Why Do Rich Athletes Go Broke So Quickly?

By Dave Ramsey

Sports Illustrated recently published a revealing article about the financial struggles of many former professional athletes.

Within two years of retirement, 78% of former NFL players have gone bankrupt or are in financial distress because of joblessness or divorce. Sixty percent of NBA players are broke within five years of retirement.

Think about that. Eight out of every ten NFL players are bankrupt or under financial stress within two years of leaving the league. These are guys that have made an absolute minimum of nearly $400,000 a year!

NFL stands for “not for long.” The average player lasts only 3.7 years in the league. So if a player lasts four years and makes the minimum salary—with the minimum increasing for each year of service—he can expect to make nearly two million dollars. Two million dollars!

So how does this happen? How can someone blow that much money in that short amount of time?

It’s pretty simple, really. Athletes blow money the same way the rest of America blows money! There’s no difference!

Sure, they have more to burn through. But what’s the difference between a guy who is spending $50,000 a year on a $40,000 income and the guy who is spending $500,000 a year on a $400,000 income? Neither one has any clue how to make a plan for his money!

Too many Americans work their whole lives and have nothing but a MasterCard, student loan, and car payment to show for it. That’s stupid!

Maybe you think, “Well they are just dumb football players.” But some of those football players are smarter than some of us ever thought about being. At least they had a goal and purpose for their lives. At least they reached the top of their profession. Sure, we can fuss at them for squandering it all away—but too many of us do the exact same thing.

So before you start judging athletes for burning through millions, take a look at your finances. How many stupid decisions are you making with money?

Don’t buy a car you can’t afford! Don’t get in over your head with some tricked-up mortgage! Stop piling up debt on your credit cards! Get a clue!

It’s ridiculous to work your butt off your entire life and retire broke. Professional athletes have no excuse for it, and neither do you.

Make a plan, stick to it, and get your life on track financially! Make it happen!

Dave Ramsey is a personal money management expert, an extremely popular national radio personality and best-selling author of The Total Money Makeover. Dave is changing the face of America by helping people get out of debt and build wealth. Ramsey exemplifies his life’s work of teaching others how to be financially responsible, so they can acquire enough wealth to take care of loved ones, live prosperously into old age, and give generously to others. Learn more about navigating through the current economy.