Amazing stat I heard today

[MikeO]

Listened to Michael Lombardi today of the NFL Network on a radio interview. He gave an amazing stat that I almost can't believe is true, but he swears its true. I am going to see if I can verify it because its so amazing. But the stat was, 90% of the NFL players who made over $15 mill in their NFL Career are currently bankrupt.

That is amazing. 90%! And he was hinting at this but wasn't so cold to say it bluntly, but he was hinting that the NFL needs to fix THAT problem (of players going broke) just as much as they to the concussion problem. The league and union TOGETHER must educate its players more on how better to protect their money and prepare for life after the game. A 2 day rookie symposium(aka..vacation) once in their life at the age of 22 isn't enough!

I know, at the end of the day it always comes down to personal responsibility and you cant help someone who doesn't want to be helped. And there will always be dumb players who do dumb things with their money. But if the number really is 90%, they all can't be dumb. They all aren't bad people. That number is almost a cry for help! I know its tough to feel sorry for someone who had that much money thrown at them and they blew it, but its clearly a problem for the league and it must be addressed.

[EKnight]

Starting this by saying it is in no way a rant aimed at Mike. I volunteer in a soup kitchen every weekend, feeding families- many of whom have infants or small children- and I will NOT feel sorry for these overgrown adolescent athletes who mostly got a free education and more money than they should ever spend in a lifetime, and are now broke. Boo- Fing- hoo. Welcome to the real world. Maybe they should spend less money on strippers and drugs and designer everythings- or bounties on other players- and hire a better lawyer and accountant rather than letting family members or friends handle their finances. No...not one bit of sympathy. The fact that 10% are NOT bankrupt is plausibility that it can be done. -EK

[Spider-Dan]

It's not really that surprising.  The average career length for NFL players is about 3.5 years... how many people between the ages of 22 and 26 do/did you know that can capably plan their financial future for the rest of their life?

It can be fairly stated that the average player won't make $15m+, and that's true.  But if you look at the players making that kind of money, usually they fall into three camps:

1) high first-rounders that never sign another big contract (e.g. Robert Gallery, Cedric Benson)
2) breakout players that hit the jackpot on their first re-signing, but don't do much after that (e.g. Adalius Thomas, Trent Green)
3) players from either of the first two categories that go on to have long, exceptional careers (e.g. Richard Seymour, Zach Thomas)

I wouldn't be at all surprised to hear that the vast majority of people in categories 1) and 2) wind up broke.

[MikeO]

It's not really that surprising.  The average career length for NFL players is about 3.5 years... how many people between the ages of 22 and 26 do/did you know that can capably plan their financial future for the rest of their life?

Totally agree with your post. And that's the entire  point Michael Lombardi was making and I agree with. These young people are not prepared for what the NFL offers them. And the NFL/Union must do better! It's not about feeling sorry for these rich people. That's not the issue! That's not even close to the issue! It's about the NFL (in this case) along with the NFLPA Union stepping in and preparing their stars/members, these young people for the future. I mean 90% is an insane number and something must be done. These young people are not prepared to handle with or deal with the hand that is dealt them and the league and union must do a better job.

I know the concussion story right now is the "now" issue and the "sexy" media issue. This story though is going to grow legs in the coming weeks, months, and years and it will be an issue the NFL will have to deal with. It gives the league a black eye and a poor reflection of its "stars."

[MyGodWearsAHoodie]

I find that stat as stated very difficult to believe.

For one, I am willing to bet that more than 10% of all NFL players that made over $15 million in their NFL career are currently active and solvent.   

[MikeO]

I find that stat as stated very difficult to believe.

For one, I am willing to bet that more than 10% of all NFL players that made over $15 million in their NFL career are currently active and solvent.   

Me too. That's why I want to see if I can verify it somehow.

[tubba marxxx]

This is mind blowing to me.  You have to be pretty stupid to blow through $15 million dollars.

[Spider-Dan]

I think it's pretty silly when we, as middle-class citizens, declare how stupid you have to be to spend millions of dollars.

Should a 25-year-old who just signed a $25m contract be driving a Camry and living in a $200k 4-bedroom house?  Perhaps he should be buying his clothes at Sears and eating dinner at Appleby's?   I imagine people in rural China who live on (the equivalent of) less than $2000 a year would be equally shocked to hear that a person making $30k/year could ever possibly go broke.

I think that this is more of a commentary on the tragedy of youth, along with the short careers of pro athletes.

[Cathal]

^^^ I don't think it's stupid for middle-class people to say if you've got over $15 million and now you're broke, way to go moron. It's because any one of us can feel like if we had that money, we'd be set for life, more or less.

Yes, a 25-year-old who isn't a moron should drive a practical car and live in a practical house. Warren Buffet, according to an article, still lives in the same house he bought decades ago. That's how you live. It isn't that hard.

[Landshark]

For the same reason that a lot of people who hit the lottery suddenly end up broke.  They don't know how to manage that money.

[Fins4ever]

I find that stat as stated very difficult to believe.

For one, I am willing to bet that more than 10% of all NFL players that made over $15 million in their NFL career are currently active and solvent.   

I agree with you. First of all how many make over 15 mil in their career? I would guess less than 10% of ALL NFL players make 15 mil or more in their career. Even if it were true that 90% ends up broke, which  don't believe, how many people we talking about? A very small minority. Also, how far back did he go? 

[Spider-Dan]

^^^ I don't think it's stupid for middle-class people to say if you've got over $15 million and now you're broke, way to go moron. It's because any one of us can feel like if we had that money, we'd be set for life, more or less.

What do you suppose the bankruptcy rate for middle-class lottery winners is?  How about middle-class lottery winners in their early-mid 20s?

How would you feel about someone from a third-world country saying that one must be a moron to be making $20,000 a year (which would be incredible wealth to them) and still lose their home?

Yes, a 25-year-old who isn't a moron should drive a practical car and live in a practical house.

I'm going to go out on a limb and say that your idea of what is and is not "practical" happens to align nicely with your own income, and not the income of someone making, say, $15k/year.

[fyo]

Just to get some, perhaps, more reputable sources...

Sports Illustrated ran an article a few years ago on this topic. It claims, among other things, that close to 80% of NFL players are bankrupt or in financial trouble two years after leaving the league. 60% of NBA players are claimed to be bankrupt 5 years after retiring.

http://sportsillustrated.cnn.com/vault/article/magazine/MAG1153364/1/index.htm

[Cathal]

Anyone of any class can certainly say to the class above them that they're a fool for going bankrupt because they feel like they can always live just fine with what the person above them makes. So of course, if someone who makes $15K a year sees someone making $40K a year go bankrupt they'll call them stupid for spending money outside of their means because they could live just fine with $40K a year.

There's no need to get into some sort of argument over semantics (which I've noticed you like to do) when the general idea is you live within your means. If you make $15 million a year and you know pretty good you'll only be making that for maybe another a year or two, you prepare for life without that paycheck.

What's so difficult? I live within my means and own a place as I'm sure other people do here.

P.S. Please note, I'm not saying there are acts of God that make you go bankrupt, but just spending outside of your means and not realizing your paycheck isn't going to last.

[BigDaddyFin]

I got to wonder though how much of it is because of the athlete's own ignorance (example not knowing how to invest properly or watch closely where his/her money goes) and how much of it is them getting ripped off by agents, crooked accountants, hangers on, family members, shit like that.    It would just seem to me that pro athletes are easy targets for it.  There are plenty of guys in the league who know enough to go "I should let an accountant/firm handle my money" but how many of them are smart enough to know when to say "wait a minute, the firm I hired is ripping me off big time"?