Fumbling Towards Bankruptcy: Why So Many NFL Football Players Score Massive Debt
Pro football players may be some of the highest-paid athletes in the country, but having lots of cash does not equal having money sense. Even though a talented player might score as much as a few million dollars per season, it’s becoming more and more common for football players to declare bankruptcy. Why are so many in debt? Whether their financial situation is due to bad investments or supporting an entourage, there is an explanation behind every Chapter 7.
Double Foul: The Statistics of Bankruptcy
Let’s begin by looking at the statistics surrounding bankruptcy. First, the average career of a pro player is approximately three years. On average, a player makes a million dollars a year. That breaks down to an average play salary of $35,000 per game. 65% of players leave the game due to career-ending injuries, and 320 veteran players lose their jobs every year. Even though they make an average of $3 million over the course of their careers, after a scant two years after retirement, 78% of all football players declare bankruptcy.
Touchdown! A Roster of Bankrupt Players
Wondering just who some of the most famous bankrupt players are in the NFL? Following are a list of the top 8 bankrupt players and the reasons behind their financial woes:
Johnny Unitas – won one championship, and earned $4 million. Declared bankruptcy in 1991 due to a bad business decision.
Deuce McAllister – didn’t win any championships, but earned $70 million. Declared bankruptcy in 2010 on account of bad business.
Dermontti Dawson – didn’t win any championships, but earned $55 million. Declared bankruptcy in 2010 due to failed real estate ventures.
Michael Vick – didn’t win any championships, but earned $130 million. Declared bankruptcy in 2008 due to legal trouble.
Lawrence Taylor – didn’t win any championships, but earned $50 million. Declared bankruptcy in 1998 due to drug abuse and tax evasion.
Mark Brunell – didn’t win any championships but earned $13 million. Declared bankruptcy in 2008 due to a series of bad loans.
Travis Henry – didn’t win any championships, but earned $20 million. Declared bankruptcy back in 2009 because of a multitude of legal issues.
Charlie Batch – didn’t win any championships, but earned $13 million. Declared bankruptcy in 2010 on account of bad real estate ventures.
NFL Players vs. Joe Six Pack
So where does all the money go? To put it in perspective, it helps to take a look at how the lifestyles of NFL players stack up with the spending habits of the average Joe.
For example, the median home value of a NFL player is $800,000, which is eight times the median home value in America. As we discussed above, NFL players average a million dollar salary every year, while most Americans make closer to $50,000. When it comes to vacations, the average NFL player spends about $10,000 while most of America spends more like $500. NFL vacations can last a lot longer – as much as six months unpaid. Most people in America get two weeks paid vacation.
So, in summary, NFL players may make more, but they also spend more. Perhaps in addition to spring training, NFL players should take a few courses in money management as well!
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