The Financial Rise & Fall of Professional Athletes
(News4us.com) April 29, 2012
The financial rise and fall of professional athletes has been brought to the media spotlight recently as the NFL holds its draft this week.
Over two hundred college students will have a chance in the coming days to become instant millionaires through NFL selections.
Just how long these super star athletes can hold on to their large fortunes is another question, with history showing that basketball and football stars are especially prone to financial disasters.
Many a person has questioned, “How can someone who is paid so much struggle so hard to stay financially independent”.
Poor financial choices through money mismanagement are rife among high earners who are just not used to managing such large sums of money and most times have to rely on others to manage it for them.
Becoming instantly financially independent also causes dramatic changes within a person’s psyche.
The recipients of large sums of instant money quickly fall into the old trap of complacency and believing that everything will now be alright forever.
They neither have the specialized education or knowledge to be able to handle these large sums of cash paid to them and can easily fall under the influences of more knowledgeable or even unscrupulous people in the vast areas of financial management.
Financial hardship often goes hand in hand with family and relationship breakdowns and the younger the athlete the more vulnerable they are to these issues.
While the initial sign-up contract amount may sound enormous, in reality it is not normally paid out in full.
When you consider that three and a half years is average for a pro football career according to the NFL Players Association, then that $30 million 5 year contract is not really as good as it looks.
The NFL does conduct workshops for its new players covering various health related topics and personal finance matters, but the amount of broke athletes continues to escalate.
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