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View Full Version : NFL player bankruptcy rate: 78% within to years of retirement


Taco John
03-13-2011, 11:58 AM
The 78 percent number (i.e., 78% of NFL players go bankrupt within two years of retirement) is buoyed by the fact that the average NFL career lasts just three years. So, figure a player gets drafted in 2009, signs for the minimum and lasts three years in the league: He will have earned about $1.2 million in salary. Factor in taxes, cost of living and the misguided belief that there will be more years and bigger paydays down the road, and it becomes a lot easier to see how so many
players struggle with money after their careers end.

http://sports.yahoo.com/nfl/blog/shutdown_corner/post/Why-do-so-many-NFL-players-go-bankrupt-?urn=nfl-190555

OBF1
03-13-2011, 12:00 PM
They go to college for free, get an education and a job after football, no need to go BK.

I do not feel bad for any person that makes 1.5 mil in a few years and throws it all away.

Tombstone RJ
03-13-2011, 12:14 PM
The 78 percent number (i.e., 78% of NFL players go bankrupt within two years of retirement) is buoyed by the fact that the average NFL career lasts just three years. So, figure a player gets drafted in 2009, signs for the minimum and lasts three years in the league: He will have earned about $1.2 million in salary. Factor in taxes, cost of living and the misguided belief that there will be more years and bigger paydays down the road, and it becomes a lot easier to see how so many
players struggle with money after their careers end.

http://sports.yahoo.com/nfl/blog/shutdown_corner/post/Why-do-so-many-NFL-players-go-bankrupt-?urn=nfl-190555

That's too bad. Doesn't the NFL also provide a rookie symposium on things like money management?

SpringStein
03-13-2011, 12:26 PM
Major reason is not knowing difference between to and two. ;)

Beantown Bronco
03-13-2011, 12:31 PM
What do you expect from guys that can't figure out how to use a free taxi service when they go out and get drunk? Basic intelligence and common sense is clearly lacking in the majority of them. Understanding basic finances and budgeting? Good luck...

gyldenlove
03-13-2011, 12:40 PM
The major problem here is that many rookies do not only have to pay their own cost of living, they also have to buy stuff for their parents, pay their agents, publicists and entourage. If you have to feed 5 or 6 people on 500k a year your money will go fast.

baja
03-13-2011, 12:41 PM
Them posses ain't cheap.

broncos-rock
03-13-2011, 12:43 PM
Thats why guys like Rod Smith have my respect!!

baja
03-13-2011, 12:44 PM
Most of these kids come out of poor environments can you imagine the pressure on them to take care of 'family'?

There must be a line a block long behind some of these guys wanting to "borrow" some money.

rbackfactory80
03-13-2011, 12:50 PM
Right...So the obvious answer is to throw more money at them they that will burn in the same time period.

The smart players will do whats right with the money, they will turn that 1.5 million into a great help in having a comfortable life. The others will burn it up at the club.

brncs_fan
03-13-2011, 12:53 PM
I have heard from several former players about how the new guys in the league see the vets with the bling and the cars and they want those things too right away. Even guys that make it past the three year mark start off in such a hole that they never really recover from it.

Ray Finkle
03-13-2011, 01:32 PM
Learn
To
Invest

You can't do that, you don't deserve your cash....

KipCorrington25
03-13-2011, 01:36 PM
The entire full ride scholarship, catered too, put on a pedestal, get preferential treatment model just doesn't work well when you're 26 years old and need a new career.

Merrill Lynch isn't hiring too many guys with neck tats I'm not thinking.

missingnumber7
03-13-2011, 01:52 PM
How many of those guys came from nothing in the first place?

cutthemdown
03-13-2011, 01:56 PM
If they didn't buy expensive cars, houses, jewelry this wouldn't happen.

Archer81
03-13-2011, 02:21 PM
The major problem here is that many rookies do not only have to pay their own cost of living, they also have to buy stuff for their parents, pay their agents, publicists and entourage. If you have to feed 5 or 6 people on 500k a year your money will go fast.

Then maybe they should cut back on what they eat. Feeding 5 people on 500k?...What are they eating? Kobe beef in everything?


:Broncos:

baja
03-13-2011, 02:26 PM
Let them pay taxes at the corporate rate and they will have plenty of money

epicSocialism4tw
03-13-2011, 02:29 PM
Embarrassing.

Tombstone RJ
03-13-2011, 02:49 PM
a lot of these guys just don't know how to say "no" to the people they grew up with... hey, at least they have a good time for a few years...

gyldenlove
03-13-2011, 03:24 PM
Then maybe they should cut back on what they eat. Feeding 5 people on 500k?...What are they eating? Kobe beef in everything?


:Broncos:

Don't knock braised Kobe fillet with truffles marinated in chandon, it works for every meal and if not then that is nothing a few metric tons of cocain won't fix.

