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Why do so many NFL players go bankrupt?

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Old 05-04-2010, 11:24 AM   #61
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Re: Why do so many NFL players go bankrupt?

Hey,you can only "make it rain" for so long.

I saw an article that showed the Boat --floating house--that Big Al bought after he signed his deal last yr. Not to mention most of these guys have houses so big that they could have another family living with them and never know it.
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Old 05-04-2010, 11:24 AM   #62
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Re: Why do so many NFL players go bankrupt?

The majority are from a poor backgrounds and were never taught how to save or manage their money.
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Old 05-04-2010, 11:28 AM   #63
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Re: Why do so many NFL players go bankrupt?

IMO if you blow through 40+ million you should have your @$$ whipped.
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Old 05-04-2010, 11:32 AM   #64
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Re: Why do so many NFL players go bankrupt?

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No, no. It's not at all. I have $100 million in the bank, I'll put it in safe investments. It earns 3%, so I make $3 million a year. I can spend $3 million a year and not lose any of my $100 million.

$3 million annually amounts to $250,000 monthly. I can have three big mortgage payments on three big homes throughout the country. I can buy a car each month. I can eat out whenever I want to. It's not hard to budget for that at all.

What's not easy is coming into $100 million. Every single intelligent person on this message board would handle $100 million A LOT better than these moron athletes.
This is the same example i gave my friends & family that you can live off interest and not touch your initial money. I come from poverty still in poverty somewhat actually and i grew up and embraced the hip hop culture myself. By no means, would i blow the amount of money these guys blew. I was broke as a child but if i came up and earned, inherited multimillions of dollars my first thing to do is what can i do to NEVER BE BROKE AGAIN. To me that is common sense but we all know everybody doesn't have that.
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Old 05-04-2010, 11:36 AM   #65
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Re: Why do so many NFL players go bankrupt?

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This is the same example i gave my friends & family that you can live off interest and not touch your initial money. I come from poverty still in poverty somewhat actually and i grew up and embraced the hip hop culture myself. By no means, would i blow the amount of money these guys blew. I was broke as a child but if i came up and earned, inherited multimillions of dollars my first thing to do is what can i do to NEVER BE BROKE AGAIN. To me that is common sense but we all know everybody doesn't have that.
Exactly. I'd think those who come from a low-income background would appreciate money a bit more when they do get their hands on it.
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Old 05-04-2010, 12:06 PM   #66
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Re: Why do so many NFL players go bankrupt?

I can understand Schneed's point. Some, not all, of these guys just blew their money without any intelligent thought whatsoever. If I blew millions of dollars I'd feel like a complete dumbass.
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Old 05-04-2010, 12:12 PM   #67
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Re: Why do so many NFL players go bankrupt?

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I can understand Schneed's point. Some, not all, of these guys just blew their money without any intelligent thought whatsoever. If I blew millions of dollars I'd feel like a complete dumbass.
And I would enjoy doing it!!!

See, this is why your idea of comparative research makes a lot of sense. We both get 2Mill, and then the Warpath can gauge how well we do over the next 5 years.

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Old 05-04-2010, 12:12 PM   #68
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Re: Why do so many NFL players go bankrupt?

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You can be intelligent and make dumb mistakes, even big dumb mistakes.
Agreed. I've made big and little dumb mistakes in life, and I'm educated and consider myself pretty intelligent. It's not the fact that you made the mistake that makes you unintelligent, it's whether or not you learn from it.

If these guys invest in one business that fails, then they go buy 5 houses, then invest in another business that fails, then trust an attorney who swindles them, then they go buy 3 cars, then trust a money manager who swindles them... Well, then they're pretty stupid.

The mistake itself doesn't necessarily make one stupid. Repeating that mistake over and over again however, well that's another story.
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Old 05-04-2010, 12:13 PM   #69
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Re: Why do so many NFL players go bankrupt?

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Me too. It's just young, dumb, and stupid. They have so many enablers and yes men around them, and that doesn't help. Having the best jewelry, hottest cars, and biggest houses is actually pretty much the dumbest way to represent your wealth. Don't get me wrong, if I was making millions a year I would have nice clothes, a nice car or two, and probably more than one house. But I wouldn't be ridiculous about it. These guys have no clue how to live within their means, despite their means being incredibly extensive compared to the rest of the world.

I believe all 4 major US sports have financial counseling available, too. I guess most of these guys didn't hear that memo because the sound system in their $250,000 car was playing too loudly.
Not to mention they have so many clinging friends and family members.
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Old 05-04-2010, 12:15 PM   #70
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Re: Why do so many NFL players go bankrupt?

