The Real Reason Why Athletes Go Broke
What ARE the real reasons athletes go broke? Is it the dumb things they buy? Well, that’s part of it. Is it the bad investment decisions? That’s another part. But there’s really ONE number reason why athletes go broke. Watch this video to find out!
Subscribe to Pablito’s Way!
New videos Monday through Friday!
New to Pablito's Way? Start here!
Watch some of my favorite vids below…..
WEIRDEST Things Ever Found in Animals!
11 Most Ridiculous Purchases by Floyd "Money" Mayweather!
Here are the real reasons why athletes go broke! The biggest and most important reason just might surprise you!
10 - The Joneses
Nothing gets you broke faster than making financial decisions based on what other people think. Most athletes struggle to understand this and a lot of them eventually end up learning the lesson the hard way. Athletes are in the spotlight and they want to be a trendsetter. And because so many guys do it, the pressure of owning several cars, homes, and designer clothing is high. But it doesn’t mean they have to! Athletes not thinking long term can easily blow through millions. Especially since most athletes accumulate a lot of cash early in their lives, and don’t have a career after their playing days. Athletes need to realize that unlike other people, their careers are short-lived. The cash flow they’re used to doesn’t continue as long as they think it does. The average basketball career is less than five years while the average football career is even shorter at three years or less. Another crazy fact is that 60% of NBA players are broke within five years of retirement and nearly 80% of NFL players have little savings left within two years of retirement. On the flip side, most athletes should take Adonal Foyle as an example. Although he wasn’t a star in the NBA, he still made over 63 million dollars during his 13-year career! Even when he became a multi-millionaire, he always maintained his strict financial discipline. For example, he only bought used cars and never took the big depreciation hit on new cars. Foyle never adopted the carefree spending lifestyle of his peers. Instead, he learned from their mistakes and controlled his spending, even cutting out $4 coffees for a while midway through his career and brewing coffee at home!
9 - Mismanagement
Imagine if the person who’s supposed to help you make more money actually has no clue what they’re doing? That’s the story of William “Tank” Black, one of the most notorious agents in sports history. He was kinda the Bernie Madoff of sports! Black was originally a South Carolina assistant football coach. He started Professional Management Incorporated and quickly used his football connections and charisma to become one of the most successful football agents of his time. Let’s take former running back Fred Taylor as a quick example. Taylor was the Jaguars' first-round pick in 1998, and one of Tank Black’s premier clients. He invested Taylor’s money, along with a lot of other players, in a ponzi scheme in the late 90s! Tank Black lost $3.6 million of Taylor's money alone! Investing in a ponzi scheme by accident is just one example of dumb things Tank Black did with money. But he was extremely charismatic, and that’s why players trusted his judgement. In fact, Taylor was so close to Tank Black that he started calling him "Pops”. He represented well over 50 NFL players at his peak. In 1999, he signed a record five first-round draft picks in the NFL, in addition to 3 second round draft picks.
Tank Black ended up in prison because of money laundering and stock fraud. He lost millions of dollars for his clients. At first, Taylor defended Black. But soon he found himself at a bank, applying for a $100,000 loan just so he could get through the 2001 offseason. He was barely scraping by because he chose the wrong person to invest his money! Taylor later admitted he nearly retired from football because of all the stress. For what it’s worth, Black did win a civil suit the SEC filed against him alleging that he cheated clients. Quick, before we continue, do us a big favor, and hit the like button, because it helps us out a ton!
8 - Kid Problems
Wait what?! Too many kids is on this list?! Well, first of all, kids are expensive in general. The average cost of raising a child from birth to the age of 18 is roughly around 234 thousand dollars! However, raising the kids themselves are something that most professional athletes can afford, even if they have something like 10 of them. But that’s only if you’re taking care of the kid yourself, so you have the ability to choose how much to spend. What I’m really talking about here is child support.