Miss I.
03-13-2011, 03:28 PM
Maybe they are blowing it on all the tiger blood so they can keep winning. ;D

epicSocialism4tw
03-13-2011, 03:30 PM
Maybe they are blowing it on all the tiger blood so they can keep winning. ;D

If by "tiger blood" you mean "strippers", then I think you're spot on.

broncogary
03-13-2011, 04:16 PM
Let them pay taxes at the corporate rate and they will have plenty of money


Do you know what the corporate rate is?

baja
03-13-2011, 04:22 PM
Do you know what the corporate rate is?

Before or after the loop holds?

broncogary
03-13-2011, 04:23 PM
Before or after the loop holds?

I think you mean loopholes, and you're acting like the same deductions aren't available to individuals.

baja
03-13-2011, 04:30 PM
How Exxon paid zero taxes in 2009 By MERLIN FLOWER for OIL-PRICE.NET, 2010/04/15
Here's a simple question in Economics: If Exxon Mobil, the largest U.S. energy company, made a profit of $35 billion, and if the income tax paid is $15 billion at a tax rate of 47%, how much did it pay to the IRS? The answer is, according to a report published recently in Forbes magazine, zero.

How come the results when 47 percent of the profit had been paid as taxes? Well, it helps to have wholly owned subsidiaries domiciled in countries such as Bermuda, Cayman Island and Bahamas to pipeline cash flows from operations in Azerbaijan, Abu Dhabi and Angola.

The report, as expected, created a huge outcry in the media as well as among the general public when it detailed the taxes paid by corporations in the US last year. Truly, Exxon is not alone. GE submitted a mammoth 24,000-page tax return and managed to avoid income tax for profits worth $10.3 billion last year.

Likewise many companies though benefiting from corporate welfare in the U.S., use tax shelter practices to send their earnings overseas. According to a report by the Government Accountability Office (GAO), 2008, two out of three US companies paid no federal income taxes from 1998 through 2005. The report had covered 1.3 million corporations in the US with collective sales of $2.5 trillion.

So to the important question: Is it illegal to do so? No, not at all, in fact, it's well within the purview of law. Under Net Operating Loss Carry forwards (NOLs), if a company makes a profit of, say, a million this year but incurs a loss of a million the next year, the previous year's loss could be tallied against the gain. Thus a company could get a zero tax liability in the US. It's the same story in the case of foreign tax credit too.


http://www.oil-price.net/en/articles/How-Exxon-paid-zero-tazes-in-2009.php

broncogary
03-13-2011, 04:33 PM
Individuals can have NOL's, too. It means you really lost the money at some time.

Tombstone RJ
03-13-2011, 04:34 PM
How Exxon paid zero taxes in 2009 By MERLIN FLOWER for OIL-PRICE.NET, 2010/04/15
Here's a simple question in Economics: If Exxon Mobil, the largest U.S. energy company, made a profit of $35 billion, and if the income tax paid is $15 billion at a tax rate of 47%, how much did it pay to the IRS? The answer is, according to a report published recently in Forbes magazine, zero.

How come the results when 47 percent of the profit had been paid as taxes? Well, it helps to have wholly owned subsidiaries domiciled in countries such as Bermuda, Cayman Island and Bahamas to pipeline cash flows from operations in Azerbaijan, Abu Dhabi and Angola.

The report, as expected, created a huge outcry in the media as well as among the general public when it detailed the taxes paid by corporations in the US last year. Truly, Exxon is not alone. GE submitted a mammoth 24,000-page tax return and managed to avoid income tax for profits worth $10.3 billion last year.

Likewise many companies though benefiting from corporate welfare in the U.S., use tax shelter practices to send their earnings overseas. According to a report by the Government Accountability Office (GAO), 2008, two out of three US companies paid no federal income taxes from 1998 through 2005. The report had covered 1.3 million corporations in the US with collective sales of $2.5 trillion.

So to the important question: Is it illegal to do so? No, not at all, in fact, it's well within the purview of law. Under Net Operating Loss Carry forwards (NOLs), if a company makes a profit of, say, a million this year but incurs a loss of a million the next year, the previous year's loss could be tallied against the gain. Thus a company could get a zero tax liability in the US. It's the same story in the case of foreign tax credit too.


http://www.oil-price.net/en/articles/How-Exxon-paid-zero-tazes-in-2009.php

This is another reason the IRS is a joke and the entire federal tax system is a joke. Who pays the most taxes--you and me!! (the middle class). DC is in the pockets of the lobbyists so nothing is going to change about this crap.

Gort
03-13-2011, 04:36 PM
Before or after the loop holds?

http://www.taxfoundation.org/publications/show/23015.html

This new study shows that most American states tax job providers at higher rates than any other developed country in the world.

