As more and more stories emerge about the difficulties for athletes post-retirement, they carry different flavors. The NFL-based stories often center around concussions and the bad dreams, dizziness, and headaches. But another aspect of these tales focuses on financial issues for many professional sports after their retirement. Sports Illustrated found that 78 percent of NFL players are either bankrupt or in financial distress, for example. Barry Bonds wants a job after retirement, ostensibly to be around baseball but, let’s be honest, he shouldn’t need a job with the money he’s made.
The main issue revolves around spending habits. Professional athletes do not understand that luxury does not equate to necessity. Watch one episode of the old MTV show Cribs and the features of these homes defy the imagination. Multiple cars (for a one or three person household), huge television and stereo equipment, automated this and that—it’s all there.
And yet, plenty of Americans choose to channel their wealth into big homes and cars, so that seems reasonable enough. Maybe not custom interiors and all, but there are worse ways to spend your money. Unfortunately, athletes also spend millions on those things.
This past week, DeShawn Stevenson tweeted a photo this past week of an ATM in his house. Lots of folks relished the idea, so much that Doug Gottlieb on his radio show asked fellow analyst Tim Legler what Tim would like to have most in his house. The fact a former athlete and reasonably intelligent analyst would disregard the true problem of the purchase speaks volumes about our culture. People are expected to live in a certain amount of luxury for no reason other than, when you have money, that’s what you do. Athletes aren’t any different, but with more money comes more abuse if you’re not careful.
Purchases like an ATM in your house make no sense. Perhaps he wants to buy a few Bentleys, or a bigger house. Excessive, but not unreasonable avenues for wealth. But, seriously, an ATM? I don’t know how much money it cost him but, frankly, it doesn’t really matter. If athletes have money left over, they should be investing it and letting it grow. Jeff Foster, a former Pacers player, invested his and was able to retire whenever he wanted because he didn’t need the paycheck.
The norm, however, shows athletes entering serious financial duress, often for habits they do not control. Former NBA player Antoine Walker, a fixture on the Boston Celtics, ran up almost $900,000 in gambling debts in addition to jeweled watches and “closets full of suits.” His regular trips to Vegas of VIP living certainly did not add to the financial fun, as he now wastes away in the NBA D-League. While he represents an extreme case, athletes everywhere go broke quickly after retirement. In addition to the SI poll taken above, according to the Toronto Sun-Times, 60% of NBA players are broke five years after they retire. Look at this list of ten athletes who lost tons of money in one form or another. Bad investment decisions are more understandable, but still if an athlete can buy an ATM he can certainly pay for a top-notch financial advisor. For a former cornerback of the Ravens, Chris McAllister, to be living in his parents' home definitely makes me think being a sports icon might not be all it’s cracked up to be.
And yes, this problem starts early. Just Tuesday, SI ran a great story about a minor league baseball player who used steroids and, at one point, told a teacher he “didn’t need [school], I’m gonna play baseball and make more money than you can think about.” That attitude needs to be rooted out, mainly because sports can be a profession for only so long after college, and a financial cushion afterwards will require planning ahead of time. One of the great aspects of sports, however, contributes a little to this phenomenon. Not all, or maybe even most, but many athletes come from impoverished or downtrodden communities where the phrase “more money than you can think about” represents reality. Unsurprisingly, when these young kids start making millions, they spend it.
In those cases, athletes cannot be expected right away to understand the realities of personal finance. Whether it be their parents, friends, or the mentor they all have, someone needs to step in and create the financial education. Personally, I favor college coaches requiring that kind of class for their team. For some reason, those coaches have a marvelous hold over many of their players and encounter few problems generating respect. Make personal finance classes a requirement, either through the university or team. If the NCAA regulates text messages, the least they can do is attempt to provide good financial education to prospective pro athletes.
The thought of having an ATM in my house is undoubtedly tantalizing, but the story reflects a point about athletes that we fail to realize. We live so much in the sports moment, the present, that when things go south for these guys in the future very few care. So, don’t Tweet about how cool DeShawn Stevenson is. Might be cool now, but I would not be surprised if Stevenson loses that ATM and a significant portion of his wealth in the few years after retiring. Heartless isn’t it? But, that’s the way of the world and until athletes understand they should not be spending that way, the same stories will emerge every year.
Bit #1: All-time great retirement
I admit I know more about hockey than the average bear. I also know many of you have figured this out by now and would rather not give hockey much of a second thought. But, there are points where each sport deserves attention.
