The Super Bowl of Bankruptcies
It's Super Bowl Sunday in our great nation. I've got a bowl of chips and salsa next to me as I write about the connection between football and bankruptcy. Yep. Let this be our little secret that in the world of football, bankruptcy is not an uncommon decision.
Leigh Steinberg, was once one of football's most powerful agents and the real life Jerry McGuire, now battles alcoholism and bankruptcy. Raiders legend Ray Guy was forced to sell his Super Bowl rings after filing bankruptcy. Even former Baltimore Colt quarterback Johnny Unitas once filed for bankruptcy protection back in 1991. Philadelphia Eagles quarterback Michael Vick was touted as being the "Richest Bankrupt Dude Ever."
The financial problems that most people face are magnified by celebrity status and more money to
lose. There are dozens of football players who can't seem to manage those millions. It doesn't matter that the median annual salary for NFL players is $900,000 because nearly 80% ( as some estimate) squander their fortunes shortly after their retirement.
Former Pittsburgh Steeler lineman Dermontti Dawson listed $69 million in debts when he filed for Chapter 7 in 2010. He was reported as "following in the footsteps of Kentucky Wildcat Antoine Walker, former National Football League center." New York Jets backup quarterback Mark Brunell, filed bankruptcy while still on the field. Why do you suppose the NFL is plagued with financial problems among their players and agents? It's simply a combination of their risk-taking DNA, coupled with poor investment choices, frivolous spending, hiring friends and family as financial advisors and falling victim to financial predators.
The lesson here is that we all need to learn life skills and managing what we do have. It is so basic to accounting principles that you absolutely MUST have a budget that lists all your income and expenses. When you know where all your money goes to expenses, only then can you adjust, shop for cheaper expenses like insurance and cell phones, etc. Learn to distinguish between a "need" and a "want." Get your emotions out of your bank account! If you spend your monthly income on paper before the money even comes in, you've created a budget. Using the budget as your plan you can eliminate emotional spending by simply transferring the money where you've intended it.
