Why athletes go broke

The "Real Deal" is broke.

Former heavyweight champion Evander Holyfield is on the real life Deal or No Deal. It was reported that his estate was $ 10,000,000 in suburban Atlanta to foreclosure, was the mother of his children sued for unpaid child support but he seems to have made good on that debt. A consulting company has gone to court claiming the boxer Utah not have to pay back more than half a million dollars for the landscaping. Only one highprofile used by athletes to scale back his lifestyle to the level where you I was. Why is it that athletes, who often seem to have everything completely incapable of anything related to financial control?

We all played our violins to death when we heard of Latrell Sprewell's financial troubles. On Halloween 2004, Sprewell, who was in the final season of a $ 62-million five-year contract with the New York Knicks, said he was offended the Minnesota's TimberwolveOffer for a contract extension reportedly worth between $ 27,000,000 and $ 30,000,000 was for three seasons. Sprewell said: "I have to feed my family." The quotation is a national moniker for the public perception of athletes as greedy and touched by individuals. Apparently Sprewell still can not feed his family. His yacht was recently restored to take himself and his multi-million-dollar villa will be foreclosed on shortly.

While there is certainly the stereotype of the financiallyNBA irresponsible athlete, no professional sport is immune.

Let's take a look at some high-profile athlete financial sob stories over the years:

1st No one in my age can forget Jack "The Ripper" Clark, star player for the Boston Red Sox, the Boston bankruptcy in 1992 in the middle of his second year of a three-year contract with $ 8,700,000, he listed 6.7 million $ in debt. Jack was a master of financial planning and prudent investment approach. His bankruptcyPetition listed assets such as 18 cars, including Ferrari, that A 1990 cost $ 717,000 and three 1992 Mercedes Benz cars cost between $ 103,000 and $ 143,000. He owed money on 17 of the car and was be held liable for about $ 400,000 in federal and state taxes. He had also lost over $ 1,000,000 in a drag-racing venture. Sounds like Jack would have been, at home in the NBA. You can read it Herem Tyson \ 's Bentley

2nd Johnny Unitas, Hall of Fame quarterback for the BaltimoreColts, 1991 declared bankruptcy citing numerous failed ventures in his petition failed These bits contain bowling alleys, land deals and restaurants. He lay for Chapter 11 bankruptcy in 1991.

3rd Mike Tyson The name speaks for itself. Mike's bankruptcy was very well known. Despite hundreds of millions of people earn during his boxing career, Mike kept it simple. His bankruptcy petition simply told: "I'm not paying my bills." According to federal records, hisLiabilities amounted to approximately $ 27,000,000. You can read that story here.

4th Dorothy Hamill, the women's figure skating gold medalist in the Winter Games in 1976, bankrupt after a series of financial setbacks archived. Hamill said she has experienced financial setbacks as a result of poor financial investment advice and management.

These are just some of many athletes tales of woe. It is not a phenomenon limited to professional sports - just ask MC Hammer. Prior to his statementBankruptcy, it was made public, that to be his day to day living expenses far exceeded income by $ 33,000,000. If I turn off even to celebrities am, I have to mention, however, Kim Basinger and Michael Jackson.

If the Toronto Star ran an article claiming a shocking 60 percent of NBA athletes "go broke" five years after his resignation, we do not all draw that very small violin we have reserved for such occasions? The NBA players union and the NBA have both disputed that assertion. TheArticle goes on to take advantage of all the people and deceive "speak" these athletes. Although I have no doubt it is to this truth, I can also understand how such a generalization would be the NBA make uncomfortable. It leaves you with the impression that 60 percent of NBA players are not only financially, but also incompetent idiots in general. This is simply not true. While economic sense is often lacking, I see many more errors than their failure of trust, credibilityand the lack of life experience than anything else. Smart, employed people who can afford it and people with specific expertise in order to help them. This allows them to focus on their expertise. At some mistakes and bad decision is to be used in the rental and we hang with. This is not unique in the NBA or professional sports. It happens to everyone. That is life. It happens all the time. It just does not make front page when we screw up there. If there is any question at all as bad as weGeneral mess, just look at the personal declaration of bankruptcy statistics.

To get a perspective from the inside, I contacted Jordan Woy, a highly respected sports agent and a principal in the sports marketing / management firm Schlegel Sports. Jordan has represented numerous high-profile athletes

Here is what Jordon had to say:

I think there are several reasons why so many athletes go "bust". One is whether it is a lottery winner, an athlete or a starEntertainer, if not with the knowledge of how to save money and they are fitted into trouble. If they do not deserve it, through disciplined business practices and they do not have the skills they usually go through them quickly. Most lottery winners or athletes a lot of money in a short time. They begin to spend on things that only lose in value (cars, jewelry, party, Entourage, etc) and start the money they have to evaporate. You can takethis off until they stop earning big money. This is when the trouble starts. It is hard to believe that MC Hammer, Mike Tyson, Evander Holyfield and now Ed McMahon are broke. These are people who bought the hundreds of millions over time and it disappeared. Lavish spending and entourage were probably the downfall for the first three safe.

Most athletes play for four to ten years if they are lucky. After they pay taxes (40-50%) and agent fees and buy their first homes, cars,Outfits, jewelry (plus, cars, clothes and jewelry for friends and family), they are left with very little. If they expect a "first strike it rich" all of their longtime friends and family help. Most athletes feel obligated to help, all from the first then Wise Up. You want to keep up with their teammates. If someone buys a Bentley, they have to buy one, if someone buys a $ 75,000 watch, they need to buy to keep the look. Then, of course, if the career ended, and theystill live in a multi-million-dollar house, driving three expensive cars (and insurance), travel in private planes and taking Limo's when they go on the town is the reality in. The money dries very quickly.

However, if athletes educate themselves, learn money management skills and intelligent, secure investments on the way, they are usually in very good shape. After representing athletes for over 20 years, we call this our "life plan". We take our clients on working holidaySeason to places like Las Vegas, Cancun and on a cruise to the Bahamas to learn in business networking. We have people from industries such as real estate, oil and gas, financial planning, credit repair, asset protection / estate planning, etc come to educate the players and their wives so they can learn business and also to determine if they are in the interest of any of these industries for life after sport. One of the financial planners who comes always says, the mostPeople are dying down from Mt Everest is not up. The goal is to get these athletes to their Mt. Everest and safely get down.

So, what do you mean? Are the financial mistakes that athletes differently than your fault or mine? They are certainly made mistakes with a higher downside risks. When we hear these stories, we are simply not understand that someone has so much money and spend it all? Can we learn to live like insights about our lives, from their highpublic financial blunders? Do we even care at all?

With all due respect to Latrell Sprewell, we have our own families .... Feed