78% of retired NFL players are...... (1 Viewer)

[Ron_Mexico]

Excess, bad investments turn athletes broke

Posted: March 23, 2009

Sporting News staff reports

Seventy-eight percent of former NFL players are bankrupt or under financial stress within two years of retirement, and 60 percent of former NBA players are broke within five years of retirement, according to a Sports Illustrated story detailing the extravagant spending habits of professional athletes.

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

But the biggest drain on athletes' money is poor investments, says Ed Butowsky, a wealth manager who advises athletes. "Chronic overallocation into real estate and bad private equity is the Number 1 problem [for athletes] in terms of a financial meltdown," Butowsky told Sports Illustrated.

According to the story, former NFL wide receiver Raghib Ismail lost money he invested in a theme restaurant, a record label, a religious movie, a cosmetics procedure, a phone-card-dispensing system and three calligraphy shops.

Michael Vick filed for Chapter 11 bankruptcy last July partly because he owes $6 million in bank loans he used to invest in an Indiana car-rental franchise, Canadian real estate and a wine shop in Georgia, according to the report.

Divorces and child support don't help, either. Athletes and agents estimate that the divorce rate for pro athletes is between 60 and 80 percent, according to the story. Furthermore, a celebrity divorce lawyer told Sports Illustrated that athletes obtain prenuptial agreements at rates appreciably less frequent than non-athletes at the same financial level.

As for family planning (or lack thereof), ex-NBA player Shawn Kemp and NFL free agent Travis Henry are among the athletes whose fortunes have been drained by five-figure monthly child-support obligations.

http://www.sportingnews.com/yourturn/viewtopic.php?t=530674

 

[3nOut]

Excess, bad investments turn athletes broke

Posted: March 23, 2009

Sporting News staff reports

Seventy-eight percent of former NFL players are bankrupt or under financial stress within two years of retirement, and 60 percent of former NBA players are broke within five years of retirement, according to a Sports Illustrated story detailing the extravagant spending habits of professional athletes.

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

But the biggest drain on athletes' money is poor investments, says Ed Butowsky, a wealth manager who advises athletes. "Chronic overallocation into real estate and bad private equity is the Number 1 problem [for athletes] in terms of a financial meltdown," Butowsky told Sports Illustrated.

According to the story, former NFL wide receiver Raghib Ismail lost money he invested in a theme restaurant, a record label, a religious movie, a cosmetics procedure, a phone-card-dispensing system and three calligraphy shops.

Michael Vick filed for Chapter 11 bankruptcy last July partly because he owes $6 million in bank loans he used to invest in an Indiana car-rental franchise, Canadian real estate and a wine shop in Georgia, according to the report.

Divorces and child support don't help, either. Athletes and agents estimate that the divorce rate for pro athletes is between 60 and 80 percent, according to the story. Furthermore, a celebrity divorce lawyer told Sports Illustrated that athletes obtain prenuptial agreements at rates appreciably less frequent than non-athletes at the same financial level.

As for family planning (or lack thereof), ex-NBA player Shawn Kemp and NFL free agent Travis Henry are among the athletes whose fortunes have been drained by five-figure monthly child-support obligations.

http://www.sportingnews.com/yourturn/viewtopic.php?t=530674

Simply pathetic. In times when hard working people are struggling to make ends meet, this comes out? I don't can't feel sorry for them.

 

[Duke1948]

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

i guess some of the 875 grand goes to a mortgage payment but where the heck does the rest go......i would think it would be hard to spend that much every month. and 10,000 hanging out money!!!!stupidity reigns supreme.

 

[zed2283]

Excess, bad investments turn athletes broke

Posted: March 23, 2009

Sporting News staff reports

Seventy-eight percent of former NFL players are bankrupt or under financial stress within two years of retirement, and 60 percent of former NBA players are broke within five years of retirement, according to a Sports Illustrated story detailing the extravagant spending habits of professional athletes.