If you click on the link, it will show a state-by-state break down that adds each state's corporate taxes on top of the federal corporate tax rate. When you do this, it shows that half of the states in this country have a higher rate than any other nation. Even in states with fairly low state-level corporate taxes states like Nevada, South Dakota, and Wyoming the corporate tax rate is still higher than France and 25 other major countries. Take a gander:

- 25 states have a combined corporate tax rate higher than top-ranked Japan.
- 35 states have a combined corporate tax rate higher than third-ranked Germany.
- 46 states have a combined corporate tax rate higher than fourth-ranked Canada.
- All 50 states have a combined corporate tax rate higher than fifth-ranked France.

The study comes to a not-so-shocking conclusion: "If federal lawmakers are serious about making the U.S. corporate tax system more competitive globally, they will have to partner with state officials to lower the nation's overall corporate tax burden."

http://www.taxfoundation.org/blog/show/23022.html

In a related study by three prominent economists at the Tax Foundation, employees suffer most when their corporate employers are forced to pay high corporate taxes. This basically runs counter to the theories that have prevailed in American politics for decades ... that corporate taxes hurt investors. But this study found that workers bear 70% of the burden of corporate income taxes.

from: http://boortz.com/nuze/200803/03212008.html

baja
03-13-2011, 04:37 PM
Individuals can have NOL's, too. It means you really lost the money at some time.

Riiiight! Exxcon lost so much money in 2009 that their fair share tax bill was zero.

baja
03-13-2011, 04:38 PM
they must deduct all them executive bonus'.

broncogary
03-13-2011, 04:38 PM
Riiiight! Exxcon lost so much money in 2009 that their fair share tax bill was zero.

Don't worry, their return gets audited every year.

baja
03-13-2011, 04:47 PM
Don't worry, their return gets audited every year.


http://1.bp.blogspot.com/_xlQ318vZsgI/SyIBkcZbpjI/AAAAAAAAAHw/enVr6LQS7D4/s320/monkey-computer.jpg

eddie mac
03-13-2011, 05:07 PM
Maybe they should manage it better. In this day and age no job is secure and you have to protect yourself from financial uncertainty.

footstepsfrom#27
03-13-2011, 05:35 PM
The 78 percent number (i.e., 78% of NFL players go bankrupt within two years of retirement) is buoyed by the fact that the average NFL career lasts just three years. So, figure a player gets drafted in 2009, signs for the minimum and lasts three years in the league: He will have earned about $1.2 million in salary. Factor in taxes, cost of living and the misguided belief that there will be more years and bigger paydays down the road, and it becomes a lot easier to see how so many
players struggle with money after their careers end.

http://sports.yahoo.com/nfl/blog/shutdown_corner/post/Why-do-so-many-NFL-players-go-bankrupt-?urn=nfl-190555
The "average" NFL career lasts four years if memory serves, but whether it's three or four, the reason is because all the first year cuts get factored into that. A player who actually makes a team and is capable of playing generally plays longer than that. It's not like they're worn out in three or four years if they can play. These guys need more than a financial planner to avoid this road to bankrupcy, they need some self discipline, but try telling this to a 22 year old who just made his first million.

baja
03-13-2011, 05:44 PM
The "average" NFL career lasts four years if memory serves, but whether it's three or four, the reason is because all the first year cuts get factored into that. A player who actually makes a team and is capable of playing generally plays longer than that. It's not like they're worn out in three or four years if they can play. These guys need more than a financial planner to avoid this road to bankrupcy, they need some self discipline, but try telling this to a 22 year old who just made his first million.


<iframe title="YouTube video player" width="480" height="390" src="http://www.youtube.com/embed/FBPXUurumDU" frameborder="0" allowfullscreen></iframe>

broncogary
03-13-2011, 06:03 PM
http://1.bp.blogspot.com/_xlQ318vZsgI/SyIBkcZbpjI/AAAAAAAAAHw/enVr6LQS7D4/s320/monkey-computer.jpg

Family photo? :thumbsup::thumbsup: Sorry I couldn't argue with you. I had to go hit range balls. I've got my priorities in order. :):)

BroncoMan4ever
03-13-2011, 11:16 PM
The 78 percent number (i.e., 78% of NFL players go bankrupt within two years of retirement) is buoyed by the fact that the average NFL career lasts just three years. So, figure a player gets drafted in 2009, signs for the minimum and lasts three years in the league: He will have earned about $1.2 million in salary. Factor in taxes, cost of living and the misguided belief that there will be more years and bigger paydays down the road, and it becomes a lot easier to see how so many
players struggle with money after their careers end.

http://sports.yahoo.com/nfl/blog/shutdown_corner/post/Why-do-so-many-NFL-players-go-bankrupt-?urn=nfl-190555

that is the players fault. just about anyone who makes money should know how to handle it. the NFL actually has classes and orientation that they give to the incoming rookies on proper money management. every NFL player in the league has heard these messages. the fact that they go broke is no ones fault but their own

Jason in LA
03-13-2011, 11:36 PM
That's too bad. Doesn't the NFL also provide a rookie symposium on things like money management?

