Wednesday, March 25, 2009

Jocks don't like stocks

That's my more exciting title to this great Sports Illustrated article: "How (and why) athletes go broke"

In a less public way, other athletes from the nation's three biggest and most profitable leagues-the NBA, NFL and Major League Baseball-are suffering from a financial pandemic. Although salaries have risen steadily during the last three decades, reports from a host of sources (athletes, players' associations, agents and financial advisers) indicate that:

- By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.

- Within five years of retirement, an estimated 60% of former NBA players are broke.

- Numerous retired MLB players have been similarly ruined, and the current economic crisis is taking a toll on some active players as well.
The usual suspects are represented (divorce, usually because of infidelity, rapacious agents and hangers-on) but one interesting aspect was this: many athletes don't invest in traditional securities because they're too abstract. Instead, they buy cars or jewelry or nightclubs because they seem tangible. Soon they're pawning their championship rings.


Anonymous said...

Jocks don't like stocks

You know, I don't that's such a bad position these days.

Brian said...

And E a ridiculous number of them go broke from bad investments. See for example Scottie Pippen.

Anonymous said...

Too bad they never got the chance to have their Social Security money diverted to Wall Street. They'd all be rich again!

Assistant Village Idiot said...

Anon 4:37 - They'd still have something, though. Like about 99% of their Social Security, knucklehead. In reaching for a clever put-down, you just ended up with a stupid statement instead.

Let me guess...Liberal?

Privatization Gomer Pyle said...

"Liberal"? OH, SNAP!

Teach us more about what's "clever" and what isn't, Professor Wit.