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

But the biggest drain on athletes' money is poor investments, says Ed Butowsky, a wealth manager who advises athletes. "Chronic overallocation into real estate and bad private equity is the Number 1 problem [for athletes] in terms of a financial meltdown," Butowsky told Sports Illustrated.

According to the story, former NFL wide receiver Raghib Ismail lost money he invested in a theme restaurant, a record label, a religious movie, a cosmetics procedure, a phone-card-dispensing system and three calligraphy shops.

Michael Vick filed for Chapter 11 bankruptcy last July partly because he owes $6 million in bank loans he used to invest in an Indiana car-rental franchise, Canadian real estate and a wine shop in Georgia, according to the report.

Divorces and child support don't help, either. Athletes and agents estimate that the divorce rate for pro athletes is between 60 and 80 percent, according to the story. Furthermore, a celebrity divorce lawyer told Sports Illustrated that athletes obtain prenuptial agreements at rates appreciably less frequent than non-athletes at the same financial level.

As for family planning (or lack thereof), ex-NBA player Shawn Kemp and NFL free agent Travis Henry are among the athletes whose fortunes have been drained by five-figure monthly child-support obligations.

http://www.sportingnews.com/yourturn/viewtopic.php?t=530674

Simply pathetic. In times when hard working people are struggling to make ends meet, this comes out? I don't can't feel sorry for them.

It's a good thing Obama is here to tax the rich so that these poor ex-players can be bailed out.

 

[fruity pebbles]

good. im glad they're broke

 

[habsfan]

The timing for this is probably not great given that taking "good" financial advice is probably not working out a whole lot better than "bad" financial advice.

It would be interesting to know the breakdown of who is managing their own money and who is not.

 

[Hoss_Cartwright]

Giving money to stupid people doesn't make them any less stupid.

 

[eefflrat]

Excess, bad investments turn athletes broke

Posted: March 23, 2009

Sporting News staff reports

Seventy-eight percent of former NFL players are bankrupt or under financial stress within two years of retirement, and 60 percent of former NBA players are broke within five years of retirement, according to a Sports Illustrated story detailing the extravagant spending habits of professional athletes.

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

But the biggest drain on athletes' money is poor investments, says Ed Butowsky, a wealth manager who advises athletes. "Chronic overallocation into real estate and bad private equity is the Number 1 problem [for athletes] in terms of a financial meltdown," Butowsky told Sports Illustrated.

According to the story, former NFL wide receiver Raghib Ismail lost money he invested in a theme restaurant, a record label, a religious movie, a cosmetics procedure, a phone-card-dispensing system and three calligraphy shops.

Michael Vick filed for Chapter 11 bankruptcy last July partly because he owes $6 million in bank loans he used to invest in an Indiana car-rental franchise, Canadian real estate and a wine shop in Georgia, according to the report.

Divorces and child support don't help, either. Athletes and agents estimate that the divorce rate for pro athletes is between 60 and 80 percent, according to the story. Furthermore, a celebrity divorce lawyer told Sports Illustrated that athletes obtain prenuptial agreements at rates appreciably less frequent than non-athletes at the same financial level.

As for family planning (or lack thereof), ex-NBA player Shawn Kemp and NFL free agent Travis Henry are among the athletes whose fortunes have been drained by five-figure monthly child-support obligations.

http://www.sportingnews.com/yourturn/viewtopic.php?t=530674

Simply pathetic. In times when hard working people are struggling to make ends meet, this comes out? I don't can't feel sorry for them.

It's a good thing Obama is here to tax the rich so that these poor ex-players can be bailed out.

well to be fair, these players are rich, and will be getting taxed hard, at least they pay taxes. Leave politics out of it, this is a FF board

 

[TheFanatic]

I gotta wonder what the percentage was say, a year ago. Or even better 3 years ago before the real estate market bailed? With the massive downturn of the economy I have to believe that the number of those bankrupt has gone up considerably over the history the NFL....

 

[Chicago Hooligan]

"three calligraphy shops" is blowing my mind.

