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Here is what Jordon had to say:
However, if athletes educate themselves, learn money management skills and make smart, safe investments along the way, they are normally in very sensible shape. After representing athletes for over 20 years, we call this our "life plan". We take out clients on working vacations in the off season to places like Las Vegas, Cancun and on a cruise to the Bahamas to learn business networking. We have people from industries such as real estate, oil and gas, monetary planning, credit fix, asset protection/estate planning, etc come to educate the gamers and their wives so they can learn nearly these business and also determine if they are interested in any of these industries for life after sports. One of the monetary planners who comes always says most people die coming down from Mt. Everest not going up. The goal is for these athletes to get to their Mt. Everest AND to get down accurately.
So, what do you believe? Are the monetary mistakes that athletes make any preference than your mistakes or mine? They are without doubt mistakes made with a higher downside. When we pay attention these stories are we just unable to comprehend that someone could have that much money and spend it all? Can we learn lessons on how to live our lives from their extraordinarily publicized monetary gaffes? Do we even care at all?
I think there are several reasons why so many athletes "go broke". First, whether it is a lottery winner, an athlete or a star entertainer, if they are not equipped with the knowledge on how to make and save money they are in trouble. When they didn't earn it through disciplined business practices and they do not have those skills they normally go through it quickly. Most lottery winners or athletes make a great deal of money in a short time period. They start spending it on matters that only go down in value (cars, rings, partying, entourage, etc) and start to evaporate the money they do have. They can carry this off until they stop earning big money. This is when the trouble starts off. It is demanding to believe that MC Hammer, Mike Tyson, Evander Holyfield and now Ed McMahon are broke. These are people who earned hundreds of thousands of millions over time and it disappeared. Lavish spending and entourages were probably the downfall for the first three for sure.
In order to get a perspective from the interior, I contacted Jordan Woy, a extraordinarily respected sports agent and a principal in the sports advertising/management firm of Schlegel Sports. Jordan has represented a great deal of high profile athletes
When the Toronto Star ran an article alleging that a shocking 60 percent of NBA athletes "go broke" five years after retiring, did we not all pull out that very tiny violin we have reserved for such occasions? The NBA gamers union and the NBA have both disputed that assertion. The article goes on to talk nearly all the people taking advantage of and "scamming" these athletes. While I have no doubt there is truth to this, I can also know the way such a generalization would make the NBA uncomfortable. It leaves you with the impression that 60 percent of NBA gamers are not only financially inept but also idiots in general. This is simply not true. While sensible business sense is often lacking, I view many of their mistakes as being more mistakes of trust, credibility and absence of life adventure than anything else. Smart, busy people who can afford it, hire people with targeted expertise to help them. This makes it that you can imagine for them to focus on their expertise. Sometime mistakes are made and terrible judgment is used in who we hire and hang out with. That is not unique to the NBA or professional sports. This happens to everyone. That is life. It happens regularly. It just does not make front page when we screw up. If there is any question at all as to how badly we because the general public screw up, just look at the personal bankruptcy filing statistics.
Most athletes play for four to ten years if they are lucky. After they pay taxes (can be 40 to 50%) and agent fees and purchase their first homes, cars, outfits, rings (plus, cars, clothes and rings for pals and family), they are left with very little. When they first "strike it rich" all of their longtime pals and family expect help. Most athletes feel obligated to help everyone out at first then they wise up. They also prefer to keep up with their teammates. If someone buys a Bentley, they have to purchase one; if someone buys a $75,000 watch, they have to purchase one to keep up the appearance. Then, of course, when the career ends and they're still living in a multi million dollar house, riding 3 dear cars (and insurance), traveling in private planes and taking Limo's when they exit on the town, reality sets in. The money dries up very quickly.
Let's take a glance at some high profile athlete monetary sob stories over the years:
3. Mike Tyson The name speaks for itself. Mike's bankruptcy was extraordinarily publicized. Despite earning hundreds of thousands of millions during his boxing career, Mike kept it uncomplicated. His bankruptcy petition simply observed: " I am unable to pay my bills". According to federal court records, his liabilities totaled nearly $27 million. You can study that story here.
With all due admire to Latrell Sprewell, we have our own families to feed.
1. No one my age can forget Jack"The Ripper" Clark , star player for the Boston Red Sox who filed for bankruptcy in 1992 in the middle of his second year of a three-year, $8.7 million contract with Boston; he listed $6.7 million in debts. Jack was a master of monetary planning and prudent asset acquisition. His bankruptcy petition listed assets such as 18 automobiles, including a 1990 Ferrari that price $717,000 and three 1992 Mercedes Benz cars costing between $103,000 and $143,000. He owed money on 17 of the automobiles and was liable for nearly $400,000 in Federal and state taxes. He had also lost nearly $1 million in a drag-racing venture. Sounds like Jack would have been more at home in the NBA. You can study nearly it hereMike Tyson's Bentley
These are just a few of many athletes' tales of woe. It is not a phenomenon constrained to professional sports -- just ask M.C Hammer. Prior to his declaring bankruptcy, it was made public that his day to day living charges far exceeded his income of $33 million. If I am going to veer off to celebrities, I without doubt have to mention Kim Basinger and Michael Jackson.
2. Johnny Unitas, Hall of Fame quarterback for the Baltimore Colts, filed for bankruptcy in 1991 citing a great deal of failed business ventures in his petition These failed bits included bowling alleys, land deals and restaurants. He filed for Chapter 11 bankruptcy in 1991.
4. Dorothy Hamill, the ladies's figure-skating gold medalist in the 1976 Winter Games, filed for bankruptcy after a series of monetary setbacks. Hamill said she has experienced monetary setbacks in consequence of poor monetary investment advice and management.
While there is without doubt the stereotype of the financially irresponsible NBA athlete, no professional sport is immune.
Former Heavyweight champion Evander Holyfield is playing the genuine life game of Deal Or No Deal. It has been reported that his $10 million estate in suburban Atlanta is under foreclosure, the mum of one of his babies is sued for unpaid infant support. It appears that he has coughed up her cash. It has been reported that a Utah consulting company has gone to court claiming the boxer failed to pay back more than a half million dollars for landscaping. Just one more high profile athlete having to scale back his strategy to life to the level to which you have I have been accustomed. Why is it that athletes who seem to have everything are often completely unable to manipulate anything associated to finances?
The "Real Deal" is broke.