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Also, a lot of these guys who end up broke genuinely thought they were doing the right thing by investing and diversifying, only to be taken advantage of by attorneys, agents, representatives, etc who fed them BS promises of high returns only to milk them for every cent. Gotta surround yourself with the right people.
Very true.
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Old 05-04-2010, 12:23 PM   #71
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Re: Why do so many NFL players go bankrupt?

You know how when you break a 100 dollar bill it fades away quickly? Lunch here.. socks and underwear there, dinner, whatever.. all of a sudden you're left with 10 bucks and nothing significant? They just do it on a much bigger scale.
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Old 05-04-2010, 12:23 PM   #72
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Re: Why do so many NFL players go bankrupt?

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And I would enjoy doing it!!!

See, this is why your idea of comparative research makes a lot of sense. We both get 2Mill, and then the Warpath can gauge how well we do over the next 5 years.

I'm all for it!

GMScud makes a good point, learning from your mistakes shows intelligence. Unfortunately these guys will probably never be able to regain their level of monetary value once their careers have ended. They were fortunate enough to have been involved in an enterprise that pays extremely well that is now over for them. Let's be honest, not many of them are capable of making that kind of money any other way.
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Old 05-04-2010, 01:04 PM   #73
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Re: Why do so many NFL players go bankrupt?

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No, no. It's not at all. I have $100 million in the bank, I'll put it in safe investments. It earns 3%, so I make $3 million a year. I can spend $3 million a year and not lose any of my $100 million.

$3 million annually amounts to $250,000 monthly. I can have three big mortgage payments on three big homes throughout the country. I can buy a car each month. I can eat out whenever I want to. It's not hard to budget for that at all.

What's not easy is coming into $100 million. Every single intelligent person on this message board would handle $100 million A LOT better than these moron athletes.

You better be prepared to live off less than that chief. Uncle Sam and the state want their cut, which of $3,000,000 assuming you are using interest or dividends, not selling equity is taxed at standard income rates, so there goes 35%, plus SSI, plus state tax, so there is 50% out the door up front.

Oh yeah, did you have that money with an wealth management firm like a Schwab or Jones or Edelman, whoops, there goes another 1-2% in asset management fees, plus the fees from the mutual fund managers where your money is actually invested, which is another 1% minimum.

Wow, your 3% return just turned into a loss, all for a measly $1.5M in net cash flow.

Is it any wonder "rich" people don't put their money in MMA's or CD's. There is no return, which is why most people of "significant" wealth, have personal investment advisors/staff to carefully invest in both securities and equity projects. Holding on to wealth is not as easy as it sounds.

I would be willing to bet if you took a random sampling of 1000 Americans, pulled them off the street and handed them a check for $100M; 75% would be broke in 10 years or less. Most people simply are not prepared to handle that kind of money.
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Old 05-04-2010, 01:13 PM   #74
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Re: Why do so many NFL players go bankrupt?

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You better be prepared to live off less than that chief. Uncle Sam and the state want their cut, which of $3,000,000 assuming you are using interest or dividends, not selling equity is taxed at standard income rates, so there goes 35%, plus SSI, plus state tax, so there is 50% out the door up front.

Oh yeah, did you have that money with an wealth management firm like a Schwab or Jones or Edelman, whoops, there goes another 1-2% in asset management fees, plus the fees from the mutual fund managers where your money is actually invested, which is another 1% minimum.

Wow, your 3% return just turned into a loss, all for a measly $1.5M in net cash flow.

Is it any wonder "rich" people don't put their money in MMA's or CD's. There is no return, which is why most people of "significant" wealth, have personal investment advisors/staff to carefully invest in both securities and equity projects. Holding on to wealth is not as easy as it sounds.

I would be willing to bet if you took a random sampling of 1000 Americans, pulled them off the street and handed them a check for $100M; 75% would be broke in 10 years or less. Most people simply are not prepared to handle that kind of money.
Investment ROIs on funds like money market or bonds are typically net of fees. And I was assuming gross income of $3 million, which even after taxes can support 3 houses and cars galore.

22% of America still approved of George Bush, even at his lowest approval point. There's a significant % who don't graduate from high school. I think it's fair to say a big portion of Americans aren't very intelligent.

I don't know about your 75% number, but I get your point. It's an indictment on the intelligence of the general populace more than anything.

If you piss through $100M in 10 years or less, I'm sorry, you ain't smart.
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Old 05-04-2010, 01:28 PM   #75
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Re: Why do so many NFL players go bankrupt?

1) Eight baby's mummas

2) Cocaine

3) Booze

4) Gambling

5) Spinning rims on their toaster ovens

6) Just being stupid.

I think that about narrows it down. Actually, you can probably roll them all up into just being stupid.
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