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Powerful athletes haven't made right to play game for a living there worshipped by many and they get paid a fortune for doing what some -- the part time job.
The average sat -- music.
The average salary each of the four major sports is in the millions of dollars -- -- selling music -- the top players making many times that.
And that is not even including bonuses.
So would you think where you would think I guess that life after sports would be financially secure for most of these guys right wine and roses.
Not so in the -- alone get this.
A shocking 78%.
Of retired players had either gone bank -- Or under financial stress after being out of the game for only two years folks sports -- reporter Pablo -- joining us got to find out why he joins us.
This is like an MC hammer type scenario and -- Cameron and -- tech economics I like that.
Making 2030 million dollars over four and five years to not only between nine and are broke or bankrupt by 32.
How is that possible.
Well in the store we sort of cut -- anatomy of the causes.
Up in short for quick reasons -- Favorite change ability as credibility they favor the car dealership the record label the bar the rest exactly how -- put their money money place they can go and be a big show exactly that's the first thing the second thing would be that they trust.
And they trust the wrong people they cost too much because the -- people meaning their friends is an -- They don't double checked there their bills they had everything sent to somebody else so they don't have to look at it.
They -- family members to meet with the leaders story it's.
Give -- one of the NFL players is dead.
Was his manager and his dad got involved in the deal and it went bust exactly you trust somebody else to do the work for you when it's not -- the night and talk about being an expert in finance.
I -- -- actually looking at the papers yourself just doesn't happen in that world.
The third thing -- -- -- -- and we planning meeting divorce and paternity -- which is a huge problem today we see Travis Henry.
This past dying kids by nine different women he just had twins eleven by ten.
You're kidding eleven by ten and -- actually since the story broke eleven kids by ten women.
And that Jerry Brown -- who passed away for years ago we had seven kids by -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- And in the fourth thing we talk about is of course conspicuous consumption from this peer pressure to spend if not only.
From the guys from your neighborhood but also in the workplace of the team playing the locker room clubhouse.
Guys don't wanna be the one eating at Taco Bell dropping the Toyota even be -- conservative investor in AAA.
You know -- ultimate -- these guys -- quote ever look trial spree well turning down that 21 million dollar contract years ago quote.
I gotta feed my family exactly well you know you wonder if this Italian family as the state of Wisconsin that.
Then maybe yes you have to feed your family come -- -- exactly know you're absolutely right in the boundaries of family and friends expand when you get into the lead.
You don't know who you're providing for your buying houses for all the people you've never seen before because.
Oftentimes quick -- these guys are magnanimous you know they're not bad guys.
What they don't have the equipment or the wherewithal or even the drive and determination to monitor exactly where their money's going -- joining us now -- couple people who have seen a lot of these bad financial decisions firsthand.
We're joined by Baltimore with former New York Mets -- -- manager Jim Duquette and from Irvine California.
Super sports agent Leigh Steinberg gentlemen thank you both very much up -- listen -- you Leo representing somebody's folks.
Odd not the guys we just talked about but in general athletes superstars wealthy people.
What kind of advice can you give -- why -- making these mistakes.
Well fortunately most of our clients have.
Gone the other way and a tale of two cities you have one group of athletes who use very sophisticated financial planners who are ethical.
And at the end of their careers.
People like Bruce Smith.
Or Ron Amadon or Brent Jones.
Are running businesses are financially set for life or.
To run chair -- or ray Childress for actual owner for pro football team so they.
Have learned the lessons the crew of the financial.
Acumen and are actually the owners -- -- for life now the other four.
Takes you down a road.
A bad financial advice and then.
Your number one cause is bad investments.
Number two would be divorced and number three would be.
Trying to support an extraordinary number of -- members.
The problem is that there -- not courses given on college campuses in budgeting financial planning.
And you have athletes will sit on a college campus and all of a sudden in a sport like football they can receive as much his.
Thirty million dollars in guaranteed signing bonus and it put so extraordinary.
Amount of pressure.
On them to find the right financial planner who make it -- teaching and empowerment.
Process where they.
Learn how to budget learned financial -- leading figure younger undefeated they -- they learn anywhere in this process.
How babies are made.
You know they have seminars that are given for example in each of the major sports before they ever go into the sport.
About how to be careful.
They actually -- how to put on protective devices you're not talking about a helmet -- -- exactly of a handle calls that a client down in our office and we.
Acquaint them with all of the dangers that come with being a professional athletes so they.
Right now the NFL PA for example.
And credits that the certified.
Go ahead and do the financial planning advice but -- some voluntary program.
And one of the problems is they go to the college campuses just like the agents do and try to sign rookies right off the campuses.
I -- before they can get the training basically.
Let's -- jacket please and it is fringe indicator for a second it -- not everybody can be David Wright Wright the Mets star third baseman and he invested in vitamin water was sold to -- -- David Wright probably does it need to play baseball again.
But not everybody can be David -- You've run a sports team to -- what kind of training he would give these people when they get those kind of bonuses that's.
I'm -- talking about.
You know lot of training that we would -- would happen in a minor leagues and leagues right -- also.
Send our players this rookie career development program at sponsored by Major League Baseball once they get to the Major League level -- there's not a lot of training and admit it relies on their agent.
Or maybe sometimes they're their financial advisor maybe it's a family member and I their right.
Unfortunately for situations are unlikely David Wright -- -- they're investing.
Maybe there's an investment manager trying to raise money they get with -- one player in the clubhouse they -- -- investor money.
And then that player you know is considered to have vetted out to his friends they call his body.
His body and that's without even asking any questions that situation actually has gone on in the last two within the last year at the Major League level that I would.
-- myself Jim public -- from Sports Illustrated here one of the questions obviously.
For example can.
Major League Baseball or a team even be obviously you know Wal-Mart does intelligent police what to do and it's portfolio's -- didn't tell me how to invest my money.
Talk about treading the line between actually.
Tell the guy and know how much -- in -- held without.
Crossing that boundary.
Really what's yet to do yet again it -- and try to -- Put them to a financial -- -- -- and it did not commit.
Push them to anyone financial advisor but make sure that they get it vetted out properly a lot of times there's not even a bidding process.
Lee you know we send our good -- there -- go ahead.
Well we send our players to two or three financial planners who have been.
Approved by the union and then they talk it out but the real key is to make sure is that in this process they are educated and empowered.
So they're learning all the basic skills and they have a safety net underneath them no one expects them to.
Have a -- all of the ability to evaluate and endorse.
A any of the great investments out there but frankly most of them would be better off had they put the money underneath their mattress.
Then to go into some of the investments that they had done there is so much money president.
For a high draft pick or a star player of the sports are different in football they -- with big bonuses in baseball it takes him generally Intel.
Arbitration or free agency and in basketball until they.
Max out in their second contract.
But there's so much money for a player who plays a long period of time in -- only is not too much spending that does that they really have to.
Be in bad investments or to be in a divorce to really have cataclysmic event occur so.
The key is to get them in the hands of someone that's gonna give them good advice we we got out of there although it Leigh Steinberg good advice as always thank you very much Jim Duquette thank you public -- Sports Illustrated thank you all of.
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