They do, but how many of them are going to use the information given to them? Not many of them.

Jason in LA
03-13-2011, 11:38 PM
Thats why guys like Rod Smith have my respect!!

There was an article that stated that Rod Smith had bought three suits early in his career, and those were the same three suits that he had late in his career.

I'd imagine that he's still doing well for himself.

Fedaykin
03-13-2011, 11:44 PM
If you have to feed 5 or 6 people on 500k a year your money will go fast.

not sure if serious.....

cutthemdown
03-14-2011, 12:00 AM
The list of players who made millions, or hundreds of thousands of dollars etc etc, that never were crap, didn't try hard, did drugs etc etc is long.....very long.

Basically a union got guys who deserved nothing a ton of money, and ones who deserved a ton of money only a lot of money.

Seriously is Graham worth 25 million over 4-5 yrs then Peyton Manning worth 200 million.

cutthemdown
03-14-2011, 12:01 AM
That's the same problem with teachers unions. Bad teachers get too much. Average teachers get about what they should, good teachers are under paid.

Miss I.
03-14-2011, 12:05 AM
not sure if serious.....

I concur. I seem to recall my Dad had to feed, house, and clothe 6 of us every year living in Southern California, making I would guess much less than $500K in the early 80s as an engineer, yet somehow he managed not to go bankrupt and put us through college even. Crazy that.

So I am just guessing the previous remark was sarcasm. It's so hard without a smilie to be sure though. ;D

BroncoMan4ever
03-14-2011, 12:06 AM
They do, but how many of them are going to use the information given to them? Not many of them.

then they are idiots and deserve to be broke. how can and why should anyone feel sorry for such stupidity?

realistically if you got hired at a job where they told you when you were hired that more than likely within 5 years your career (that will pay you extremely well) is going to be over, and there won't be another big payday coming in after you are done. Would you go out and buy a 15 room mansion, 10 cars, bling, drop hundreds on strippers and hookers and all the other extravagent unnecessary stuff these idiots buy?

no the average person would realize they need to be smart. pay off your debts, get a nice house that can house your family(you don't need a house that has to be shown on cribs) a good car or 2(you don't need 15 cars) and you don't need diamonds, and gold. the average person would be a little smarter, buy the essentials and invest some of the money and save the rest.

BroncoMan4ever
03-14-2011, 12:11 AM
The major problem here is that many rookies do not only have to pay their own cost of living, they also have to buy stuff for their parents, pay their agents, publicists and entourage. If you have to feed 5 or 6 people on 500k a year your money will go fast.

i really hope that is a joke, because my mother by herself raised myself and two sisters on 35-40 thousand a year. that included, food, clothes, shelter, car, and she was still able to save money for a college fund for each of us.

if you can't take care of a family of 5 on 500K a year, then you are a retard.

cutthemdown
03-14-2011, 12:30 AM
lol hardly any of us will ever make 500 grand a year. If any of you do I tip my hat and say enjoy though. Really unless you are a silver spoon, or worked really hard, you won't be making 500 grand. I know a couple doctors, ones is a plastic surgeon, he makes about 350 grand a yr.

The day you can't raise a family of 10 on that isn't here yet. Maybe not and buy a 1 million dollar house, big boat, travel all the time, but hey kids are always a burden.

epicSocialism4tw
03-14-2011, 01:30 AM
then they are idiots and deserve to be broke. how can and why should anyone feel sorry for such stupidity?

realistically if you got hired at a job where they told you when you were hired that more than likely within 5 years your career (that will pay you extremely well) is going to be over, and there won't be another big payday coming in after you are done. Would you go out and buy a 15 room mansion, 10 cars, bling, drop hundreds on strippers and hookers and all the other extravagent unnecessary stuff these idiots buy?

no the average person would realize they need to be smart. pay off your debts, get a nice house that can house your family(you don't need a house that has to be shown on cribs) a good car or 2(you don't need 15 cars) and you don't need diamonds, and gold. the average person would be a little smarter, buy the essentials and invest some of the money and save the rest.

Heck, most of these guys could do well just by buying fast food franchises and riding them out over the years.

But that doesnt sound as cool as buying a couple of Bentleys and a 100K gold chain with your name on it

And it definitely isnt keepin it real.

BroncoMan4ever
03-14-2011, 01:43 AM
Heck, most of these guys could do well just by buying fast food franchises and riding them out over the years.

