For most young athletes, the dream is to bring in a fortune playing the sport that they love.  But, what comes next?  The plan for so many of these flashing stars ends there, with no further goals or aspirations on their mind.  This truncated dream results in a riches to rags situation for a vast majority of these professional athletes.  A 2014 study reported that 78% of NFL players declare bankruptcy within five years of their retirement.  Meaning an NFL player is about 245% more likely to file for bankruptcy than any other American, which is astonishing as the average professional football player makes $1,847,750 more than the average American.  The cause for these bright lights to burn out so quickly before our eyes is the failure to teach aspiring athletes personal finance or money management.

            The NFL throws large sums of money into the hands of twenty-two year old kids, and expects them to figure it out for themselves.  The money usually goes straight to supporting a lavish uncontrolled lifestyle that cannot be maintained.  No matter what caliber the athlete is at, the first contract they sign with the NFL will most likely be the most money they’ve ever seen.  Former Detroit Lions offensive tackle Lomas Brown stated, “You think you’re invincible and you’re going to play the game forever.   You don’t think of planning an exit strategy”.  Without thinking of the future, the newfound wealth is distributed to partying, cars, jewels, mansions, etc.   For example, the recently retired Warren Sapp has already claimed to be $6.7 million in debt after a career that brought in over $82 million.  Within Sapp’s assets were 240 pairs of Air Jordan sneakers and a lion skin rug.  Sapp is just one example of many players who fall victim to indulgent spending, and then lose it all after their career ends.

            As players enter the profitable league they are exposed to an infinite amount of new experiences and opportunities.  Many times a player becomes a provider for numerous friends and family members who look at the player’s success as a way to pull them up in the world.  Possible business ventures and investment deals are brought to the attention of these young athletes.  The NCAA has no personal finance classes required of its student-athletes.  No one has provided them with the right financial knowledge to approach these deals with the ability to handle them correctly.  This leads to players losing their fortunes in bad deals or to be buried in bills for their expansive network of friends and family, whom they think they can help.   Crippling business ventures in cosmetics and a Hard-Rock-Café knock off chain caused Rhagib “Rocket” Ismail to lose his small fortune of nearly $18 million. 

These young adults are leaving college with no finance experience or any idea of how to manage their copious funds.  Too many of these athletes believe their wealth is never ending and they take on more than they can manage.  Young athletes need to be educated on how to effectively use their newly accumulated wealth in order to allow them to function financially beyond their careers.  The NCCA and NFL must provide lectures and services on money management, so that they can help reduce the number of bankrupt individuals coming out of their league.    


Work Cited:

http://www.munknee.com/78-of-nfl-players-go-bankrupt-within-5-years/

http://www.ibtimes.com/why-do-so-many-athletes-go-broke-799155

http://work.chron.com/much-money-nfl-player-make-year-2377.html

http://www.deptofnumbers.com/income/us/

http://news.uscourts.gov/bankruptcy-filings-down-11-percent-march-2014