Have you ever wondered how so many athletes go broke after retirement so often? After all, Latrell Sprewell and Antoine Walker were both worth over $100 million, and yet within five years of retirement, each was essentially bankrupt. How, you might wonder?
(Hey, finally some expert advice Lenny Dykstra would be qualified to give!)
Fortunately, the BUSINESS INSIDER published a handy 11-point list on how to accomplish exactly that. The list is full of the usual suspects: bad investments, families magically growing exponentially upon the first signed contract, drugs. You know, exactly how you’d expect people lose money. But rather than look at the situation as what not to do - after all, how do you “not” have greedy relatives if you’re a millionaire? - why not approach the situation as a series of suggestions on what to actually do? A few tips below.
I’m sure when most of you read a story about a professional athlete filing for bankruptcy, you think the same thing I do: How in the hell could a millionaire athlete blow through all of their cash? SPORTS ILLUSTRATED looked into the matter and found two big problems: reckless spending and bad investments. Very, very bad investments.
How bad? How about an inflatable raft meant to go under your sofa so that if a flood came, you could float to safety on your sofa? Or a mouth guard that claims to increase your performance by setting your jaw in an “optimal position“? It seems that for every Magic Johnson, who parlayed the money made from his playing days into a business empire, there are scores of athletes making P.T. Barnum sound like a prophet.