Bankruptcy Provention

Gerber, Ross. "Learning from Athletes That Go Broke." Learning from Athletes That Go Broke. N.p., n.d. Web. 11 Apr. 2013.

 

                                Have you ever wondered why so many professional athletes go broke when most make many million dollars a year?  Well in this article it explains some of the reasoning behind athletes and how to help them fix it. This article was very helpful in explaining why some athletes end up going broke, it is because they have bad business managers and live very lavish life styles. Many athletes like to go and spend their money at the clubs and buying expensive things for themselves and their families. This means they won’t have much money left to pay things like taxes and fall behind on paying taxes which leads to more fines and legal issues. Many athletes also choose bad business managers who can take advantage of the athletes and squander money from them. Also, these bad business managers can lead the athletes to make poor business decisions, and once these athletes retire who are used to making millions of dollars a year suddenly have no income. They want to continue to live the lavish life style and ignore good business managers who try to budget their money. The athletes end up not being able to pay for things and eventually go bankrupt. So, star athletes should have knowledge of what they are investing in, learn to budget their money, and hire good business managers to help take care of their finances.             

                                This is a great article written by an investing firm that all athletes should read. These athletes that come from nothing suddenly earn millions of dollars and don’t know how they should spend it. The athletes need help from business managers and others who can help them invest smartly and manage their money wisely. I think that when teams sign athletes to long term deals, they should provide a business manager to them that has been proven to be good with investments and can help out the athletes. This could help prevent many athletes from one going out and blowing a lot of money and could end up in trouble, and it could teach them how to manage and budget money which would help these athletes in the future. Athletes have a lot on their minds and have a lot of focus on their jobs. Having a financial manager provided by that team would eliminate the athletes from choosing a bad manager and could make a difference in how they manage money if they have money for the rest of their lives.