Elliss said he received financial education from his team and the league, but admitted he ignored the advice and made bad choices, including overspending and poor investments, which caused his fortune to go up in smoke. Eventually, Elliss — who was known for his charitable endeavors as a player — had to turn to local churches for help paying his bills and feeding his family of 11 children.
A few short years later, he was out of the NFL and, he claimed, completely broke. But it appeared he was still in need of cash as recently as last year. In , he reportedly offered his Super Bowl ring from his one season with the New Orleans Saints and a signed Saints helmet for sale on Craigslist.
Today, Simpson is serving time for kidnapping and robbery in a Nevada prison, the results of an attempt to reclaim what he claimed was stolen memorabilia. While the more traditional careers may allow a person to work 30 to 50 years, a professional athlete will work only a fraction of that time. This leaves the retired athlete with the job of managing what they have to last for the rest of their life.
Although most people don't have a small earnings window, the lesson to learn here is that our income is never guaranteed. Living within your means while putting money away for the unknowns of tomorrow is a necessity not matter how much you earn. According to Sports Illustrated , most athletes lack the financial knowledge to manage the large sums of money they're earning.
Tyson and Iverson are among many athletes who lived a lifestyle based on their peak earnings, yet failed to think about the money they would need later in life.
Regardless of your net worth , you have to play an active role in the management of your financial affairs. Even the best money manager won't care about your money as much as you do, and for that reason, you have to be the final and most important decision-maker and those decisions have to be made based on your financial knowledge.
If you know very little about managing money, it's not too late to change that. In June , the U. There has been a long-standing controversy over the sizeable revenue generated by college sports. The players, who actually create the income, see none at all. The NCAA maintains not compensating athletes preserves amateurism in college sports.
Warren Buffett may be one of the richest men in the world, but you may not know it by looking at his modest home and relatively simple lifestyle. He chooses a modest lifestyle because he knows that the accumulation of "stuff" is contrary to good, long-term money management.
Many of the athletes who find themselves broke overspent on extravagance, only to find their possessions nearly worthless later in life. Regardless of your level of income, live a lifestyle that doesn't stretch your budget. Not only will it set you up for financial freedom, but it's far easier to sleep at night when you're not worried about the next paycheck. Take a cue from the many athletes who have found themselves broke later in life. Spending, rather than saving, is a losing proposition regardless of how much money you have.
If you don't consider yourself a good money manager, ask for help. Work with a Financial Adviser With all the money coming in, it's a little hard to restrict yourself to a limited budget. Treat Yourself, Then Save Trying to ignore the urge to splurge is almost as bad as giving in to it. This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. About the Author. Most Popular. Tax Breaks. February 25, Income investors are often all about dividends, but that may not be a smart strategy for retirees.
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November 10, Ending your marriage usually means ending your relationship with your spouse. November 9, Many assume that making it to the big leagues practically guarantees a player will live a comfortable life for the rest of their days, making tens of millions each year.
In reality, few athletes see that level of wealth, and many of the few that do experience it for a short time. The average NFL career lasts less than four seasons, per Statista. As athletes have described , young people enter professional sports without little guidance on managing their money. As a result, countless athletes spend recklessly, give away countless sums to close family members, and are led to make poor investments.
In fact, many stars and even Hall of Famers have gone from being part of NFL history as the highest-paid players to being broke in a matter of years. The No. Instead, he became one of the biggest NFL draft busts of all time and financial ruin soon followed.
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