Career Athletes and Bankruptcy

 Posted on March 11, 2014 in Bankruptcy

The 2014 Winter Olympics has just wrapped up and all eyes were on the incredible athletes from all around the world who have spent their life training for the big event. Although the Olympics is a celebration of all their hard work, it’s easy to underestimate the amount of time, energy, and financing that goes into preparing an athlete. Whether it’s the Olympics or professional sports, there’s a lot of hard work to get to the top. Some athletes struggle financially before or after their sports career, many even filing for bankruptcy.

The list of professional athletes who have gone bankrupt is longer than you might think. There are several reasons why they get there, but a primary one is poor financial planning or a series of hardships that threw them off course. Especially for younger athletes, not knowing how to properly manage their money can be a challenge too great, leading them to financial struggle mere years after their wealth accumulates.

According to a 2009 study, NFL retirees have a higher average income than men in similar age brackets of the general population. When that study broke down by age, however, younger athletes had higher numbers of sports stars with income close to or below the poverty level. A quick rise to fame can be difficult for younger athletes. Celebrating their big payoff after years of hard work and investment might mean financial difficulty and bankruptcy down the road as a result of poor financial planning.