https://www.foxbusiness.com/personal-finance/nfl-players-bankrupt-personal-finance



I personally think it is because they have no idea how to save and balance an income. Most of the players come from nothing and as soon as they get their first check they go spend it like they are Snoop Dog who has millions. The main take I get from the article is they want to blame others, and play the "it isn't my fault" card. Yes, yes it actually is your fault you blew threw all your money and saved zero.

Did you really need that diamond necklace? That new G-Wagon? The $5k strip club party?

AustinCountyAg said:

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https://www.foxbusiness.com/personal-finance/nfl-players-bankrupt-personal-finance



I personally think it is because they have no idea how to save and balance an income. Most of the players come from nothing and as soon as they get their first check they go spend it like they are Snoop Dog who has millions. The main take I get from the article is they want to blame others, and play the "it isn't my fault" card. Yes, yes it actually is your fault you blew threw all your money and saved zero.

Did you really need that diamond necklace? That new G-Wagon? The $5k strip club party?

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I think you were onto something and then went off the rails. I read very little 'blaming others' in that article.

When someone has been given very little life coping skills from adult role models and then don't manage that situation well, they deserve more sympathy than what you exhibit the last part of your statement.

I'm sure you could think of something that you have absolutely zero experience or education and were thrown into a situation where you had to use those non-existent skills, you might have a different take.

DannyDuberstein said:

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Not only were many of them not provided a good modeling to follow, they are actually surrounded by leeches. It ends up a combination of not knowing how to manage your finances + succumbing to the pressure of so-called family and friends that want a piece.

While it may only make a small dent, I'm of the opinion that Personal Finance should be a required year-long course in HS, as well as a required course for any college degree (maybe 2 courses). Talk about one of the most important topics that either institution could provide, yet it's just an elective some places and doesn't even exist in others. Our ISD offers "Dollars and Sense" in HS, and I've already made my 16 year old take it.

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Agree 1,000,000%

Iirc the nba has a rather successful program that all rookies have to go through which covers things personal finances.

DannyDuberstein said:

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Not only were many of them not provided a good modeling to follow, they are actually surrounded by leeches. It ends up a combination of not knowing how to manage your finances + succumbing to the pressure of so-called family and friends that want a piece.

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Let's also not forget that they've been pampered and (most likely) worshiped all their lives by people that are (most likely) using them for personal gain( family, friends, coaches, agents, etc). That doesn't prepare them at all for the end of sport.

It's truly a circle of jerks.

Watch the Hard Knocks episode where Carl Nassib tries to explain compounding interest (or the concept of interest at all) to the defensive linemen room. They reacted like interest was sorcery. Some if them DID NOT BELIEVE IN IT! They did not believe you could make money by putting your money in the bank and not spending it.

Peer pressure in the league contributes. You read about the OL going out to eat, running up a $100k tab, and making the rookies pay for it.

A lot of their salary is not guaranteed, and the average career might be 3 years. Really dumb.

Quote:

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They reacted like interest was sorcery.

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It kind of is - have you ever seen what kind of magic you can work with Finance!?

Noble07 said:

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Peer pressure in the league contributes. You read about the OL going out to eat, running up a $100k tab, and making the rookies pay for it.

A lot of their salary is not guaranteed, and the average career might be 3 years. Really dumb.

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But these are guys who have never failed at anything (sports related) to this point - they're just not geared to think that it will happen to them.

AustinCountyAg said:

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https://www.foxbusiness.com/personal-finance/nfl-players-bankrupt-personal-finance



I personally think it is because they have no idea how to save and balance an income. Most of the players come from nothing and as soon as they get their first check they go spend it like they are Snoop Dog who has millions. The main take I get from the article is they want to blame others, and play the "it isn't my fault" card. Yes, yes it actually is your fault you blew threw all your money and saved zero.

Did you really need that diamond necklace? That new G-Wagon? The $5k strip club party?

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Articles like this are meant to make nerds feel better about themselves.

Its always guys that could only dream about being a college or pro athlete, or the poon these elite athletes get thrown at them that want to "bask" in another mans bad fortune.

They are never going to be a millionaire, or have sex with strippers, IG models, and porn stars...so basking in another mans bankruptcy is a ploy to try and act like they are just as accomplished and happy as said athlete.

Here is a newsflash. Most of these athletes are not "broke". Being Bankrupt and truly being broke are two totally separate things.

Many affluent normal people use bankruptcy as a way to get rid of their massive debts and payoff creditors. The POTUS has done the same thing many times.

and a lot of these guys and professional athletes in general ignore the tax consequences.

if you make it to a second contract...go play for a team in Florida or Texas --- there are 5 NFL franchises in those states. Pick one that fits.

do not sign with a California team

Iirc, NFL players are only paid during the season and are taxed based on the cities in which they play. Meaning Cowboys players have to pay NY state and city taxes each time they play the Giants in NY, and so on.

