How Many NFL Players Go Broke?

How many NFL players go broke? It’s a question that’s been asked a lot lately, and for good reason.

A recent study showed that 78% of NFL players are either broke or financially stressed just two years after retirement. And another study found that 60% of NBA players go broke within five years of retirement.

So what’s the cause of all this financial stress and bankruptcy? Well, there are a few factors at play.

First, many professional athletes

The high rate of NFL player bankruptcy

Despite their high salaries, many NFL players find themselves insolvent a few years after retiring. In fact, the rate of bankruptcy among NFL players is alarmingly high, with some estimates suggesting that as many as 78% of players will be bankrupt or under financial strain just two years after leaving the league.

There are a number of factors that contribute to this issue, including the high rate of divorce among NFL players (which can lead to costly legal bills), the pressure to maintain a lavish lifestyle after retirement, and the fact that most players only have a short window of time to earn their income (since the average NFL career lasts just 3.3 years).

Whatever the causes, it’s clear that bankruptcy is a major problem for NFL players. And it’s one that needs to be addressed in order to protect the long-term financial health of those who have given so much to the game.

The causes of NFL player bankruptcy

There are many factors that can contribute to NFL player bankruptcy. Some of the most common causes are poor financial planning, overspending, and bad investments. Poor financial planning is often the result of not having a budget or not sticking to a budget. Over spending can be the result of lifestyle inflation or simply buying things that are not necessary.

Lack of financial education

Although many NFL players receive large salaries, many of them are not prepared to handle their finances in a responsible way. A lack of financial education can lead players to make poor decisions with their money, such as purchasing unnecessary luxuries or investing in high-risk ventures. Without a solid understanding of personal finance, it is easy for players to fall into debt and eventually declare bankruptcy.

Poor money management

Poor money management is often cited as the main reason why NFL players go broke. In a 2011 poll of players by the National Football League Players Association (NFLPA), 60% of respondents said they had blown through all or most of their earnings within two years of retirement. And 78% of those who had gone bankrupt said poor money management was the primary reason.

There are a number of reasons why NFL players may have difficulty managing their money. For one, they tend to be young and inexperienced with handling large sums of money. Many players also come from low-income families and may not have received much financial education. Furthermore, NFL contracts are not guaranteed, so players may have to worry about being cut from their team at any time. This can make it difficult to save for the future.

Players also face pressure to spend money on luxuries such as cars, homes and clothes in order to keep up with their peers. And because they often earn a high income at a young age, they may not have developed the financial discipline necessary to save for the long term.

If you’re an NFL player or know someone who is, it’s important to be aware of the risks associated with poor money management. Be sure to seek out financial advice from someone you trust so you can make smart decisions with your money.

High taxes

The high taxes that professional athletes have to pay can contribute to financial problems later in their careers. Many athletes are in the top tax bracket and have to pay taxes of up to 50% on their income. This can leave them with very little disposable income after they retire from their sport. In addition, athletes often have to pay state taxes in multiple states if they have played for teams in different states during their career. This can add up to a significant amount of money each year.

The cost of living an NFL lifestyle

In the National Football League, the average career lasts just 3.3 years. And while some players go on to have long careers, many are out of the league within just a few years. For those players, the transition to life after football can be a tough one.

Without a steady income, many former NFL players are forced to live off of their savings—which can quickly dwindle if they’re not careful. In fact, 78% of NFL players are either broke or under financial stress within two years of retirement, according to a 2016 study by Edelman Financial Services.

So what causes so many NFL players to go broke? There are a number of factors, but one of the biggest is the cost of living an NFL lifestyle.

With a starting salary of $480,000 and an average salary of $2 million, NFL players certainly make more than most Americans. But their earnings don’t always last as long as they might hope. For one thing, their careers are shorter than those in most other professions. And even when they do have long careers, their earnings are often front-loaded—meaning they make most of their money early on and then have to live off those earnings for the rest of their lives.

But it’s not just the length and structure of their careers that can cause problems for NFL players; it’s also their spending habits. Many players come from humble beginnings and have never had much money, so when they suddenly find themselves with millions of dollars in their bank accounts, they tend to spend lavishly. On cars, clothes, jewelry, and other luxury items.

And then there are the friends and family members who invariably come out of the woodwork asking for loans or financial assistance—which can be difficult to say no to when you have more money than you know what to do with.

All of this spending can quickly put a dent in even the healthiest bank account—and leave NFL players scrambling to make ends meet once their playing days are over.

The effects of NFL player bankruptcy

Every year, we see a few high-profile NFL players go bankrupt. It’s a sad reality, but it’s one that happens far more often than most people realize. In fact, according to a 2009 Sports Illustrated article, an estimated 78% of former NFL players are either bankrupt or under severe financial stress within two years of retirement. There are a number of factors that contribute to this staggering statistic.

on the player

According to a recent study released by the National Bureau of Economic Research, approximately 16 percent of NFL players go bankrupt within 12 years of retiring from the league. That number is shockingly high, and it’s even more alarming when you consider that the average career in the NFL lasts just 3.3 years.

So why do so many NFL players go broke? It’s likely a combination of factors, including the fact that they simply don’t make enough money to sustain their lifestyles after their playing days are over.

In addition, many players lack the financial knowledge to make smart decisions with their money. They may also be taken advantage of by unscrupulous financial advisors. And finally, players may be pressured into making bad decisions by friends or family members who are hoping to cash in on their success.

