Bankruptcy

Financial Problems Haunt Former Pro Athletes, Too

By meaghano

USA Today has the nicely titled “Tough Losses” piece on former athletes that were also savvy business investors, but have nonetheless struggled in the recent economy.

You’re probably familiar with the tales of atheletes wasting their millions on lavish extravagances. Jason over at Automatic Finances has a great post that pulls some practical advice from athletes tales of money mispent on bad investment and shady “financial managers.” But what’s scary are these stats:

78% of retired NFL players are bankrupt within 2 years. For NBA players, 60% are broke within 5 years of retirement.

However, the athletes profiled by USA Today aren’t in this mold. Take Hall of Fame defensive lineman Willie Davis. He played for Vince Lombardi in the days before million-dollar contracts.

The now-73-year-old managed his money wisely - at one time, his banking investments were worth millions - has scene his fortune dwindle because of the housing bust. Former New Orleans Saints running back Deuce McAllister owned a Nissan dealership that was forced to file for bankruptcy.

These tales are reminder that even smart investments can turn sour for even smart businessmen. Financial pitfalls could befall anyone, even if you’ve saved for a rainy day or watch your budget closely.

Just remember: If you find yourself in rocky financial waters, know that you do have options, and there is help available.

Full post as published by The Bankruptcy Blog on July 01, 2009 (boomark / email).