 

[Phurfur]

Excess, bad investments turn athletes broke

Posted: March 23, 2009

Sporting News staff reports

Seventy-eight percent of former NFL players are bankrupt or under financial stress within two years of retirement, and 60 percent of former NBA players are broke within five years of retirement, according to a Sports Illustrated story detailing the extravagant spending habits of professional athletes.

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

But the biggest drain on athletes' money is poor investments, says Ed Butowsky, a wealth manager who advises athletes. "Chronic overallocation into real estate and bad private equity is the Number 1 problem [for athletes] in terms of a financial meltdown," Butowsky told Sports Illustrated.

According to the story, former NFL wide receiver Raghib Ismail lost money he invested in a theme restaurant, a record label, a religious movie, a cosmetics procedure, a phone-card-dispensing system and three calligraphy shops.

Michael Vick filed for Chapter 11 bankruptcy last July partly because he owes $6 million in bank loans he used to invest in an Indiana car-rental franchise, Canadian real estate and a wine shop in Georgia, according to the report.

Divorces and child support don't help, either. Athletes and agents estimate that the divorce rate for pro athletes is between 60 and 80 percent, according to the story. Furthermore, a celebrity divorce lawyer told Sports Illustrated that athletes obtain prenuptial agreements at rates appreciably less frequent than non-athletes at the same financial level.

As for family planning (or lack thereof), ex-NBA player Shawn Kemp and NFL free agent Travis Henry are among the athletes whose fortunes have been drained by five-figure monthly child-support obligations.

http://www.sportingnews.com/yourturn/viewtopic.php?t=530674

Simply pathetic. In times when hard working people are struggling to make ends meet, this comes out? I don't can't feel sorry for them.

This is not surprising. Rich people are rich because they know how to manage their money. This is no different than all the lottery winners that have gone broke.

 

[eefflrat]

I gotta wonder what the percentage was say, a year ago. Or even better 3 years ago before the real estate market bailed? With the massive downturn of the economy I have to believe that the number of those bankrupt has gone up considerably over the history the NFL....

exactly.. let's just say these guys invested 50% of their funds into the stock market, and were used to 15-20% returns, which paid a large percentage of their debt. then the market crashed, the stocks were worth crap, their houses had negative equity, yet they still had bills.don't get me wrong, these guys still live well above their means, but as a whole they are just as impacted by the economy as the rest of us. Many of them are stupid, or ill advised as well. I don't have much sympathy, I have to tell you If i had a $1,000,000 I would have a major head start on the rest of my life and my children's lives as well. My mortgage is all I owe, and it is $200,000, give me the other $800,000 and i guarantee you won't read about me in bankruptcy court......EVER

 

[Chicago Hooligan]

The whole list of Raghib's investments is fairly amazing. It's like a lost season of I Love Lucy plots.

 

[Dexter Manley]

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

i guess some of the 875 grand goes to a mortgage payment but where the heck does the rest go......i would think it would be hard to spend that much every month. and 10,000 hanging out money!!!!stupidity reigns supreme.

I know Shaq's monthly cable bill is low to mid 5 figures. That number came out when he was going through his divorce, before reconciling. It completely blew my mind.

 

[Phurfur]

I gotta wonder what the percentage was say, a year ago. Or even better 3 years ago before the real estate market bailed? With the massive downturn of the economy I have to believe that the number of those bankrupt has gone up considerably over the history the NFL....

exactly.. let's just say these guys invested 50% of their funds into the stock market, and were used to 15-20% returns, which paid a large percentage of their debt. then the market crashed, the stocks were worth crap, their houses had negative equity, yet they still had bills.don't get me wrong, these guys still live well above their means, but as a whole they are just as impacted by the economy as the rest of us. Many of them are stupid, or ill advised as well. I don't have much sympathy, I have to tell you If i had a $1,000,000 I would have a major head start on the rest of my life and my children's lives as well. My mortgage is all I owe, and it is $200,000, give me the other $800,000 and i guarantee you won't read about me in bankruptcy court......EVER

If I have $100 million and I invest half but lose half of that to a bad econmomy I still have $25 million. I have plenty of time to adjust my life style.Your example of 15-20% yearly (?) returns shows you do not invest in the market.

