The stats are alarming, and we’re not talking about performance on the field. The high number of professional athletes who go broke soon after retirement, despite multi-million dollar contracts, highlights a pervasive and widely-recognized problem. While it may be too late for older players, the league is addressing the issue for current and younger players by emphasizing the importance of financial planning.
For instance, each player with the Denver Broncos can invest the standard $18,000 a year into the club’s 401(K) and the organization will match another $26,000. The match starts after a player’s rookie season, according to local Denver NBC affiliate KUSA.
“There is also a nice severance, annuity and pension each player gets after they’re done,” according to the station. “For all the problems the NFL has had taking care of its older players, the current players should realize that nowhere in the real world does such a benefit program exist.”
Still, KUSA notes the sad stories of players squandering millions and millions and are broke 10 years after they’re done. Are today’s players smarter about their financial planning?
“Smarter? They’re more aware, maybe, but smarter?” Broncos’ cornerback Chris Harris Jr. told the station with a laugh. “More money, more spending.”
“You’re talking 10 years after the average career, you’re still talking what, 33, 34, 35 years old?” added player David Bruton Jr., who serves as co-player rep with standout star Von Miller. “You still have the rest of your life to live so I can understand it (how players run through their money). It’s a very short career.”
Bruton told the station he’s been socking money away. The most he’s made was $2 million in 2013. He’s making $1.25 million this year.
“Compared to the average career, I’m in a long career right now,” said Bruton, who as a seven-year player is three to five years past the average. “I’ll definitely do MBA classes when I’m done. I’ll do something immediately.”
See Also:
- Rookie NFL Players Do Retirement Planning Right
- Firm Specializing in Athletes, Entertainers and HNW Clients Acquired by Creative Planning
With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.
