OT: Seven rich athletes who lost their fortunes

[steve_steamer]

i question some of this as a media story, gambling money i see its gone..but buying a 20 million dollar house doesnt mean you just lost 20 million dollars..even if it costs so much to keep it..you can sell it and your not "broke" as this story claims.

[Scott Carefoot]

The psychology of how this happens is pretty obvious. People get used to a certain standard of living and are unable to adjust when they're not making millions of dollars per year anymore. Everyone likes to judge athletes who make these mistakes but I can assure you that most of the "judgers" would make the exact same mistakes.

Think about it this way: In all these sports, aren't athletes trained to think "one game at a time"? That mentality causes you to just think about the present, not the future. Star athletes are so accustomed to wealth and adulation that they probably just assume that money will keep rolling in from other means (their record label, their movie studio, whatever other harebrained business they've wasted their money on). Of course, the only ex-athletes who make even close to the money they used to make are the ones who become broadcasters, and that's a very small minority.

If these pro sports leagues aren't placing a priority on educating their players on financial responsibility, they're doing them a disservice. Then again, there's only so much you can do. Some people are going to go down that drain no matter how hard you try to educate them. Iverson will probably be broke within a few years.

[J Dilla]

Remember Matt Bonner talking about his Pontiac? I laughed at it yesterday, but today I realize he's one smart motha..

[Scott Carefoot]

Remember Matt Bonner talking about his Pontiac? I laughed at it yesterday, but today I realize he's one smart motha..

I think I made fun of him as well in the past, but experience has taught me that he is, as you say, a smart motha. I think he's pretty realistic about the fact that his NBA ceiling is limited, and he's not a big enough star to expect to make big money from other means when he can't get an NBA job anymore. In fact, I propose that when his NBA playing career is over, they should hire him to preach fiscal responsibility to players. None of them will listen to him because he's Matt Bonner, but they can at least claim they made the effort.

[Hendrix]

I think this is just a culmination of a lot of things.

A lot of these players probably hadn't been brought up learning good money skills from their parents. It's a shame that this isn't taught in high school. So insted of going over a budget, they develop a paycheque to pay cheque mentality which they stick with..

Also kind of on the same subject of not really learning money skills. These guys don't net near as much as the contract they sign. Player "x" might sign a contract for $100 million, and be spending each pay cheque like he has $100 million (giving to family, friends, cars, food etc... ). But really he might only net $40 million from that $100mm contract. That could catch up on someone in a hurry that isn't aware in the slightest on taxes, agent fees etc...

I'm pretty sure these guys are taking classes to deal with money managment. But really how much is involved? Is it a course they sleep through once when they are a rookie, and don't even remember when they are a few years into the league?

If the league is really trying to help these guys, but they just don't care; Maybe they need to contibute more to a pension fund to save these guys from themselves. Surely they could live off half their pay now, and then put the remainder into a pension.

[darth_federer]

Those nba mandated classes are a joke. Didnt guys like Beasley get high during those sessions?

If I was an owner, I would make it mandatory to set up appointments and make sure these guys go to financial advisory sessions. Its a shame these guys do bankrupt.

[J Dilla]

Those nba mandated classes are a joke. Didnt guys like Beasley get high during those sessions?

If I was an owner, I would make it mandatory to set up appointments and make sure these guys go to financial advisory sessions. Its a shame these guys do bankrupt.

You're thinking Chalmers.

[ruckus]

Most athletes, like 90% of the rest of the western population don't want to think about managing their money. They want it all to be automatic. Automatic RRSP investments, automatic bill payments, etc.

Best piece of advice I've ever received is to "mind your business". Treat your finances like you would a business.

[LittleOzzy]

A lot of you guys are saying the owners should send them to more classes to be financially responsible but is it really any of their concern?

I know my boss doesn't care how much money I spend, I doubt you're boss cares, so why should it be the responsibility of the NBA owners?

I agree that something should be done, but in the long run the NBA and it's owners can't tell the players not to spend their money.