 

[FUBAR]

Let's see, you give an 18-24 year old a few million per year, fame / notoriety, access to things and parties most people only dream about, most of them still hang out with the same group that has always told them how great they are as they ride their coattails, there's a lot of people looking to take advantage of their ignorance and few with their true best interest at heart, and we're surprised by this?

 

[jonessed]

They don't get paid for their intelligence.

 

[The Man with the Plan]

When you spend money on Coke, booze in the VIP of the club, hos,houses,coke,cars,making it rain, coke it all adds up after a while.

 

[lord_helmet]

When you spend money on Coke, booze in the VIP of the club, hos,houses,coke,cars,making it rain, coke it all adds up after a while.

Second coke goes before hos, third before making it rain. At least get the order right.

 

[eefflrat]

I gotta wonder what the percentage was say, a year ago. Or even better 3 years ago before the real estate market bailed? With the massive downturn of the economy I have to believe that the number of those bankrupt has gone up considerably over the history the NFL....

exactly.. let's just say these guys invested 50% of their funds into the stock market, and were used to 15-20% returns, which paid a large percentage of their debt. then the market crashed, the stocks were worth crap, their houses had negative equity, yet they still had bills.don't get me wrong, these guys still live well above their means, but as a whole they are just as impacted by the economy as the rest of us. Many of them are stupid, or ill advised as well. I don't have much sympathy, I have to tell you If i had a $1,000,000 I would have a major head start on the rest of my life and my children's lives as well. My mortgage is all I owe, and it is $200,000, give me the other $800,000 and i guarantee you won't read about me in bankruptcy court......EVER

If I have $100 million and I invest half but lose half of that to a bad econmomy I still have $25 million. I have plenty of time to adjust my life style.Your example of 15-20% yearly (?) returns shows you do not invest in the market.

why, people weren't making 15-20% on their money from 1997-2007? with the exception of a bad year here and there i think they did. don't presume to know what I do or don't do. 50% may have been in the market, and others bought real estate and pissed the rest away.

 

[trader jake]

WE LANDED ON THE MOON!!!!1

 

[msommer]

I gotta wonder what the percentage was say, a year ago. Or even better 3 years ago before the real estate market bailed? With the massive downturn of the economy I have to believe that the number of those bankrupt has gone up considerably over the history the NFL....

exactly.. let's just say these guys invested 50% of their funds into the stock market, and were used to 15-20% returns, which paid a large percentage of their debt. then the market crashed, the stocks were worth crap, their houses had negative equity, yet they still had bills.don't get me wrong, these guys still live well above their means, but as a whole they are just as impacted by the economy as the rest of us. Many of them are stupid, or ill advised as well. I don't have much sympathy, I have to tell you If i had a $1,000,000 I would have a major head start on the rest of my life and my children's lives as well. My mortgage is all I owe, and it is $200,000, give me the other $800,000 and i guarantee you won't read about me in bankruptcy court......EVER

What debt????? Unless they are really, really stupid



( that last smiley was )

 

[Phurfur]

I gotta wonder what the percentage was say, a year ago. Or even better 3 years ago before the real estate market bailed? With the massive downturn of the economy I have to believe that the number of those bankrupt has gone up considerably over the history the NFL....

exactly.. let's just say these guys invested 50% of their funds into the stock market, and were used to 15-20% returns, which paid a large percentage of their debt. then the market crashed, the stocks were worth crap, their houses had negative equity, yet they still had bills.don't get me wrong, these guys still live well above their means, but as a whole they are just as impacted by the economy as the rest of us. Many of them are stupid, or ill advised as well. I don't have much sympathy, I have to tell you If i had a $1,000,000 I would have a major head start on the rest of my life and my children's lives as well. My mortgage is all I owe, and it is $200,000, give me the other $800,000 and i guarantee you won't read about me in bankruptcy court......EVER