But that doesnt sound as cool as buying a couple of Bentleys and a 100K gold chain with your name on it

And it definitely isnt keepin it real.

true, but if you are going to keep it real you better have worked out a contract like this guy

http://s1.hubimg.com/u/1912660_f520.jpg

http://www.totalprosports.com/blog/wp-content/uploads/2009/03/jamarcusbling.bmp

epicSocialism4tw
03-14-2011, 02:10 AM
true, but if you are going to keep it real you better have worked out a contract like this guy

http://s1.hubimg.com/u/1912660_f520.jpg

http://www.totalprosports.com/blog/wp-content/uploads/2009/03/jamarcusbling.bmp


Those morons like Russell are just perpetuating this moron culture. That moron culture values material things more than it values education and stability. If Russell valued stability, he would have put in the work to stay in the league for as long as he could.

Its shocking how stupid some people are. They get life handed to them on a silver platter, and they gobble it up and vomit it out on the way back to the crappy lifestyle they complain about being stuck in. Then they pop out a few kids by different moms and disappear, only to show back up when it looks like the kid can play football or basketball.

Shananahan
03-14-2011, 02:28 AM
A guy I worked with several years ago knew Larry Johnson's family and had plenty of stories about the idiotic excess purchased by Johnson after he signed his first big deal. He said LJ did plenty for his family and paid off people, etc, but that he also wasted so much money it had become a joke among his old friends. He told me a story about LJ being ripped off by a beautiful young woman while at the club one night. He had a diamond-studded gold necklace in the letters 'LJ' on and the girl asked if she could see it. While she was looking at it, Larry looked the other way and a second later she was gone. Apparently he never recovered it, and had spent $100k+ on it in total. He was teased about that quite a bit, I guess.

I can't imagine having so much money that you would be teased about losing something worth $100k+. At a certain point I'm sure it just becomes surreal and you assume it will never go away. That doesn't make disaster stories like Russell any less worse, but I can empathize to an extent.

GoBroncos DownUnder
03-14-2011, 03:28 PM
Heard an Interview with Isaac Redman (RB) last year about finally making the cut with Pittsburgh, after 2 years on the practice squad.

He said when Mike Tomlin called to give him the news he'd made the team, FIRST thing they asked was "Do you have an financial advisor? If not, the team can recommend a couple for you..."



There IS only so much a football team can do for a professional athlete, the rest is entirely up to the athlete!

Mogulseeker
03-14-2011, 03:34 PM
Give me two years on the NFL minimum salary, I'll buy a house (maybe two and lease the second, and put the rest into liquid holdings and set up a roth IRA.

Give me two years on the NFL minimum salary, and I'd be set for life.

BroncoMan4ever
03-14-2011, 04:27 PM
Give me two years on the NFL minimum salary, I'll buy a house (maybe two and lease the second, and put the rest into liquid holdings and set up a roth IRA.

Give me two years on the NFL minimum salary, and I'd be set for life.

i'm the same way. nice house, good dependable car and a good SUV(don't need an escalade, i'm not a rapper or a drug dealer) pay off my bills, and invest the rest.

Meck77
03-14-2011, 04:43 PM
It's easy to judge but is it really any different than the tens of millions who suffered a similar fate? Living beyond ones means is relative. Even shanny got bailed out by a friend. I know. Seems crazy they couldn't pay for their homes. At the same time you had people people buying 500k homes with no verifiable income.

Garcia Bronco
03-14-2011, 04:58 PM
lol hardly any of us will ever make 500 grand a year. If any of you do I tip my hat and say enjoy though. Really unless you are a silver spoon, or worked really hard, you won't be making 500 grand. I know a couple doctors, ones is a plastic surgeon, he makes about 350 grand a yr.

The day you can't raise a family of 10 on that isn't here yet. Maybe not and buy a 1 million dollar house, big boat, travel all the time, but hey kids are always a burden.

I know these two surgeons that make over a mill together. Sick money.

Cito Pelon
03-14-2011, 05:17 PM
Heard an Interview with Isaac Redman (RB) last year about finally making the cut with Pittsburgh, after 2 years on the practice squad.

He said when Mike Tomlin called to give him the news he'd made the team, FIRST thing they asked was "Do you have an financial advisor? If not, the team can recommend a couple for you..."



There IS only so much a football team can do for a professional athlete, the rest is entirely up to the athlete!

True.

Even if they sat down with an advisor, chances are they wouldn't understand the nuances of money management. It's just way beyond many, many people's ability. The financial foolishness the average person exhibits never ceases to amaze.

Tombstone RJ
03-14-2011, 05:21 PM
Same thing can be said for people who win the Lottery. Most don't have a clue as to how to manage the money, they burn it up, and then go into dept and file bankruptcy. Some of these players hit the lotto too, just in a different way. They don't manage their money and end up worse off than before the big pay day.

People I'd hire if I was a potential first round pick: 1. An agent (to get the money) 2. A personal lawyer (to protect my interests) and 3. An accountant (to manage my expenses).

4th would be a financial advisor to invest my money WISELY.

That's it, that's the people I pay to protect me, my family and my money and make sure I'd never have to work a real job for the rest of my life (if I didn't want to).

