Professional Athletes Going Broke

see this year's rookies going for broke on the field problem as many of these players run the risk of going broke for real once their playing days are over our story is reported now by leek our first pick in the 2015 NFL Draft the Tampa Bay Buccaneers select Jameis Winston Jameis Winston the NFL's number one overall draft pick this year is a well toned walking investment the former Florida State quarterback signed with the Tampa Bay Bucs for a cool 25 million dollars making him a pretty wealthy man at the age of just 21 his skills are undeniable and yet even the greats in this game know that skills think but many young athletes don't think the money ever will in reality when I had all that money money distort everything around me to that love Keith McCants once a fierce defensive player was a first-round draft pick out of Alabama back in 1990 his contract seven point four million dollars plus one of the largest signing bonuses ever offered to a rookie defender hey be a great dream come true so how old were you when all this was twenty years old you're 20 years old and he became a multimillionaire literally overnight overnight what did you do with that money I like so I tell you what I did with that money I lost everything where did it all go gave it away you gave it away mmm so who did you end up giving money to was it friends was it family was it everybody everybody yeah anybody who asked everybody who exile said that was from Mobile Alabama I'm green I'm gullible I didn't know no better he made a string of bad investments friends he never knew he had suddenly had a handout and he says he never really knew how to say no he's hardly an isolated case from Mike Tyson to Bernie Kosar to Antoine Walker there's a long list of pro athletes once worth tens of millions of dollars who filed for bankruptcy if you take the top 10% of all wage earners in professional sports out okay about 90 percent are in financial distress five years after they retire that's not an official number it's just what edy Bukowski has seen managing pro athletes money for years I had someone about three years ago he called me he said I want to come in and talk about my portfolio and I'd looked him up and I realized that this man had made about 70 million dollars in his baseball career he walked in i saw he had nothing in his hands and i said you told me you were you know you wanted to bring your portfolio for me to look at he says i have i have nothing the factors contributing to their financial fumbles are numerous some live fast flashy and foolishly their egos inflated better than one of Tom Brady's footballs but the headlines are also full of those who've been taken advantage of unscrupulous agents and managers who prey on those who don't know any better which is why Buttowski started holding financial boot camps like this one you just won't go broke if you listen to this in addition to basic money management advice he invites big-name veterans to warn rookies of the dangers as well brain smartest guy it's scary when young immature kids get a lot of money into their pocket you've met some linebacker Winfred Tubbs who played with a New Orleans Saints and the San Francisco 49ers if we all made the money at the age of 30 instead of the age of 21 and we wouldn't probably be having this conversation Latroy Hawkins has been a major league baseball pitcher for years he's now with the Toronto Blue Jays to give a kid to understand that you know the money you're making now if you make enough of it that should last you the rest of your life kids don't think like that taking it all in was Christian Covington a former defensive tackle at Rice University who was just drafted this year by the Houston Texans I want to be wise I want to be wise when it comes to football I want to be wise when it comes to my financial decisions and I want to be wise when it comes to my all field actions as well according to league statistics the average career in the NFL is only a little more than three years Major League Baseball about five the NBA right in the middle but planning for that kind of early early retirement isn't on most rookies Minds you want to spend your money the way you want to spend your money former high school phenom Kenny Anderson was the youngest player in the league when he signed with the New Jersey Nets back in 1991 over the next 14 seasons he earned around 60 million dollars but now nearly all of that is gone when he made it his family felt they made it too and for Kenny a sense of obligation kicked in my my accountant used to laugh at me sometimes like you're not even spending your money all the people spending your money the first thing he bought is a rookie a house for his mom then he started writing checks to his siblings no I'm giving my sisters and my brothers allowance grown people allow it you don't love me how much was the 11 about you know three to five thousand a month his talent and his salary made him quite the catch and that cost him too you know I got eight kids you know two two divorces there's my third wife so a lot of this stuff was this look I did to myself all about money I mean some people call it you know the lottery effect that they're what they've won the lottery Len Middleton teaches at the Ross School of Business at the University of Michigan it's not rocket science it's not hard to learn it's being exposed to it and then the midterm exam is gonna be on the 25th do it so he started this business course tailored for future pro athletes although any student can enroll they have a choice right now they're at these crossroads right and if they gain this knowledge they're gonna be far better off down the road on a 1.3 million salary you factor in all these taxes this is almost 700,000 comes out of the top right let's subtract the hefty savings needed for a retirement that could start in their late 20s and the pot gets a lot smaller this is what you have left I was in shock like I almost walked out the class crying I was like what is going on yeah way to go Glenn Robinson took Glen's course and headed into the NBA with eyes wide open there's some guys in the league that don't even know to the pinter home you know bank account they just expect for people that's handling that money to be able to you know keep track of that and they trust them why do you think more colleges are doing classes like this that's a great question I have no idea hockey store Zach nigga wart isn't taking any chance after being drafted by the Edmonton Oilers he too enrolled in the course now after working on his fancy footwork at the gym he goes home to study good financial footing - how big a difference do you think this is made compassed in five years and let's see Kenny Anderson had the drive to fight back from his financial defeat he now gives money pointers to young athletes as often as showing off his three-pointers family is fine my bills are paid my house is paid off I'll have mortgage so yeah I'm fine my name is Keith McCants I came through this program as Keith McCants though had a tougher road he's got addicted to painkillers he was even homeless for a while his glory days in football a distant memory but he found a way to get rich in other ways so it's thinking thinking you ever think of thinking that he now counseled those struggling with addictions just like his for McCants that kind of wealth is the kind that really lasts the love of money is the root of all evil and a whirl of money it makes the world go round that's what you do with a debt too fast who you are

Channel: Ed Butowsky

Views: 256,420

Rating: 4.6673427 out of 5

Keywords: Professional Sports (Industry), Football (Interest), NFL, Football, NHL, NBA, MLB, Baseball, going broke, money management, financial advisors, Ed Butowsky, financial bootcamp

Id: CLkVTHcnjpc

Length: 8min 40sec (520 seconds)

Published: Mon Sep 14 2015