On Thursday afternoon, an all-time great defenseman, Nicklas Lidstrom of the Detroit Red Wings, retired after 20 seasons in the league. During that span, the Swede scored 264 goals, amassed 1,142 points, and maintained one of the best defenses every with a 450-plus rating. He played 1,564 total games, won the Stanley Cup four times and the Norris Trophy as the best NHL defenseman seven times. By the end of his playing days, Lidstrom spoke English like a true Canadian without a touch of a Swedish accent, further proof that no matter how hard the U.S. tries, half of the NHL players speak Canadian English anyway (at least enough to change a guy’s native accent).
What amazes me about Lidstrom, however, is his durability over the years. This past year, he missed a career-high 11 games. I don’t know how that’s possible in today’s day and age. Baseball players spend time on the 30-day DL all the time in a sport without as much contact as hockey. For a well-tenured player like Lidstrom to play for so long takes remarkable physical ability, but to miss so few games truly defies expectations.
Bit #2: Yet again, officiating mars a game
I’m going to jump on this bandwagon shamelessly. By now, you know my thoughts on NBA officials, scum that they are, and how the standards of officiating in the NBA are now so dilapidated everyone expects some form of meddlesome officiating. Talking to a friend last night, he said “even if they don’t give certain calls, refs know how bad they are so they make it up in later games, prolonging the series which conveniently boosts ratings.
The Celtics-Heat series has been entertaining to this point, mainly because you can see the reluctance of aging scions of the game to relinquish their prominence to upstarts, poised to 2 games to none to end the series quickly. The free throw disparity between the two teams is large, with LeBron taking 5 less shots than the entire Celtics combined, but the Heat’s style of play does create some of that difference. Wade and James attack the basket, drawing contact more than the primarily jump shooting Celtics.
But, the missed call on Rondo late in the game really did have an effect. The Heat took the ball down quickly and dunked, never letting the lead go after that point. The foul is not difficult to call, especially when the referee is standing right there. I’m not saying it would have changed the outcome necessarily, but if Wade and James get the same treatment than the guy scoring 43 points should get the same as well.
Bit #3: There can’t be a conspiracy in the Lottery
The NBA Lottery assigns the top picks in the NBA Draft to teams based not on record (in other sports, the worst record receives the top pick the next year) but on a record-weighted probability. If you finish with the worst record, you have the highest probability, somewhere around 25%. Numbered ping pong balls are chosen out of a globe and the digits are then matched to a series of combinations. The team with the winning combination gets the top pick. The other picks are selected in the same fashion, with no team getting more than the picks it has in the draft.
Yesterday, the New Orleans Hornets, only recently owned by the NBA, won the lottery with a small 13.7% chance of winning. Before too long, NBA execs leaked they were unhappy. Last year, the Cavaliers won the lottery the season after LeBron’s departure, prompting Wolves GM David Kahn to proclaim it “ridiculous” when he should have understood just how bad his own decision in past drafts have affected this team (so much so he would have wasted the first pick anyway). Given the potential conflict of interest in New Orleans and the favorable result to Cleveland last year, it all smells funny to many folks, owners and fans alike.
But a conspiracy sounds impossible from where I sit. To increase transparency, plenty of reporters spend time in the back room watching the combinations drawn. Every single one of them admits a conspiracy would be almost impossible based on what they see. And, in truth, they’re right. If there was a conspiracy, someone would have talked by now. The amount of money to be gained from the book deal that exposed the NBA would be outrageous enough to get someone to talk. I trust people but money would absolutely open someone’s mouth for that kind of prize. In the end, there might be some questionable results, but I don’t remember anybody complaining when the Wiz won the top pick. So, everybody take it easy.
Bit #4: Diddy’s son should keep scholarship
This week, Justin Combs the son of rapper Sean “Diddy” Combs committed to play football at UCLA next year on an athletic scholarship. Some folks called on him to forego the $54,000 scholarship and walk on due to his wealth (his dad has estimated net worth of $550 million), an action both the Combs family and UCLA refuse to take.
I have to agree with them. If this were an academic scholarship then it might be different since there are plenty of smart kids who wouldn’t be able to afford UCLA even with the grades. But athletic scholarships are based on athletic ability, and while there are poor high schoolers looking to go to college through football, we all know with enough research most can find a school with a scholarship. Athletic scholarships never have, and never will, factor in socioeconomic factors and they shouldn’t.
In addition, do we really think he’s the first rich man’s kid to get a full ride for football? The response makes it act as such.
Bit #5: Triple Crown possible this weekend
Tune in on Saturday to the Belmont Stakes. I’ll Have Another could become the first Triple Crown winner since Affirmed in 1978. Keep in mind, however, that the Belmont track is 1.5 miles long, not 1.25 miles in the Preakness and Derby. He’s won at the end of races thus far, but will probably need to be a little closer coming to the final turn to win again. Personally, it would be great if it happened, but I don’t see it.
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