DontBeMessin
03-14-2011, 05:23 PM
You can't fix stupid....

OABB
03-14-2011, 05:25 PM
You can't fix stupid....

Tell me about it.... If we could you wouldn't be a raiders fan.

Cito Pelon
03-14-2011, 05:42 PM
Give me two years on the NFL minimum salary, I'll buy a house (maybe two and lease the second, and put the rest into liquid holdings and set up a roth IRA.

Give me two years on the NFL minimum salary, and I'd be set for life.

Yeah, it's pretty pathetic a whopping 78% are bankrupt two years after retirement. But, you wouldn't be set for life on say $385,000 (after taxes) at the age of 24-25. I'm guessing you meant it would be a good start . . .

Cito Pelon
03-14-2011, 05:52 PM
It's easy to judge but is it really any different than the tens of millions who suffered a similar fate? Living beyond ones means is relative. Even shanny got bailed out by a friend. I know. Seems crazy they couldn't pay for their homes. At the same time you had people people buying 500k homes with no verifiable income.

Yup, people all the time see a good influx of money for a couple years and bam! they buy on credit the Land Rover, a boat, a motorcycle, a too-expensive house, a snowmobile, an ATV, bigscreen TV, new furniture for the new house. All of which depreciates drastically, except for the house and that's not guaranteed to appreciate.

txtebow
03-14-2011, 07:50 PM
When you give 1st world $$$ to 3rd world cultural recipients, bankruptcy is the natural and expected result. This is tantamount to being shocked by discovering that eating lots of candy without brushing one's teeth leads to dental caries........

broncocalijohn
03-14-2011, 11:20 PM
They go to college for free, get an education and a job after football, no need to go BK.

I do not feel bad for any person that makes 1.5 mil in a few years and throws it all away.

Perfect post to be first. If these guys get that type of money and then can't find a good salary after football with a supposed degree, who's fault is that? They need to get a good agent that has an idea of finances and build for the future. If they were a low draft pick, that should give them a clue that they will need to work extra hard to make their career stick.

Mogulseeker
03-14-2011, 11:35 PM
Yeah, it's pretty pathetic a whopping 78% are bankrupt two years after retirement. But, you wouldn't be set for life on say $385,000 (after taxes) at the age of 24-25. I'm guessing you meant it would be a good start . . .

It would be a start. But... no, I think I could make myself set for life with about $800,000.

400k for a house... another 100k in liquid assets... 100k for spending on fun stuff and food... 200k is a decent roth IRA and I could turn that 800k into a whole lot more pretty quickly.

cutthemdown
03-14-2011, 11:45 PM
I know these two surgeons that make over a mill together. Sick money.

Yeah they guy I know will eventually get there but he's only in his 40's which is young in that business. I guess you make big money in your late 40's-early 50's.

epicSocialism4tw
03-14-2011, 11:47 PM
It would be a start. But... no, I think I could make myself set for life with about $800,000.

400k for a house... another 100k in liquid assets... 100k for spending on fun stuff and food... 200k is a decent roth IRA and I could turn that 800k into a whole lot more pretty quickly.

You can make 100-200k a year owning the right fast food franchises. Buy yourself one. Get your roth IRA. Work your franchise. Buy another. Then another. And another.

Before you know it you're chilin with Willie Nelson, Don Nelson, and Matthew MCanaughey (or whatever his name is) on your property in Maui for 6 months out of the year. And your playing golf four days out of the week stateside and meeting with your managers. You have engines working your money for you. You have an opportunity to provide jobs and benefits to people who need them. Winning.

footstepsfrom#27
03-15-2011, 01:10 AM
Yeah, it's pretty pathetic a whopping 78% are bankrupt two years after retirement. But, you wouldn't be set for life on say $385,000 (after taxes) at the age of 24-25. I'm guessing you meant it would be a good start . . .
Invested at an average anual ROR of 12% (mutual fund markets avg return pre-economic meltdown) you would have been. At that rate it would double every 6 years:

Age

30- $770,000
36- $1,540,000
42- $3,080,000
49- $6,160,000
55- $12,320,000
62- $23,640,000

I call that set for life.

footstepsfrom#27
03-15-2011, 01:16 AM
When you give 1st world $$$ to 3rd world cultural recipients, bankruptcy is the natural and expected result. This is tantamount to being shocked by discovering that eating lots of candy without brushing one's teeth leads to dental caries........
I see you're as big of an asshat as ever.

BroncoInferno
03-15-2011, 07:02 AM
You can make 100-200k a year owning the right fast food franchises. Buy yourself one. Get your roth IRA. Work your franchise. Buy another. Then another. And another.

