shock you. Here are some excerpts from an article I came across:

"Similar to lottery winners, with no financial prowess or discipline, most pro athletes go completely broke in less than 10 years after retirement. In fact, 60% of retired basketball players go broke in 5, and 78% of football players in 2! Athletes are forced to sell their homes, sell their championship rings, and file for bankruptcy."

"When a 22-year old is suddenly getting pay checks in the ballpark of $500,000 every two weeks, the idea of remaining somewhat conservative while planning for the future seems ludicrous. They find themselves purchasing $10 million dollar homes, 10 cars of at least $125,000 apiece, fancy restaurants and all-night parties, not to mention the drugs, the alcohol, and the gambling that is often associated with some of these rich celebrities. They fail to realize that once the income stops, the monthly payments don’t."

"Between 60-80% of professional athlete marriages end in divorce."

"Children: NFL’s Travis Henry: 9 women, 9 children. At roughly $3000 a pop, his monthly child support payments are equivalent to what some people earn in a year."

Check out the article. It is a interesting 5 minute read. People's comments to the article are hilarious.


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