Posted on 04/16/2015 5:20:28 AM PDT by SeekAndFind
If I was getting a paycheck that size, I’d probably buy a Ferrari with my first or second pay check.
But I’d sock away at least 50% of every check thereafter
And one thing i would not do is spend $25K-50K every time I went “out on the town”.
I believe it’s a Scottish proverb that states “sudden wealth destroys a man.”
“I would guess that the NFL has a “save your money” lecture as part of their “Welcome to the NFL” orientation. Unfortunately, few young men are likely to listen.”
They have that, they have code of conduct briefings, they have ethics briefings, they have know who your friends are briefings. Anything or anyone who can take your money, your freedom or your life is discussed with experts in the field.
Being sympathetic to these ingrates is not resonating with me.
The same people that want to know that 84% of NFL players beat their wives, and that the remaining 16% are turdburglars.
Purely from a public relations point of view, if nothing else. I remember when I was in high school, Joe Namath signed with the Jets, and part of his package was a $100 dollar a week life annuity. I remember a classmate saying, "Think about it, he can never be a poor man,"
They could introduce a league rule (with the cooperation of the union) requiring a certain percentage of the players' income be in the form of deferred compensation, i.e., a pension. (Doesn't MLB have a pension program?)
The NFL minimum salary is $420,000/season. Even if 25% were in deferred compensation ($105k), a 6% annuity would only yield $6300/yr, not enough for health insurance. Still, no one should expect the NFL to support every one who ever played one season for the rest of their natural life.
Who paid for this “study”? It was probably us taxpayers. We don’t care about this crap. Just more waste.
If they’re not smart enough to handle that much money, then they shouldn’t have it. Not my problem.
A relative’s home was sold to a player on the Tennessee Titans this past month. Hmmm.. I wonder if the relative could buy the place back for pennies on the dollar after a few years? : )
Similar happens with many of the quick-rich lotto winners. They spend like it will last forever. Then they end up broke.
The number is low. I think Sports Illustrated posted a stat a few years ago that 78% of all retired NFL players are broke, unemployed, and divorced two years after their careers are over.
WHO CARES?
Persactly!
There was a saying when I was in the service that on payday certain people were N——r rich, that being the Day after payday they were broke after spending all of it foolishly. Of course that was 40 plus years ago I am sure that expression is rarely used now.
I thought the number would be much higher
http://jasoncollins.org/2013/11/18/cross-country-variation-in-time-preference/
An interesting article. Some excerpts:
The paper was based on surveys conducted on university students in 45 countries. The first question on time preference was whether the subject would prefer to receive $3,400 now or $3,800 one month into the future (a wait-or-not question). The responses to this question showed a large degree of variation, ranging from 8 per cent of Nigerians who were willing to wait for the $3,800 versus 89 per cent of Germans. Austria, Switzerland, Denmark and Norway also had well over 80 per cent of the survey subjects who choose to wait (amusingly, some students in Norway complained the question was ridiculous as everybody would choose to wait). When the groups were split by cultural groups, Germanic-Nordic and Anglo groups demonstrated the highest level of patience, while the African group was the lowest.
The implicit risk approach is mathematically equivalent to a quasi-hyperbolic discounting model, which is a tractable approximation of hyperbolic discounting based on a large initial discount for any delay, and then a constant lower discount rate beyond that point. Despite that mathematical equivalence, the implicit risk approach is typically treated as a rational response, while quasi-hyperbolic discounting is usually based on concepts such as lack of self-control.
Fools and their money....
Every child in America should be required to take a class on managing money, saving, compounding interest, living below your means, ect.”
IMO junior and senior high school students should all take a mandated course in financial life skills. Should include budgeting, balancing a check book, the cost of borrowing money, lease versus purchase, smart shopping techniques, self-employment, etc.
I didn't see how far back these stats went, but it mentioned 12 years from retirement. That means the latest players in the set retired in the early 2000s and would have started their careers in the early 90s. If the survey started 20 years before that, lets say, it would cover players who started playing in the 70s. That's not the big money era. The marquee players got paid well but many players worked in the off season back then and were not making fortunes. Many many of these guys took serious beatings on the field then took pain killers to cover it up. I'd bet he medical costs for these men 20-25 years later are substantial.
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