I saw an article awhile back (maybe on here?) that talked about how Jamal Mashburn had invested in something like 75 Papa John's franchises and was doing very well in his post-NBA life. This in contrast to a guy like Antoine Walker who is now flat broke.

epicSocialism4tw
03-15-2011, 10:36 AM
I saw an article awhile back (maybe on here?) that talked about how Jamal Mashburn had invested in something like 75 Papa John's franchises and was doing very well in his post-NBA life. This in contrast to a guy like Antoine Walker who is now flat broke.

People dont realize how much money you can make owning fast food franchises. Its not even a steep price to enter the biz if you're a pro athlete. You dont even have to invest half a million and you've made more than your money back and then some in 5 years. After that, you're banking.

If you get 75 of those things going, you're living very well over the course of your entire life.

txtebow
03-15-2011, 11:52 AM
I see you're as big of an asshat as ever.

Facts and logic still evade you I see.

Mogulseeker
03-15-2011, 01:02 PM
You can make 100-200k a year owning the right fast food franchises. Buy yourself one. Get your roth IRA. Work your franchise. Buy another. Then another. And another.

Before you know it you're chilin with Willie Nelson, Don Nelson, and Matthew MCanaughey (or whatever his name is) on your property in Maui for 6 months out of the year. And your playing golf four days out of the week stateside and meeting with your managers. You have engines working your money for you. You have an opportunity to provide jobs and benefits to people who need them. Winning.

Nah. I'm getting my MA in International Economics right now. I just turned down an application as an analyst with the congressional budget office because I didn't want to move to Washington DC. The Rand Corporation and the SVA isn't paying me right now, but it lets me live in Denver.

BUT, aside from fast food, which I despise... I'd like to open up a brewery/buffalo steak house in Denver. Once I do get enough liquid holdings, I'd like to buy a high-country ranch in Wyoming and raise Buffalo. I've seen some spots that go for like $1,000 an acre.

I make this steak marinade that is just ridiculous. Let's just say it involves Jack Daniels, orange juice and Coca-Cola.

broncosteven
03-15-2011, 01:21 PM
Yup, people all the time see a good influx of money for a couple years and bam! they buy on credit the Land Rover, a boat, a motorcycle, a too-expensive house, a snowmobile, an ATV, bigscreen TV, new furniture for the new house. All of which depreciates drastically, except for the house and that's not guaranteed to appreciate.

I have seen it 1st hand and it is sad. No matter how much money some people have it is never enough.

I am just glad I was able to see it so I know what not to do.

In some ways we almost needed the recession to bring those who were living beyond their means back to reality. Up until people started losing their homes they could find ways to live up to their ears in debt, take a home and an income away and maybe people will learn how to save and live within their means.

I saw a documentary recently about Chinese migrant workers and one dude said that in China a worker will make $1800 a month, spend $200 of it and save the rest and in the US the same person making $1800 is spending it all and then some.

txtebow
03-15-2011, 01:35 PM
I have seen it 1st hand and it is sad. No matter how much money some people have it is never enough.

I am just glad I was able to see it so I know what not to do.

In some ways we almost needed the recession to bring those who were living beyond their means back to reality. Up until people started losing their homes they could find ways to live up to their ears in debt, take a home and an income away and maybe people will learn how to save and live within their means.

I saw a documentary recently about Chinese migrant workers and one dude said that in China a worker will make $1800 a month, spend $200 of it and save the rest and in the US the same person making $1800 is spending it all and then some.


Our economy is based upn the US consuming goods and services...so much so that the banks have been giving credit to everyone with a pulse(and sometimes without a pulse) If that decreases, the economy will go into the tank even more.......

gyldenlove
03-15-2011, 01:47 PM
It's easy to judge but is it really any different than the tens of millions who suffered a similar fate? Living beyond ones means is relative. Even shanny got bailed out by a friend. I know. Seems crazy they couldn't pay for their homes. At the same time you had people people buying 500k homes with no verifiable income.

It is no different in concept, just in magnitude.

The rate at which is happens to football players is just what astounds me, 78%, I can't think of another demographic group that has a rate of bankruptcy that high.

Obviously there are a lot of enablers in this, and if you look at some of the rookie initiations where kids are asked to drop 20-60k on a dinner is one of the things that set a bad example. You have kids who grew up in poverty suddenly dropping a years salary in one night and nobody is thinking anything about it, that is a bad mindset to get into.

The problem is that with the way the football season works, you have these kids out there spending 6 months essentially unsupervised, they have a lot of money, a lot of credit and they are famous, they are going to do stupid **** and the magnitude of stupid **** they can do is huge because of the game, the money and friends. If you average 24 year old did that they wouldn't be able to get into a whole lot of trouble because they wouldn't have a posse of enablers, wouldn't have platinum credit cards, expensive cars or fame.

d bronx42
03-15-2011, 02:45 PM
Stop spending money like an absolute moron, and $1.5 million should be more than enough to live on. I have no sympathy whatsoever for a guy making that much, when people around the United States are in foreclosure of their homes and have a family to support.

