Since athletes make more money than the average person, it is really difficult to understand how and why they go broke. When I think of athletes, one thing comes to mind, money. Growing up I always wanted to be a professional athlete, not because of the money, but for the excitement and the chance to be a hero, but as I got older, the fame didn’t get my attention, but the money did. Players filling for bankruptcy is nothing new for NBA players. It is estimated that 60% of all NBA players will file for bankruptcy five years after they retire. However, NBA players aren’t the only ones going broke.

The NFL has it bad too. Reports show that after two years of retirement, 78% of NFL players will file for bankruptcy or will be under financial stress because of divorces and lack of job opportunities. Some may think it is only the bench players who file for bankruptcy, but that’s far from the truth. Remember Johnny Unites, of course you do, but did you know that he went bankrupt after failed business ventures? NFL great and Giants legend Lawrence Taylor filed for bankruptcy in 1998 and the Saints all-time rushing leader filed for bankruptcy protection for his car dealership in Mississippi. How could this happen?

Players who are not careful with their money will have a hard time finding it when sports career is over. Some athletes, such as Kareem Abdul-Jabbar lost millions of dollars because of bad business deals. Sheryl Swoops of the WNBA earned an estimated $50 million, filed for bankruptcy in 2004 after she claimed her agents and lawyers mishandled her money. Four-time NBA All-Star Latrell Sprewell filed for bankruptcy after federal agents repossessed his yacht, which he still owed $1.3 million and in 2008, he defaulted on a $1.5 million dollar mortgage.

Some athletes are just plain dumb when it comes to their money. Former NBA star Shawn Kemp is a father of seven children, by six different women. Kemp’s money was sapped after a court ruling sentenced him to pay tens of thousands of dollars in child support. Former running back Travis Henry was caught up in the same deal. He fathered nine children by nine different women. Henry was jailed after failed attempts to pay his child support of $3,000 a month.

There are several ways professional players lose money too. Athletes who get into legal trouble try to buy themselves out of their problems. Reportedly, Roger Clemens had to sell his Bentley to pay his legal bills. Marion Jones did the same right before she went to prison. Some athletes go bankrupt after buying lavish homes, cars, jets and jewelry. Athletes also go broke because they surround themselves with people who have their hand out. That is a bad situation to deal with, especially if the people begging for money are your family members.

My advice to young athletes is to keep records of your money and don’t let others take control of your assets. Just because she’s your girlfriend, doesn’t mean you have to buy her parents and siblings cars and houses. And finally, talk with retired athletes who invested their money wisely. Soak up the knowledge and put your money somewhere that will be safe and free from those who only want the best for them and not you.

- John A. Roberts

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Tags | athletes who file for bankruptcy, Broke Athletes, poor athletes