If I have $100 million and I invest half but lose half of that to a bad econmomy I still have $25 million. I have plenty of time to adjust my life style.Your example of 15-20% yearly (?) returns shows you do not invest in the market.

why, people weren't making 15-20% on their money from 1997-2007? with the exception of a bad year here and there i think they did. don't presume to know what I do or don't do. 50% may have been in the market, and others bought real estate and pissed the rest away.

The market fluctuates that is how you play it. Counting on a 15-20% yearly income from the stock market is a pipe dream. This kind of thinking will leave you broke in no time. I make just a fraction of what these guys do, I am invested in the market and real estate, and I am doing fine today. I'm not as well off as I was 2 years ago but I am doing fine. Let me guess, you’re a professional athlete.

 

[Bri]

Seventy-eight percent of former NFL players are bankrupt or under financial stress within two years of retirement

ignore "bankrupt OR" clever wording or bad journalismthis is not surprising, probably 78% of americans are under financial stress; an even higher percent within two years of retirement too.

 

[cstu]

The whole list of Raghib's investments is fairly amazing. It's like a lost season of I Love Lucy plots.

 

[bjabrad]

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

i guess some of the 875 grand goes to a mortgage payment but where the heck does the rest go......i would think it would be hard to spend that much every month. and 10,000 hanging out money!!!!stupidity reigns supreme.

I know Shaq's monthly cable bill is low to mid 5 figures. That number came out when he was going through his divorce, before reconciling. It completely blew my mind.

$5,000/mo for cable TV??? DirecTV used to have a $7500 yearly package that included every channel, ppv sports and ppv movie as well as 10 receivers and a concierge service but $7500 per year is a lot less than $60,000.

 

[mggoilers]

If I'm a millionaire Pro athlete, I'm doing the following

Explain to the people around you, this happening to me...not to them. We can talk about houses, cars, and money when we get to the second contract.

Get a Vasectomy

Buy 1 house

Buy 1 car

Don't get married, and if you do..pre-nup. Try not to live in NY or CA, divorce laws are killer.

Put your money away, earning 3-6% on your investment is respectable. No need to be greedy

Save your fun, or investments for your retirement...when you have time to focus on your money. That becomes your job when you retire, your sport is your job now.

respect your money, respect your job, and take care of your body.

 

[massraider]

I wouldn't say I feel bad for them, there are certainly people more worthy of my sympathy. I'd say it's a shame.

I am not happy about it, that's for sure. Maybe a few of you ought to think about why you are so excited that some perfect strangers don't know how to manage their money.

I'd really like to see the pro teams get more involved, offer safe money management options to their players.

 

[tombonneau]

"three calligraphy shops" is blowing my mind.

Calligraphy is the future of the Internet.

 

[Matt Waldman]

I wouldn't say I feel bad for them, there are certainly people more worthy of my sympathy. I'd say it's a shame.I am not happy about it, that's for sure. Maybe a few of you ought to think about why you are so excited that some perfect strangers don't know how to manage their money.I'd really like to see the pro teams get more involved, offer safe money management options to their players.

Excellent reply. It is a shame and for some of these guys, getting this kind of money is like landing on the moon. Sure lack of intelligence is probably a factor, but I could say the same thing about people who invested money into a Madoff Fund based hearsay from other people rather than doing their due diligence to research the fund. But you cannot discount that this frequently comes about because of what you're taught and what you learn around you as you grow up. Like it or not growing up poor and growing up rich in any country can have stark contrasts in what you learn. It takes time to unlearn old lessons and learn new ones that get deeply ingrained. Larry Fitzgerald is a great example of a player who is very tight with his money. Is he a smart guy? I think so, but I'm sure some would say he wasn't too bright to get involved with a Raiders Cheerleader, have a baby, and dealing with domestic issues that have gotten to the press. The NFL has its rookie seminar, but I agree an expanded program where pro teams actually do more in conjunction with the NFL to help players learn what they need to learn with more follow up than a "welcome to the NFL, let's role play scenarios for kicks that you will encounter for a few days and that's it," would be a start. You can't make people invest a certain away, but you can do more to lead them in the right direction and I think Massraider's point is a good one. It's disgusting these guys have no self control over their money and yeah, they are ultimately responsible for themselves, but when you see a trend this disturbingly high, the NFL would be wise to address it proactively.

