Comments on: Why Athletes Still Go Broke

By: Mr. Will

Mr. Will — Wed, 03 Mar 2010 14:00:14 +0000

Note to self…

If I hit a huge windfall, I will:

1.Remain a loner and have no hangers-on.

2.Keep 1 automobile and no more.

3.Remain sober and not party.

4.Not answer to false friends.

5.Keep it in the family and even then be leery.

6.Go to school and learn about financial management and creating a good portfolio.

7.NOT buy into a get rich scheme business with someone unscrupulous.

8.Not let anyone use my name or likeness for the purpose of being exploited.

9.Carry a condom with me wherever I go to alleviate the chance of a frivolous lawsuit.

10.Not play into the penis envy game.

11.Like Don Ameche once said, 'Live within your means.'

12.Stay busy and not trust anyone with my financial dealings.

13.Get involved in philanthropy. Rather than waste money on needless partying and that alleyway, I will pay it forward to a good cause.

14.Call my ex and laugh out loud every five minutes (joke)

15.Make monthly appearances on Maury Povich and exclaim 'I AM NOT THE FATHER!'

That's what I would do…now for that windfall…

By: Jason

Jason — Wed, 03 Mar 2010 13:40:06 +0000

This is a great article. I can understand Mike Tysons going broke b/c Don King got involved and Mike has never been accused of being a Rhodes Scholar! I thought Evander was a little more in tune with reality than Mike, but now I see how wrong I was!

By: Frank

Frank — Thu, 11 Feb 2010 20:02:37 +0000

Very good article. Rarely do you hear of a success story like Larry Holmes for instance, a man that invested wisely in his hometown of Easton and looks like he's comfortably living within his means. Sports teams might do well to hold 'rookie financial camps' to at least present the tools to first time big contract landers. What they do after that is up to them. Another good camp to have: Conceal/Carry Gun Laws across the States. But that's another topic.

By: Robert Brady

Robert Brady — Thu, 11 Feb 2010 19:44:55 +0000

My advice: Get some savings accounts that earn interest. Put money in them.

By: mgl

mgl — Fri, 17 Apr 2009 21:53:45 +0000

This is really a great article. It gives you a pretty good picture of how it happens.

By: fran

fran — Fri, 17 Apr 2009 15:25:48 +0000

Poor advice and think that just because you have a great contract that you can pay for anything. Reality is they live way above what their needs are. I am unemployed and would like to make what they make for 1 year. I would be set for life. Their mentality is flaunt it if you got it and not planning for their future. Most of them should take a course in money management so that even if someone else is managing their money they would be able to grasp what is happening to their assets.

By: Matt P

Matt P — Fri, 17 Apr 2009 14:53:14 +0000

Sprewell is a scumbag who should have been in prison and fined his entire contract price. He should have been broke before his Knicks contract was even up.

By: Elbert Smith

Elbert Smith — Fri, 17 Apr 2009 14:28:37 +0000

Interesting piece. Athletes fall prey to many Looters and Moochers.

By: bcuban

bcuban — Fri, 17 Apr 2009 13:53:48 +0000

Hey Teddy-I am curious if you have even read the first paragraph of the article. I wrote this almost a year ago. Thanks for playing though... And by the way , you are wrong. His home was foreclosed. http://www.jsonline.com/sports/statecolleges/2947...

By: Velvet Teddy

Velvet Teddy — Fri, 17 Apr 2009 13:21:37 +0000

I am curious if you have even read the first paragraph of your link regarding Sprewell's "multi million dollar mansion"? If you had you would know that its worth a little over 400k and he owes a little over 200k on it. I grew up near this place and it is an unimpressive, older, ranch house that as far as I can tell he used to keep his dogs and spare cars at. Not live in. Also , there has been recent news locally that he has payed off that note at least 8 months ago. Dont get me wrong, he wastes plenty of money, but he currently lives in a pretty nice "mansion" elsewhere in Milwaukee.

By: adjustidohm

adjustidohm — Fri, 17 Apr 2009 05:08:27 +0000

with the other portion of the money, I would invest it in my friends to start businesses of their own…or give them the $$$ for their operating costs/research and development…so on and so forth…after they showed me a proper business plan. Lastly, I would set aside another portion of it, that I couldn't touch for 10 years, that would pay my bills for 10 more years. The goal would be to tie up the money so I couldn't spend it…knowing myself! At the end of this 20 year period…if nothing had matriculated…I'd just continue being an acsetic…living the simple life. BUT, that's just me!

By: adjustidohm

adjustidohm — Fri, 17 Apr 2009 05:08:21 +0000

I''ve thought long and hard about this. Not about all these people who screwed up royally, but what would I do, if put into the same situation. If for instance, I sold a million books and then had money to play with. What I would do or what maybe they should have done is??? set aside enough money [a certain %] to pay your bills for 10 years hypothetically at a comfortable rate. STOP Keeping up with the jones and living way beyond my means… that just seems stupid to me! I watched my parents do it [living way beyond my means] and I'm not going to follow in their footprints! Materialism at is finest, doesn't really matter. He who dies with the most toys, still dies!

By: Milan N

Milan N — Fri, 17 Apr 2009 04:22:31 +0000

Some athletes appear to be at the other end of the spectrum. Every once in a while you hear things like athletes saving their per diems, such as some of the guys mentioned in this article:

http://www.rockymountainnews.com/drmn/nba/article…

I can remember when Vince Carter's mother came to visit him in Toronto (while he was still with the Raptors) and stayed at his condo. I am not sure that he was being fully serious, but when asked why he did not put her up somewhere else, he stated that hotels are expensive.

By: Jason M. Pond

Jason M. Pond — Fri, 17 Apr 2009 03:25:09 +0000

My work with private clients including professional athletes always rings true to a solid foundation that is seldom ‘taught’ when approaching “large liquidity events” like a contract signing.

Business Consulting, Financial Planning, Estate and Tax Management, Legal Counsel, Risk Management and Insurance Consultation, Medical and Rehabilitation Specialists, Public Relations, Philanthropic and Civic Responsibility, Spiritual Counsel, etc. –The problem is that where ethics, attitude and “new money” come into play -there are always people waiting in line to exploit those that are easily taken advantage of. On the opposite side of the equation, there are the respectable, ethical and tenured specialists that are the gold standard in their given profession -and hold a respective track record in protecting athletes and their families.

There are plenty of choices and tenured relationship-driven specialists to be found.

And to piggy back on Woy’s term “Life Planning” -it’s something that should be incorporated at the high school and college level, driving the ‘responsibility factor’. -That one is all mine…

JMP

Jason M. Pond
HUB International
Private Client Group

Jason.pond@hubinternational.com

Insurance & Risk Management Services