Capital gains and interest in their investments are are a different story.

I'm not a CPA so I could be wrong.

I know Lamar Odom was paying for around 30 different phone bills every month. That's how you go broke.

CrottyKid said:

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Watch the Hard Knocks episode where Carl Nassib tries to explain compounding interest (or the concept of interest at all) to the defensive linemen room. They reacted like interest was sorcery. Some if them DID NOT BELIEVE IN IT! They did not believe you could make money by putting your money in the bank and not spending it.

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I've thought of this since watching that, and I've tried to think about what I would suggest, because if I remember, Nassib was suggesting 10% interest if putting it in the bank, which I don't think is realistic, but I'm not sure what I would suggest.


Maybe wrong forum, but what would people suggest if you were talking to a group of pro athlete for where to invest it themselves (and not talking to them about where NOT to invest or spend it)?

My first thought was several Vanguard Index funds.

W said:

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and a lot of these guys and professional athletes in general ignore the tax consequences.

if you make it to a second contract...go play for a team in Florida or Texas --- there are 5 NFL franchises in those states. Pick one that fits.

do not sign with a California team

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I think it is because of their agents and ego. If an agent gets paid based on total contract, they'd direct them to the most money, not the best tax situation.


Also, you would think AFC South teams would try to sell this: Texas, Florida, Tennessee have no state income tax, and that is where at least 6 of your games will be (although, I don't know the jock tax situation for those states, except I think Tennessee's was repealed).

I don't recall him saying specifically put in a bank. I think he was just demonstrating the power of saving it and earning a reasonable return vs. blowing it. He didnt really get into specific investment vehicles; it was simply a lesson on how much $$$ it can grow into as long as you don't blow it on actual vehicles.

94DallasAG said:

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Iirc, NFL players are only paid during the season and are taxed based on the cities in which they play. Meaning Cowboys players have to pay NY state and city taxes each time they play the Giants in NY, and so on.

Capital gains and interest in their investments are are a different story.

I'm not a CPA so I could be wrong.

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Just like MLB...check out Andrew McCutchen's pay stub...

Most people in this country aren't fiscally responsible, whether they play in the NFL or work any other job. Most people have no savings or investment strategy. We all work with people at a similar income level that live in bigger houses and drive nicer cars with close to no savings and might not even contribute to their 401k. People should not use NFL players going broke to feel better about themselves, your neighbors and family members are possibly broke too.

It should be a requirement that everyone take personal finance in high school. My parents definitely made me understand at an early age how important that is, and I've saved since I've been out of school. In my line of work I see a lot of what people spend on cars vs earn and in my opinion there should be legal restrictions on income for how much you can finance a car for because people are irresponsible. People will pay as much on their car payment as mortgage or rent, they'll roll negative equity into a new loan because they have to have the newest thing on the road while other people drive cars that are paid off.

If you don't have a knowledge base to teach your kids this subject then the kid is at a disadvantage. I'd love to be in a nicer house or vehicle, but need vs want is in the forefront of my mind and I focus on retirement more than anything, and what if...scares the **** out of me.

One of the smarter things I read was about an athlete that established an irrevocable trust with $10-$20MM in funding so there was this sum of money always generating income for life just in case, because he could never spend that sum of money.

Sorry...not sorry, I don't give two cares what these guys do or don't do off the field, and neither should you. Is it a real societal problem if Dak or OBJ doesn't have a solid retirement? Why do you care about their politics or finances? Whether they spend their money on G wagons, chains, at the skrip club, or if they invest every check in Apple and Tesla - we shouldn't care.

Max Power said:

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Most people in this country aren't fiscally responsible, whether they play in the NFL or work any other job. Most people have no savings or investment strategy. We all work with people at a similar income level that live in bigger houses and drive nicer cars with close to no savings and might not even contribute to their 401k. People should not use NFL players going broke to feel better about themselves, your neighbors and family members are possibly broke too.

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This x1000.

Athletes going bankrupt or not managing their finances well is an American problem. It is not limited to athletes.
There are people of all walks of life who live way outside their financial means.

That is correct.

dlance said:

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94DallasAG said:

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Iirc, NFL players are only paid during the season and are taxed based on the cities in which they play. Meaning Cowboys players have to pay NY state and city taxes each time they play the Giants in NY, and so on.


Capital gains and interest in their investments are are a different story.



I'm not a CPA so I could be wrong.

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Just like MLB...check out Andrew McCutchen's pay stub...

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Pittsburgh professional athlete fee is a big pile of horse*****!!!