Whatever the reasons, it’s clear that something needs to be done to help these former NFL players keep their heads above water financially. Otherwise, we’re likely to see even more stories of bankruptcy and financial ruin in the years to come.

on the family

Playing in the NFL is a dream come true for many young athletes. But what happens when that dream turns into a nightmare?

Many NFL players go bankrupt within just a few years of retiring from the league. In fact, it’s estimated that 78% of NFL players are either bankrupt or under severe financial stress just two years after they retire.

What causes this financial ruin? In many cases, it’s simply due to the fact that NFL players are paid relatively little compared to other professional athletes. For example, the average salary for an NBA player is around $5 million per year, while the average salary for an NFL player is just $2 million per year.

But it’s not just low salaries that cause financial problems for NFL players. Poor money management, lavish spending, and exorbitant child support payments can also lead to bankruptcy.

In some cases, bankruptcy can have a devastating effect on families. For example, former NFL player Terrell Owens was forced to auction off his Super Bowl ring in order to pay back child support payments. Other players have had to declare bankruptcy due to poor financial decisions made by family members.

So what can be done to prevent NFL players from going bankrupt? It’s important for players to understand the risks associated with playing professional football and to plan accordingly for their post-football lives. Many players rely on their signing bonuses to support themselves after they retire, but this is often not enough. Players need to make sure they have a solid financial plan in place before they hang up their cleats for good.

on the team

While it’s difficult to know exact numbers, it’s estimated that between 78-85% of NFL players are either under financial stress or flat-out bankrupt within two years of retirement. Though the average NFL career only lasts 3.3 years, players earn an average of $1.9 million per year while they’re playing. However, what many players fail to realize is that their earning potential takes a major hit once they retire. In fact, the average U.S. household earns $50,000 per year, which means that former NFL players are making less than 4% of what they used to earn just a few years after retirement.

So what causes such a dramatic drop in income? For one, most NFL contracts are not fully guaranteed, which means that if a player is cut from their team, they may not receive any more money from their contract. In addition, many players lose a significant amount of money through poor investments, expensive lifestyles, and costly divorce proceedings.

The effects of bankruptcy can be far-reaching and long-lasting. Not only does it ruin an individual’s credit score and make it difficult to get loans in the future, but it can also lead to depression and other mental health problems. For former NFL players who have already faced significant physical challenges during their careers, these additional financial and emotional burdens can be too much to bear.

How to prevent NFL player bankruptcy

According to a study done by ESPN, 78% of NFL players are either bankrupt or under severe financial stress within two years of retirement. This is a staggering number, and it’s hard to imagine how so many people with such high incomes could go broke. There are a few things that contribute to this problem.

Financial education

Financial education is critical for all football players, especially those in the NFL. So many players go broke after their career ends, and it’s often because they don’t know how to manage their money.

There are a few things that players can do to prevent bankruptcy, and it starts with understanding their finances. Players need to know how much money they’re making, what their expenses are, and how to budget for both short-term and long-term needs. They also need to be aware of the risks of investing in things like real estate and businesses.

Players also need to have a plan for what they’ll do after their playing days are over. Too many players think that they’ll just sign another contract or find another source of income, but that’s not always the case. Players need to have a solid plan for their financial future, so they don’t end up bankrupt after their career ends.

Better money management

With an average career lasting just 3.3 years, and a minimum salary of $435,000 in their first season, it’s no wonder that so many NFL players end up going broke. In fact, 78% of NFL players are either bankrupt or under severe financial stress within two years of retirement, according to a 2009 Sports Illustrated article.

So what can be done to prevent NFL player bankruptcy? Better money management is a good place to start. Financial planning experts recommend that athletes save at least 10-15% of their income for retirement, but many players fail to do this.

Another important step is to avoid lavish spending. Many young players make the mistake of buying expensive homes, cars, and jewelry that they can’t afford. Not only do these purchases put a strain on their finances, but they also make it harder to save for the future.

Finally, players need to be aware of the financial risks associated with their careers. Injuries are common in the NFL, and they can often lead to early retirement. Players should have disability insurance in place in case they’re unable to continue playing. They should also be mindful of the tax implications of their contracts and investments.

By taking these steps, NFL players can help ensure that they’ll be financially secure both during and after their careers.

Lower taxes

Players in the National Football League (NFL) are some of the highest-paid athletes in the world, but that doesn’t mean that they are immune to financial difficulties. In fact, a recent study found that 78% of players are either bankrupt or under financial stress just two years after retirement.

There are a number of factors that can contribute to financial difficulties for NFL players, but one of the biggest is taxes. Players are often shocked to learn how much taxes they owe on their large salaries and end up in debt because they can’t pay their bills.

One way to prevent this from happening is to educate yourself about the tax laws and make sure that you are taking advantage of all the deductions and credits that you are entitled to. You should also consult with a financial advisor to make sure that you are making smart decisions with your money.

In addition to taxes, another factor that can contribute to financial difficulties for NFL players is poor money management. Many players lack the skills and knowledge necessary to handle their finances properly and end up making bad decisions that cost them a lot of money.

If you want to avoid financial problems after your NFL career is over, it’s important to make sure that you are proactive about managing your money and making smart choices with your finances. You should create a budget and stick to it, pay off your debts as quickly as possible, and save as much money as you can for your future.