A reoccurring theme that I see in the news that was brought up by Dr. Boyce Watkins is that athletes who made several million dollars in their career end up being bankrupt within 10 years of their retirement. A general theme as to why these athletes lose all of their money is due to trusting the wrong people and making poor business decisions. Also, having to keep up with the high profile celebrity lifestyle takes its toll when not having any source of income after retiring.
Others say that there is a psychological reason as to why bankruptcy occurs. With the loss of celebrity status, name recognition, income, and perks such as free meals and support staff, many athletes fill the void with frivolous spending. Also, it is mentally difficult to accept a job with such an extreme pay cut when retiring after being accustomed to having multimillion-dollar contracts and bonuses.
The prevalent theory, however, is that athletes spend too much on money houses, cars, and jewelry. They also give money away to too many friends and family members, as well as suspicious business ventures.
References:
http://sports.espn.go.com/espnmag/story?id=3469271
http://www.briancuban.com/why-athletes-go-broke/
http://www.usatoday.com/sports/football/super/2006-01-28-retirement-perils_x.htm
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ReplyDeleteI agree with Boyce as to why Athletes go broke. They don't save enough money, they make poor decisions, and they don't think about the future.
ReplyDeleteposted by: Scott Graulich