The tragic tale of American professional athletes rising from poverty to fame, only to squander their earnings and file bankruptcy after retiring is becoming all too common. Professional athletes in popular sports in America can make anywhere from hundreds of thousands of dollars to tens of millions. Although their playing careers are shorter than those of other professions, many of these athletes make enough money to last them the rest of their lives.
A report in 2009 from Sports Illustrated estimated that 78 percent of NFL players are either bankrupt or “facing serious financial stress” within two years of ending their playing careers, and 60 percent of NBA players are completely broke within 5 years of retirement.
“When a 21-year-old kid get such big numbers, they go out and buy the big house and the fancy car,” said Robert Luna of SureVest Capital Management in Phoenix. Luna has served as a financial advisor to professional athletes, such as Arizona Cardinals offensive lineman Levi Brown. “Before they know it, they are out of the league and their income drops significantly.”
Another problem is that because they are high-profile figures, athletes will have friends, relatives and organizations asking for money.
“All sorts of people and advisers start calling,” said Brown, who was a high-profile fifth overall draft selection in 2007. “In any business where you make a lot of money, there are people trying to get their hands on it.”
Young athletes should follow Brown’s lead and hire financial advisors. Please contact our firm for a free consultation if you are struggling with debt.
Benjamin Brand Services- Chicago bankruptcy lawyer .