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RNR
09-20-2009, 09:51 AM
http://sports.yahoo.com/nfl/blog/shutdown_corner/post/Why-do-so-many-NFL-players-go-bankrupt-?urn=nfl,190555
http://sportsillustrated.cnn.com/vault/article/magazine/MAG1153364/1/index.htm

Why do so many NFL players go bankrupt?
By Chris Chase

Within two years of retirement, 78 percent of NFL players are bankrupt or in severe financial distress. Unlike Rocket Ismail, most of those players can't blame it on the negative karma associated with getting a bear hug from Michael Irvin.

How is this possible? The minimum salary for rookies in 2009 is $310,000. That jumps to $460,000 for two year veterans. How can men who earn so much have so little after retirement?

The Business Insider looked at that question today and listed 10 ways that sports stars destroy their finances.

Most of the reasons fall under the umbrella of one of the ways, "Act Dumb". (These include "Do Drugs", "Fight Dogs" and "Have Too Many Children". Two outta three ain't bad, Michael Vick(notes).)

Other paths to financial ruin like "Put Money in a Ponzi Scheme" or "Invest Too Much In Real Estate" can be more about bad luck than anything, but never underestimate the power of habitually poor judgment. (Or stupidity. Tomato/Tomahto.) Case in point, here's a blurb from the "Making Bad Investments" entry:

Rocket Ismail also squandered a fortune funding an inspirational movie; the music label COZ Records; a cosmetics procedure whereby oxygen was absorbed into the skin; a plan to create nationwide phone-card dispensers; a Rock N' Roll Café, a theme restaurant in New England; and recently, three shops dubbed It's in the Name, where tourists could buy framed calligraphy of names or proverbs of their choice.

That sounds like the business plan of Kramerica Industries. Any one (or two) of those things by themselves would qualify as bad investments. Put them all together and you can understand how Ismail blew through $20 million in salary. (Of the calligraphy store, Ismail says its failure can be blamed on Hurricane Katrina. The cosmetics procedure: "sharks in the beauty industry". The Rock N' Roll Cafe: It being a Rock N' Roll Cafe.)

Ismail's case is more the exception than the rule though. The 78 percent number is buoyed by the fact that the average NFL career lasts just three years. So, figure a player gets drafted in 2009, signs for the minimum and lasts three years in the league: He will have earned about $1.2 million in salary. Factor in taxes, cost of living and the misguided belief that there will be more years and bigger paydays down the road, and it becomes a lot easier to see how so many players struggle with money after their careers end. Nobody plans on playing just three years in the NFL, you know?

Buck
09-20-2009, 09:56 AM
Rocket Ismail is a dumbass.

Why didn't he get a real financial adviser if he wanted to invest his money wisely?

Rain Man
09-20-2009, 10:06 AM
Wow, I was just wondering the other day where I could buy some calligraphy. Looks like he was just a little too far ahead of the curve on the calligraphy craze.

RNR
09-20-2009, 10:06 AM
Rocket Ismail is a dumbass.

Why didn't he get a real financial adviser if he wanted to invest his money wisely?

It sounds like 78% of them are dumbasses

'Hamas' Jenkins
09-20-2009, 10:08 AM
It's not just limited to the NFL. The Toronto Sun had a really good story about the number of NBA players who go broke shortly after they retire. It's a lower percentage, but NBA players make much, much more on average than NFL players.

Look at a guy like Antoine Walker. The dude made 9 figures in his NBA career, and two years after he's out of the game, he's being arrested for bouncing checks in Vegas.

JuicesFlowing
09-20-2009, 10:09 AM
This isn't exactly a repost, but a similar thread was started several weeks ago.

JuicesFlowing
09-20-2009, 10:13 AM
That sounds like the business plan of Kramerica Industries.

http://img85.imageshack.us/img85/9045/kramer.jpg

ArrowheadHawk
09-20-2009, 10:14 AM
This isn't exactly a repost, but a similar thread was started several weeks ago.

Well shit I saw some football posts on here, maybee we shouldn't make any new threads about football.

Bacon Cheeseburger
09-20-2009, 10:27 AM
Well in Ismail's case, it's a classic example of someone thinking they're smart just because they have money. A lot of athletes do that shit, they think because they're successful at one thing they can do anything.

RNR
09-20-2009, 10:28 AM
This isn't exactly a repost, but a similar thread was started several weeks ago.

I did not see that thread. I just saw this one on yahoo and was kind of shocked so I posted it. :shrug:

Bane
09-20-2009, 10:37 AM
I did not see that thread. I just saw this one on yahoo and was kind of shocked so I posted it. :shrug:

Good job.FUGG them if they dont want to look at it,tell them to hit the muthafuggn back button on their browser and shut their fuggn cum dumpsters!!!:cuss:

JuicesFlowing
09-20-2009, 10:38 AM
I did not see that thread. I just saw this one on yahoo and was kind of shocked so I posted it. :shrug:

I'm not blaming you, it was a different take. I'm NOT the repost police ... I was just adding a comment. Sorry ...

ArrowheadHawk
09-20-2009, 10:39 AM
I'm not blaming you, it was a different take. I'm NOT the repost police ... I was just adding a comment. Sorry ...

You kinda sounded like the repost police.

RNR
09-20-2009, 10:39 AM
I'm not blaming you, it was a different take. I'm NOT the repost police ... I was just adding a comment. Sorry ...

No biggie :)

JuicesFlowing
09-20-2009, 10:40 AM
You kinda sounded like the repost police.

I apologized, and the repost police don't do that. Anyway ..............

Mr. Laz
09-20-2009, 10:42 AM
Don't most millionaires go broke pretty quick.

BigOlChiefsfan
09-20-2009, 10:59 AM
They need to talk to big John Alt. Since he retired from the CHIEFS he's got a gig as an investment advisor up in Minnesota, specializing in helping NFL players/coaches keep their money. I remember hearing other players 'make fun' of John on air because he was always about saving money, not flashing it all away. It's not how much you make, kids. It's how much you keep. I don't know if this contact info is up to date, but it should point 'em in the right direction:

http://www.ilssports.com/OurTeam/johnbio.html

2bikemike
09-20-2009, 12:43 PM
A lot of people just flat out don't know how to manage money. Most Lottery winners go broke as well. They think they have this endless supply of money.

Learn the difference between an Asset and a Liability, buy more assets and less liabilities and you should be able to keep your money.

Saul Good
09-20-2009, 12:46 PM
They need to talk to big John Alt. Since he retired from the CHIEFS he's got a gig as an investment advisor up in Minnesota, specializing in helping NFL players/coaches keep their money. I remember hearing other players 'make fun' of John on air because he was always about saving money, not flashing it all away. It's not how much you make, kids. It's how much you keep. I don't know if this contact info is up to date, but it should point 'em in the right direction:

http://www.ilssports.com/OurTeam/johnbio.html

Is he as good as Lenny Dykstra?