BY: Jamal Harris
In class recently we have been looking
at statistics from past NBA, NFL, and MLB games, as well as super
star athletes. What most people see is the high paid contracts and
sponsorships athletes receive for their abilities. As an accounting
major I have focused in on how athletes have spent their money. Some
of our favorite stars are broke and living check to check after
making tens of millions of dollars. People such as Allen Iverson and
Mike Tyson were once the highest paid athletes, and now are
struggling to make money.
In
2012 ESPN released a 30 for 30 documentary “Broke” which was made
to address the 2009 Sports Illustrated article. The article stated
that 60 percent of NBA players are broke within five years of
retirement, and only three years for 78 percent of NFL players. This
documentary discussed various athletes who are in dealing for debt
due to aimless spending, lack of saving, and gambling issues.
As
an accounting major I want to advise athletes financially. All of the
money they receive can be used to better the community and those who
admire them. Important investments must be made that allow for future
financial security. Athletes feel like they must spend money on
material items to prove their status as wealthy. This is where I
would come in, and make sure the athlete does not lose control of
their spending.
I remember when this episode of 30 for 30 came on and it was interesting to me because many of them took for granted their roots and began wasting their money. Jamal brings up and interesting point where these athletes all should have someone advising their spending and helping them budget their money, but they have to be trustworthy individuals because scams happen all of the time.
ReplyDeleteI also saw this 30 for 30 documentary and it was extremely eye opening on how so many athletes are struggling financially after making millions of dollars throughout their career. When athletes first come into the league and have to go through seminars that give them advice on how to be successful, the 30 for 30 documentary should be required for them to watch. Athletes should keep a closer eye on their money as opposed to trusting numerous other people to manage it. They should be aware of the burden that child support can cause them financially as well.
ReplyDeleteI really feel that this is a good point. I also like what Colby Kirkland said in his comment. When sports players get all that money they get the big head and blow a lot of it. They can get hurt and then they will not get paid no more. They really have to be smart with their money
ReplyDeleteLondon, I can totally agree with our specific point of view. There are a number of players who don't have any financial literacy which causes these millionaire basketball players to ruthlessly spend their money!
ReplyDeleteIt is very common to see retired professional athletes who are struggling to maintain the lifestyle that they had as an athlete. I agree that many professional athletes do not have the financial literacy necessary in order to manage such a high number of income and expenses. It is important that each individual takes responsibility for the wealth that they have accumulated in order to maintain a satisfactory lifestyle.
ReplyDeleteThe problem that most of these athletes face is a lack of financial literacy. Most of them become rich at a very young age after skipping or leaving college early. Also, most of them want to keep up a certain lifestyle. These professional sports have no major pensions or healthcare benefits so its a lose lose situation. i hope this phenomenon changes soon.
ReplyDeleteI agree with Bryan, it's a shame that so many athletes squander their money so quickly and then come up in difficult financial situations.
ReplyDeleteFinancial management is hard for Americans who do not live in the spotlight or have to maintain an image. The professional sports leagues either do not do enough to teach financial literacy. Most sports players are broke within a few years of leaving their respective leagues. But their plight is shared with most average Americans who carry about 20,000 dollars in debt
ReplyDeleteI think its harder for professional sports players to spend modestly because their paychecks enable them to live out their wildest dreams and who wouldn't if they had the opportunity? I also agree that the players main problem in regards to their finances how ever is their lack of financial literacy, many players get excited about being rich and forget to build wealth.
ReplyDeleteI really enjoyed this article. However, I feel that sometimes people fail to realize that most of these athletes making all of this money are the same people who only made it through school because of their athletic ability. Most athletes weren't your smartest students in the classroom; therefore, giving them all of this money they ca't help but to be dumb and mismanage their money. I feel like this problem will only continue and the only this cycle will end is if they start learning from the people who fail before them.
ReplyDeleteI think that this article is great because it brings awareness to the financial situation that many African American athletes face today. Often these athletes are not taught the correct way to manage their money and often do not save their money. I think its good that you want to help these athletes because they need help!
ReplyDeleteI agree with Shelton on this one. Majority of the athletes that go broke tend to be the ones that had the roughest upbringing and never had money growing up. They would have never made it through high school if it wasn't for their coaches, teammates and support around the neighborhood so when they do make it, they feel obligated to share their money with everyone who helped them. I think this is a vicious cycle that we will see for awhile. No matter how many classes they teach, some people just have to learn the hard way and its sad.
ReplyDeleteWhen reading this blog I immediately thought about the 30 for 30 episode titled GOING BROKE on ESPN. Many sports players are very novice when it comes to handling there money. They have not had financial literary workshops on how to save and rely on agents and other people to make financial decisions on their behalf. Most of the time they go out and party most of their money away when they don't actually know how much money is truly coming to their bank account. This level of knowledge about finance within the sports world should be changed to prevent so many people from going into bankruptcy.
ReplyDeleteI wasn't able to see this episode of 30 for 30, but I'm glad that ESPN brought this information to the public and raised awareness around the issue. College athletes that are entering the draft should definitely take note.
ReplyDeleteAthletes have become victims of quick success, quick money, and financial insolvency. Failure in the form of monetary insolvency represents a problem many athletes succumb to. Financial literacy programs, education, and a culture of awareness must be promoted in these sports institutions. Education equals power and athletes have incessantly been void of long term financial security.
ReplyDeleteProfessional athletes have made the mistake of spending most of there money on materialistic things for a long time. I've always wondered how they were able to maintain after their careers are over, but clearly many of them struggle. I think it would be beneficial for the NBA to take up a role in educating new players.
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