[darth_federer]

A lot of you guys are saying the owners should send them to more classes to be financially responsible but is it really any of their concern?

I know my boss doesn't care how much money I spend, I doubt you're boss cares, so why should it be the responsibility of the NBA owners?

I agree that something should be done, but in the long run the NBA and it's owners can't tell the players not to spend their money.

If youre giving somebody millions and expect them to represent your community, I think its only fair you also provide them with some extra help like counseling for finance and life.

[Alfred]

This is why 5 years after retiring, Matt "take the TTC to work every day" Bonner is going to be better off than most of the guys in the league.

[draft]

The reason Bonner is thrifty is because he knows he's not that good. He could be out of the league real quick. Guys like Pippen, Walker and Sprewell were stars in the league so they're in a different situation.

[Alfred]

The reason Bonner is thrifty is because he knows he's not that good. He could be out of the league real quick. Guys like Pippen, Walker and Sprewell were stars in the league so they're in a different situation.

I don't think it matters why he's thrifty, just that he is. He's probably going to hang on to his money a lot longer.

[SDM]

A lot of you guys are saying the owners should send them to more classes to be financially responsible but is it really any of their concern?

I know my boss doesn't care how much money I spend, I doubt you're boss cares, so why should it be the responsibility of the NBA owners?

I agree that something should be done, but in the long run the NBA and it's owners can't tell the players not to spend their money.

I disagree. Financial problems almost always affect performance.

[Hendrix]

A lot of you guys are saying the owners should send them to more classes to be financially responsible but is it really any of their concern?

I know my boss doesn't care how much money I spend, I doubt you're boss cares, so why should it be the responsibility of the NBA owners?

I agree that something should be done, but in the long run the NBA and it's owners can't tell the players not to spend their money.

It wouldn't really be the owner sending them to classes, so it doesn't matter if it's his concern. If players attended more classes it would be due to the players accosiation pushing for it. If the players themselves think it's in their collevtive best interest. And if they did, they would be the ones paying for it in one way or another (although I'm sure they'de make it back 100x over if they properly utilized the knowledge).

Really though I'm pretty sure both the players, and the owners would benifit from not having this situation.

[dirtybird]

This is hardly surprising and has been out there for quite some time. Many pro athletes don't get a good education and can get easily suckered out of their money. You know the line about a fool and their money... Some combination of supporting an entourage, trying to care of everyone back home, excessive spending (i.e. who really needs 10 cars), divorce/child support, poor investments, and excessive spending again all help to make it very possible. Notice how few athletes go broke while playing, that probably gives us an idea that they don't adjust to their situation. That's why if there's a lockout, the owners will win hands down.

[beno]

Well at least they still have their egos

[onemanwolfpack]

The reason Bonner is thrifty is because he knows he's not that good. He could be out of the league real quick. Guys like Pippen, Walker and Sprewell were stars in the league so they're in a different situation.

The "situation" Pippen, Walker and Sprewell are in is more aptly named bankruptcy. Matt Bonner is "thrifty" because he lives within his means? Matt Bonner is clearly his own person and who knows maybe he's thrifty because he doesn't want to be doing the shimmy in Puerto Rico when he is 40

[hkr]

It's probably worth it to revisit the "Dubious moments" postings:
http://theflagrancy.typepad.com/the_fla ... or__2.html

October 1998: John Wallace Speaks Out on NBA Lockout
...

In my mind the lockout was over the moment Toronto Raptor John Wallace was forced to defend the players' position for more money on TSN's "Off The Record." The reason why John Wallace needed more money?

"You'd be surprised how quickly you can spend 4 million dollars."

Not only would this declaration go a long way toward alienating the common fan but also provide the only moment in history where a 6 foot 8, 230 pound black man looked sheepish while be berated by a professional curler.
...

[ItsDanger]

It would be interesting to see the ties between their agents and the 'financial' planning and expense side. I suspect there is a connection. Otherwise, they're not taking care of their clients.