Throughout the years, a lot of professional athletes have amassed massive fortunes only to end up nearly broke at the end of their careers. But how?
Well, successful financial planner Don Padilla has written a book breaking down the reasons why athletes, who made millions during their playing careers, end up broke shortly after they retire.
“Despite those amazing salaries, 78 percent of NFL players, 60 percent of NBA players and a large percentage of MLB players file bankruptcy within five years of retirement,” said Padilla, National Football League Players Association (NFLPA) Registered Player Financial Advisor and author. “Over the years, through interviews with athletes and market research, I have identified four major reasons for this epidemic that is running rampant in the world of professional sports. If these issues are not addressed, it doesn’t matter how much money athletes make during their careers — they will spend it all and then some, often leaving them worse off than they were before they started playing.”
According to Padilla, these four major reasons include: Living beyond their means, poor investment choices, family pressures, and bringing the wrong people into their trusted circle.
Despite appearing to be simple pitfalls to stay away from, it’s happened time and time again. You’ve heard the stories. Former NFL star Vince Young nearly blew through his $ 26 million fortune by hiring the wrong people and adopting reckless spending habits; NFL legend Warren Sapp filed for bankruptcy in 2012, four years after retiring; and who can forget reports of Allen Iverson’s financial struggles, despite earning more than $ 150 million?
These are some of the stories Padilla wants to prevents with Not Another Broke Athlete, which he calls “a spiritual awakening”, not just for athletes, but also for anyone who wants to break the chains of poverty or change their mindset on finances.
Padilla, himself, knows the struggle firsthand. He’s been kicked out of his home, broke, almost bankrupt, on the brink of divorce and — despite those setbacks — became and stayed a millionaire.
“Being a former athlete, I know how important it is to manage your money and think long-term stability,” says NFL legend Warren Moon. “This book does wonders in giving athletes financial direction. I believe every athlete – rookie, current, or former athlete – should be reading this book.”
Padilla’s Not Another Broke Athlete is scheduled to hit bookstores and Amazon in October. Until then, you can visit his website here.