 

[az_prof]

Excess, bad investments turn athletes broke

Posted: March 23, 2009

Sporting News staff reports

Seventy-eight percent of former NFL players are bankrupt or under financial stress within two years of retirement, and 60 percent of former NBA players are broke within five years of retirement, according to a Sports Illustrated story detailing the extravagant spending habits of professional athletes.

Documents cited in the story show that Shaquille O'Neal spends $875,015 per month, while former NBA guard Kenny Anderson burned through the $60 million he made as a player, partly by spending $41,000 per month, which included $10,000 worth of "hanging-out money."

But the biggest drain on athletes' money is poor investments, says Ed Butowsky, a wealth manager who advises athletes. "Chronic overallocation into real estate and bad private equity is the Number 1 problem [for athletes] in terms of a financial meltdown," Butowsky told Sports Illustrated.

According to the story, former NFL wide receiver Raghib Ismail lost money he invested in a theme restaurant, a record label, a religious movie, a cosmetics procedure, a phone-card-dispensing system and three calligraphy shops.

Michael Vick filed for Chapter 11 bankruptcy last July partly because he owes $6 million in bank loans he used to invest in an Indiana car-rental franchise, Canadian real estate and a wine shop in Georgia, according to the report.

Divorces and child support don't help, either. Athletes and agents estimate that the divorce rate for pro athletes is between 60 and 80 percent, according to the story. Furthermore, a celebrity divorce lawyer told Sports Illustrated that athletes obtain prenuptial agreements at rates appreciably less frequent than non-athletes at the same financial level.

As for family planning (or lack thereof), ex-NBA player Shawn Kemp and NFL free agent Travis Henry are among the athletes whose fortunes have been drained by five-figure monthly child-support obligations.

http://www.sportingnews.com/yourturn/viewtopic.php?t=530674

Simply pathetic. In times when hard working people are struggling to make ends meet, this comes out? I don't can't feel sorry for them.

This is not surprising. Rich people are rich because they know how to manage their money. This is no different than all the lottery winners that have gone broke.

How many rich people are rich because they inherited it? The idea that they are better at managing their money than other people is a bit of a myth.I would like to know what percentage of people who make the kind of money athletes make have gone broke in the last year? I bet it is high. This economy is killing alot of people that the poster above falsely assumes are not going broke. How smart were all those Wall Street investors and bankers? Lots of people going broke right now with bad real estate deals and bad investments.

The bottom line to me is that colleges are clearly not doing a good job of educating student-athletes. I suppose some of these guys didn't graduate, but the ones who graduated should do a better job of managing their money if they are being taught critical thinking skills.

 

[CanadianNFLJunkie]

When I saw this thread I thought of two things..... broke and disabled in some way, knees, shoulders, ankle..etc..etc...

Am I surprised they are broke? No.

 

[massraider]

The bottom line to me is that colleges are clearly not doing a good job of educating student-athletes. I suppose some of these guys didn't graduate, but the ones who graduated should do a better job of managing their money if they are being taught critical thinking skills.

Eventually, these players have to trust someone with their money. Very few of these guys manage their money themselves. And very few of them went to school to get an education, so putting it on the college to me is kinda funny. I personally think a lot of it comes down to the people the player has in his life. Mike Vick, to me, seemed to be getting no good advice, and had no one decent in his life. Not a surprise he blew thru his cash.