Super Bowl 2013: Top Reasons Why NFL Players Go Broke

The Super Bowl is approaching and the glitz and glamour of the game and surrounding festivities are stark reminders of the money washing around the game. Players earn tens of millions of dollars but, recently, a number of stories have come to light of ex-players experiencing financial difficulty and even bankruptcy only a few years out of the game. As many as 78 per cent of former NFL players have gone bankrupt or are under financial stress after only two years out of the game, according to Sports Illustrated. It's not just the bling that's hurting these guys. Here are some reasons why multi-million dollar football players often find themselves destitute after retirement.

No Financial Literacy
Most players come out of college where they have lived on scholarships, which don't make them rich but pay most of their bills. By the time they make NFL they've never had to think about a budget, or at the very least they haven't had to think about the bottom line for a good many years, and some players have no clue how to take care of their finances. As a consequence, many athletes trust their money to the wrong people. Former wide receiver Terrell Owens, known for his flamboyant ways on and off the field, reportedly blamed his "advisors" for his bankruptcy, after he burned through about $80 million in a short amount of time after a 15-year career.
Source: NBCPoor Business Sense
Many players at least have the foresight to know that their careers won't last forever and so begin thinking about the next phase of their life before they retire. Unfortunately, the skills it takes to succeed on the playing field don't always translate in the business world. Former Jacksonville Jaguars quarterback Mark Brunell, who reportedly made about $50 million during his 19 year NFL career, filed for bankruptcy after losing his earnings in bad investments in restaurants and real estate.
Source: Jacksonville.com

Divorce and Support Payments
The divorce rate for professional athletes is astonishingly high at somewhere between 60 percent and 80 per cent, according to a report by Sports Illustrated. Many ex-NFLers have lost significant amounts of their football earnings through spousal support payments. Another trend among pro athletes and NFL players in particular is the high number of children many tend to sire -- often with several women. Former NFL running back Travis Henry, who fathered 11 kids with 10 different women, fell behind on his $15,000 a month child support payments and declared bankruptcy.
Source: ESPN

"Friends" and "Family"
On a recent videocast, retired NBA star Jalen Rose discussed some of the reasons pro athletes go broke. Among the reasons: the obligation suddenly rich athletes feel to help out friends and family by investing in their business schemes and investment ideas. This is something that former NFL-er Frank Middleton, who played offensive lineman, is familiar with. He allegedly found himself in financial difficulty after giving family and friends tens of thousands of dollars, including $10,000 to a cousin for a children's book that has never been published.
Source: beaumontenterprise.com

An Inability to Downsize from a Lavish Lifestyle
A lot of NFL-ers with newfound money to burn buy cars, homes and jewelery among other things that lose value quickly. Once they retire and are not making near the amount of money they were making playing pro-football, it's tough for them to downsize and accept living life on a smaller scale. NFL quarterback Vince Young reportedly squandered about $26 million of his earnings on his lavish lifestyle. The former QB has sued his agent and financial planner and recently wrote on his Twitter account his financial woes happened due to "betrayal by those (he) trusted the most." (please refer back to the No Financial Literacy section).
Source: Houston Chronicle


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