Monday, April 20, 2009

Athletes Going Broke

Posted By: Asim Mohammed


Many athletes, active and retired ones always have financial troubles, whether it’s not knowing where their money is going, to just going broke because of ridiculous expenditures and not being adequately educated.

The Toronto Sun ran a piece on athletes going broke and came up with a stat that says about 60% of retired NBA players go broke five years after their NBA pay checks stop arriving. Many famous athletes are in trouble because of the lack of education on how to handle their money. Many of them come from poor back grounds and when they start receiving millions of dollars from lucrative player contracts, they spend it on friends who want big houses, expensive cars, and clothes. Evander Holyfield is one of these athletes. He cannot make child support payments, and his 54,000-square-foot, 109-room; 17-bathroom home was set for auction due to a $10 million loan default. Another case of an athlete in financial trouble is Latrell Sprewell, a former NBA all star, Sprewell was in the final season of a $62-million five-year contract with the New York Knicks, said he was insulted by the Minnesota Timberwolve’s offer of a contract extension that was reportedly worth between $27 million and $30 million for three seasons. Sprewell stated, “I’ve got my family to feed.”

There are many stories of rich athletes going broke either during their playing times or afterwards. If athletes can educate themselves, earn money management skills and make smart, safe investments along the way, they should be good shape for the future.


http://www.mickhagen.com/2008/08/04/athletes-and-bankruptcy/

http://www.briancuban.com/why-athletes-go-broke/

http://sports.espn.go.com/espnmag/story?id=3469271




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