Ten reasons why ex-NFL players go broke...

[Msmith]

1) Gross vs. net: It never fails; when my clients get their first NFL check they call me and say something is wrong. They are floored by how much is taken out for taxes and other deductions. Unfortunately, the shock doesn’t resonate long enough. I would say 90% of players have some type of direct deposit or their check gets mailed to their investment advisor and the players never see the net amount. Thus, they think they always are making more money (in gross numbers) than they actually are...

Link: http://www.nationalfootballpost.com/...-Go-Broke.html

[BigMeatballDave]

Why don't their Agents prepare them for this?

[DaKCMan AP]

Originally Posted by Dave

Why don't their Agents prepare them for this?

Reason #4

4) Weak financial counsel: What I mean by this is that most financial advisors, accountants and confidants I met and observed over the years don’t have the fortitude to stand up to their clients in fear of losing them. If they ride their clients too hard about spending the athlete may just fire him or her. So they tend not to make the hard calls and put their foot down on spending patterns. For many consultants, it’s a race to invest the players’ assets before they spend it. Consultants who take their time to educate, communicate and have a way of helping players control spending get an A+ in my book but they are few and far between.

[Reerun_KC]

I would guess complete lack of education and common sense would be the main reason...

[InChiefsHeaven]

Originally Posted by Dave

Why don't their Agents prepare them for this?

They probably think they are grownups...

[Micjones]

Great article.

They left maybe the most important reason off the list though.

11). Maintenance: Players often fail to calculate the on-going costs of property taxes and monthly child-support/alimony payments. They also tend not to adjust for the weeks, during they year, where they don't receive gamechecks. There also comes a point where the checks stop coming altogether. By that time they've gotten so accustomed to a particular lifestyle, they have little hope of sustaining it.

[Radar Chief]

Originally Posted by Dave

Why don't their Agents prepare them for this?

Ever try to talk to a 20 something with his first big paycheck in his hands?

[mr. tegu]

3) The cost of vanity: I tell my friends that if I opened a specialized rim shop serving pro athletes, instead of being an agent, I would be a rich man. The same goes for custom jewelry. Unfortunately, I noticed that many athletes associate wealth with material possession. So they feel like the more they have, the richer they are. I would say 90% of all athletes are getting ripped off on auto and jewelry purchases. I had one client have a watch appraised that he thought was worth over the $20,000 that he paid for it. The appraiser valued it at $1,500. The diamonds he thought he had on the watch weren’t real. I did it to teach him a lesson. The obsession to have the latest and greatest toys, the biggest house, the newest car(s) and most expensive clothes is probably the number one wealth killer for professional athletes. As I always say, “rich people have things, wealthy people have investments”.

I like that one.

[Micjones]

Originally Posted by InChiefsHell

They probably think they are grownups...

Because grownups don't mismanage money?

[Frazod]

Originally Posted by Radar Chief

Ever try to talk to a 20 something with his first big paycheck in his hands?

Especially one who's never had/managed money before. I remember when I got my first credit card - I thought it was the coolest thing ever, was showing it off to people. My XO pulled me aside and told me that I should never use the card unless I had enough money to pay for what I purchased. I thought he was a moron - what was the use of having a credit card then? Of course, it was some of the best advice I ever got. And by not listening to it I completely screwed myself over.

Only difference between me and these kids is that their irresponsibility is infinitely more spectacular.

[Deberg_1990]

Originally Posted by Micjones

11). Maintenance: Players often fail to calculate the on-going costs of property taxes and monthly child-support/alimony payments.

So basically these guys are like everyone else, they just have bigger bills.

[Rain Man]

Originally Posted by Micjones

Great article.

They left maybe the most important reason off the list though.

11). Maintenance: Players often fail to calculate the on-going costs of property taxes and monthly child-support/alimony payments. They also tend not to adjust for the weeks, during they year, where they don't receive gamechecks. There also comes a point where the checks stop coming altogether. By that time they've gotten so accustomed to a particular lifestyle, they have little hope of sustaining it.

12.) Unwillingness to put on a condom.

[Frazod]

Originally Posted by Rain Man

12.) Unwillingness to put on a condom.

13.) Foolishly believing the hot babe who swears she's on the pill isn't really an ovulating gold-digging whore.

[Micjones]

Originally Posted by Deberg_1990

So basically these guys are like everyone else, they just have bigger bills.

Yep.

That's partly why I tend not to judge them.
It's easy for working-class people to wag their finger at athletes, but they tend to have the very same financial struggles (on a smaller scale).

[lcarus]

Automobiles and the rims/sound systems/accessories. Half their money probably goes to these things.