And this is how you end up broke at 38 wondering wtf happened when you're no longer receiving ridiculously big paychecks weekly.
I'm curious what the stats look like for former PL footballers going broke vs those in the NFL/NBA/MLB or even MLS.(Though, I'm sure that former MLS players never go broke since the pay is so low; no guys live beyond their means).
He very well might squander his career earnings but at the same time it's not unreasonable for a guy making $3 million or so a year to buy a car like that (if he bought it).
how much is that going to taxes? Isn't it supposedly most athletes actually lease? But we assume they buy. Same with rappers. "the image"
Different tax rates for different countries, but the rule of thumb is that it's a bit over a third. Add in the agent's percentage and they players pocket about 50% of the headline . And you're right about leasing: everyone leases/takes a bank loan/does hire-purchase, even the rank-and-file proles like us buying our used car. Why wouldn't they? And, as you and the article pointed out, the whole argument is predicated on the idea that he bought it at all: just as/more likely that he's renting it for the off-season.
Assuming he even bought the car, one car won’t take you down. It’s the guys who buy 5-6 cars at a time who go broke.
No, the guys who end up broke either get that way because they bought Rolls for everyone they know, or, more commonly, because they thought they were as good at investing as they were at sports.
They usually go broke from buying all those million dollar houses and not being able to pay the property taxes once they lose their NFL income
There's an ESPN 30 for 30 about this very subject. It's quite fascinating. It's everything that's been said here and more. One athlete was sent a bill for a million dollars by his parents for raising him to be a pro athlete. There was an American Football player who told his wife that they would have to sell their house and down size because he wanted to retire and the taxes on their house would kill them financially. She threatened to divorce him and take everything. These guys are also expected to pay for everything and pay full price. There are no more deals because they can "afford" it.
So many excuses, and lack of accountability for your own actions. - Dude chose the wrong girls to married - No one forces them to buy million dollars homes; that they can no longer afford after their playing days - No body put a gun to their head and tell them to pay retail. They need to learn to negotiate, and walk away. There are plenty of sellers/dealers out there that would love to earn their business and take their money Instead of claiming victim when they go broke and bankrupt, they need to own up to their idiotic actions and live with those consequences. What these guys need is less bling, fancy cars, homes; instead get themselves some Finance 101 lessons and hire a credited and trust worthy financial adviser. I don't see guys like Elway, Peyton, Magic, Jordan, Shaq, or Brady going bankrupt. And why is that?
It’s not what you make, it’s what you save. Compounding interest from making millions at a young age would be immense over a lifetime if you don’t blow it on frivolous crap
And I wish people stop playing the 'race' card every damn day. Get a job, work, save, and obey the laws where you live. Do that and you will mostly enjoy a good life. And this is coming from a minority in this country. I don't expect free hand outs, I like to earn what I have.
Getting rich young sounds like a heartbreaking experience to me. Discovering that your friends and relatives for the most part see you as a cash cow, before you have the maturity to learn how to deal with that knowledge, is a recipe for disaster. Thank your lucky stars if you didn't become a millionaire as a young person.
Most people are living check to check and can’t handle small sums of money. Magnifying the money normally makes things worse.
Lebron was raised by only his mother and business wise is incredibly astute in his off-court businesses and investments. In general the problem for many of these guys is coming from nothing and suddenly having millions, combined with no experience in personal financial budgeting. Add in giving money away to friends/family and/or buying them things because "they've made it". The NBA has programs to educate rookies about this. I've long thought accounting, budgeting and taxes should be taught in HS. How many HS graduates can even balance a check book? So much curriculum has nothing to do with operating in the real world.
This thread is completely off topic but I love the subject matter. Personal finance courses should absolutely be apart of high school core classes. What’s more important for the modern world, have kids read David Copperfield & Hamlet, or learn about personal finance, budgeting, investing, compounding interest etc before they go and sign up for tens of thousands in student loan debt at 18? There’s a sharp colleague of mine that is 65, but HAS to try and work until 70 to max out on social security as he didn’t start retirement saving until way too late. Sad. I’m 33, my knees, back and head already hurts with the daily work grind, I can’t fathom having to do it for 37 more years. Save young, invest, don’t feel obligated to keep up with the joneses and buy garbage, and you should be okay to actually retire at a decent age
I hear people say things like this a lot. FWIW, my high school did teach this information. We had a social studies course everyone took where we learned about taxes, budgeting, investing, resumes, cover letters, and interview etiquette. We also were required to look into career paths, the degrees we would need for them, their average salary, etc. It wasn’t perfect, but it was valuable. It came as a surprise to me in college that my peers didn’t get the same experience.