Buy a used BMW instead of the new 2011 BMW M5... Idiots.

baja
03-15-2011, 02:53 PM
It is no different in concept, just in magnitude.

The rate at which is happens to football players is just what astounds me, 78%, I can't think of another demographic group that has a rate of bankruptcy that high.

Obviously there are a lot of enablers in this, and if you look at some of the rookie initiations where kids are asked to drop 20-60k on a dinner is one of the things that set a bad example. You have kids who grew up in poverty suddenly dropping a years salary in one night and nobody is thinking anything about it, that is a bad mindset to get into.

The problem is that with the way the football season works, you have these kids out there spending 6 months essentially unsupervised, they have a lot of money, a lot of credit and they are famous, they are going to do stupid **** and the magnitude of stupid **** they can do is huge because of the game, the money and friends. If you average 24 year old did that they wouldn't be able to get into a whole lot of trouble because they wouldn't have a posse of enablers, wouldn't have platinum credit cards, expensive cars or fame.

A couple of points that make this even more astonishing;

They have complete medical insurance

Most are single and only need to support themselves

They are fed gourmet buffet style meals half of the year for free

They have investment planning services available to them

They are given large amounts of money in one lump sum opening the door to lucrative investments not available to most.

broncogary
03-15-2011, 04:37 PM
A couple of points that make this even more astonishing;

They have complete medical insurance

Most are single and only need to support themselves

They are fed gourmet buffet style meals half of the year for free

They have investment planning services available to them

They are given large amounts of money in one lump sum opening the door to lucrative investments not available to most.


Yeah, but they don't have that when they get out of football.

baja
03-15-2011, 05:51 PM
Yeah, but they don't have that when they get out of football.

I was pointing out what a golden opportunity they had to invest.

broncogary
03-15-2011, 05:54 PM
I was pointing out what a golden opportunity they had to invest.

I thought they didn't have anything to invest because of the high taxes they had to pay since they weren't corporations.

Just messing with you, baja. You know I love you. :wave::wave:

Rock Chalk
03-15-2011, 08:46 PM
The 78 percent number (i.e., 78% of NFL players go bankrupt within two years of retirement) is buoyed by the fact that the average NFL career lasts just three years. So, figure a player gets drafted in 2009, signs for the minimum and lasts three years in the league: He will have earned about $1.2 million in salary. Factor in taxes, cost of living and the misguided belief that there will be more years and bigger paydays down the road, and it becomes a lot easier to see how so many
players struggle with money after their careers end.

http://sports.yahoo.com/nfl/blog/shutdown_corner/post/Why-do-so-many-NFL-players-go-bankrupt-?urn=nfl-190555

Am I supposed to cry for them? Free college education for most of them. Their fault they didn't take advantage of the opportunities afforded to them by their talent while people far smarter than they will ever be will be lucky to make a million dollars in their entire life.

baja
03-15-2011, 09:31 PM
Am I supposed to cry for them? Free college education for most of them. Their fault they didn't take advantage of the opportunities afforded to them by their talent<b> while people far smarter than they will ever be will be lucky to make a million dollars in their entire life.

If you make $50,000 a year and work 20 years you have your million, most people will do that.

GoBroncos DownUnder
03-15-2011, 09:48 PM
On the flip-side of all this doom and gloom we have Carson Palmer ... regardless of what I think of him, as a person or player, the guy claims to have about $80mil in the bank! Nothing but respect for his ability to build assets and "set himself up" for the rest of his life! ;)

epicSocialism4tw
03-15-2011, 10:21 PM
Nah. I'm getting my MA in International Economics right now. I just turned down an application as an analyst with the congressional budget office because I didn't want to move to Washington DC. The Rand Corporation and the SVA isn't paying me right now, but it lets me live in Denver.

BUT, aside from fast food, which I despise... I'd like to open up a brewery/buffalo steak house in Denver. Once I do get enough liquid holdings, I'd like to buy a high-country ranch in Wyoming and raise Buffalo. I've seen some spots that go for like $1,000 an acre.

I make this steak marinade that is just ridiculous. Let's just say it involves Jack Daniels, orange juice and Coca-Cola.

You could have just done the smart thing and gone to school for 5 years to become a nurse anaesthetist.

txtebow
03-16-2011, 06:51 PM
You could have just done the smart thing and gone to school for 5 years to become a nurse anaesthetist.

They make VERY good $$$ and are very selective as to who they let into their degree program......but a very good suggestion indeed. Pharmacy is also lucrative.

epicSocialism4tw
03-16-2011, 09:49 PM
They make VERY good $$$ and are very selective as to who they let into their degree program......but a very good suggestion indeed. Pharmacy is also lucrative.

Very selective, yes, but not nearly as difficult a proposition as some of the other lucrative health care fields like many MD specializations and even pharmacy or physical therapy.