Sunday, August 18, 2013
Although big-time athletes may seem financially secure, a high proportion of professional athletes are completely unprepared following their often-short playing careers.
The average NFL career is 2.7 years and careers in other major sports leagues last only slightly longer. Athletes may come into sudden wealth, but they are particularly challenged when it comes to managing their lifestyles sustainably, investing their wealth wisely, and staying away from unscrupulous advisers. An estimated 78% of pro football players are in financial distress two years after their career, and around 60% of pro basketball players are broke five years after their career.
David Emma, a registered investment adviser who focuses on families with pro athletes, stresses the importance of a second career. Emma says, “At 35, you’re too young to do nothing. If you meet the right people, you can do great things.”
See Andrew Osterland, Athletes Finish Out of the Money, Investment News, Aug. 11, 2013.