Author Topic: NFL players warn rookies: STOP SPENDING!  (Read 5817 times)

Goatee Joe

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NFL players warn rookies: STOP SPENDING!
« on: May 12, 2014, 02:42:56 PM »
CNN Money just ran this article this weekend.  Seems the NFL is trying to inject some Mustachianism into these rookies signing big $$$ contracts.  Most shocking stat:  78% of players are bankrupt or nearly so after retirement.  Wow!  That one drives me crazy.  FOUR OF FIVE players go broke?  What the???  Who the hell is advising these guys?

http://money.cnn.com/2014/05/10/investing/nfl-draft-money/index.html?hpt=hp_t2

greenmimama

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #1 on: May 12, 2014, 02:50:41 PM »
Yes, it's so sad to see that happen, but it's been going on for years and years. They get the fame, but the money comes in time, and the really big money is only for commercial deals.

The colleges should really start hammering this into them, every athlete should have to take some great real life financial courses.

viper155

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #2 on: May 12, 2014, 03:06:27 PM »
I'm not so sure that learning how to handle money should be left up to anyone but yourself especially the way many colleges these days are so anti-capitalism. These guys are college educated and should be able to figure out how to get financial advice. Plus, I know this is not the place for political discussions but many of these guys don't grow up around the greatest role models. The teams, I'm sure, have some sort of financial advice programs but you can lead a horse to water......

Jamesqf

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #3 on: May 12, 2014, 03:25:36 PM »
These guys are college educated and should be able to figure out how to get financial advice...

No, they were college football players.  While it's possible to get a college education and play football, it's not exactly common.

Supertaster

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #4 on: May 12, 2014, 05:43:29 PM »
A lot has been said about how professional athletes can blow through millions of dollars in a few years. ESPN did a great documentary on this last year. It's on YouTube if you haven't seen it and would like to check it out.

http://www.youtube.com/watch?v=okFEZCgE5ag

viper155

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #5 on: May 12, 2014, 05:58:10 PM »
These guys are college educated and should be able to figure out how to get financial advice...

No, they were college football players.  While it's possible to get a college education and play football, it's not exactly common.

Point taken! Still, they are on campus and coddled all the way through but they must learn something. No?

johnintaiwan

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #6 on: May 12, 2014, 06:52:19 PM »
I think the problem is that they think it will last forever. One example is Ryan Leaf. He was one of the top drafted QB's 10 or so years ago and I think he got a few million in a signing bonus. Turned out he didnt have what it takes and did not get his contract resigned. Last i heard he was breaking into homes stealing medication.

I really think that the NFL should have some sort of pension program (if they dont already) like you only get a % of your money and the rest is put into a trust for you and pays out like an annuity.

libertarian4321

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #7 on: May 13, 2014, 04:04:01 AM »
I think the problem is that they think it will last forever. One example is Ryan Leaf. He was one of the top drafted QB's 10 or so years ago and I think he got a few million in a signing bonus. Turned out he didnt have what it takes and did not get his contract resigned. Last i heard he was breaking into homes stealing medication.

I really think that the NFL should have some sort of pension program (if they dont already) like you only get a % of your money and the rest is put into a trust for you and pays out like an annuity.

Ryan Leaf, for a while, appeared to be doing well.  He made a huge amount of money, despite being a complete bust as a player.  He still had much of that signing bonus and initial contract money years after "retiring."

Problem was, Ryan Leaf was also a first class idiot (which is one of the reasons he washed out of the NFL so quickly).  Among his many failings was drug addiction.

The NFL does have a pension program, but it's not enough to keep idiots "living large."  If they are used to spending millions per year, the NFL pension isn't going to help much once they lose their NFL (or NBA) income.

We all know the that the "scholar athlete" label is a JOKE for most of these clowns.  They aren't in college to learn anything other than how to catch a football or throw a ball through a hoop.  Since they aren't going to take serious classes anyway, why not replace their "underwater basket weaving" class with a class on money basics?  Most, of course, will learn nothing from it, but if even a small percentage of them learn the basics, it might be worthwhile.


Jamesqf

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #8 on: May 13, 2014, 11:34:35 AM »
Point taken! Still, they are on campus and coddled all the way through but they must learn something. No?

No.  Consider the number of college graduates with a 'real' degree, who get decent-paying jobs - say $50-100K instead of $5-10 million - yet still manage to blow it all and max out the credit cards.  Same phenomenon, just at a smaller scale.

Tyler

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #9 on: May 13, 2014, 11:56:57 AM »
No.  Consider the number of college graduates with a 'real' degree, who get decent-paying jobs - say $50-100K instead of $5-10 million - yet still manage to blow it all and max out the credit cards.  Same phenomenon, just at a smaller scale.

Exactly.  On average, professional athletes are probably no worse with money than your average American.  But you hear about their failures more because the scale is larger and they're famous.  Also, the fact that their careers only last a few years make saving for the future even more important. But the typical kid (of any profession) right out of school doesn't know how to save jack. 

Guizmo

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #10 on: May 13, 2014, 12:29:10 PM »
Where can I find an underwater basket weaving class. It sounds fun.

Eric

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #11 on: May 13, 2014, 01:16:26 PM »
Where can I find an underwater basket weaving class. It sounds fun.

Any SEC school will do :)

Dr. A

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #12 on: May 13, 2014, 02:26:59 PM »
I really think that the NFL should have some sort of pension program (if they dont already) like you only get a % of your money and the rest is put into a trust for you and pays out like an annuity.

The do, though it is modest given how short the average career is.

Quote
The NFL is an organization that rewards the number of active seasons in both their pension and 401k plan. The pension, which players become eligible for at age 55, gives them $470/month for each season they played.
http://blog.futureadvisor.com/nfl-players-must-go-long-on-retirement/

In comparison, baseball offers health insurance for life after one day on a roster (even if they never get an at-bat), and qualify for a pension after 43 days on a roster. Minimum pension is $34,000 per year.
http://benefitsbryancave.com/major-league-baseball-pension-and-healthcare-benefits/

I've read that this has been a sticking point in negotiations between the league and players union in recent years. Especially the health insurance part, as NFL players frequently have chronic injuries after retiring; and that's before even going into all the recent research on long-term effects of head injuries.

johnintaiwan

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Re: NFL players warn rookies: STOP SPENDING!
« Reply #13 on: May 13, 2014, 06:55:50 PM »
I can speak to the fact that many (most?) of the college athletes that go pro in a big sport probably did not do much studying at school. I got paid a lot of money from many students who are now playing professionally to help them pass their classes through any means necessary. It was a pretty easy gig since there would be suspicions if they turned in anything higher than about a C-, and it paid pretty well. Not sure what most people think about the ethics/morals of that though.