Why Do Rich Athletes Go Broke?
Certified Financial Planner Don Padilla Knows Why – and Wants to Help
The average professional athlete will make more money in one season than most Americans will make in their entire lives – but many of them will blow their fortunes.
“Despite those amazing salaries, 78 percent of NFL players, 60 percent of NBA players and a large percentage of MLB players file bankruptcy within five years of retirement,” said Don Padilla, a Certified Financial Planner ™, National Football League Players Association (NFLPA) Registered Player Financial Advisor and author of the soon-to-be-published book, “Not Another Broke Athlete.”
How can this happen?
“Over the years, through interviews with athletes and market research, I have identified four major reasons for this epidemic that is running rampant in the world of professional sports. If these issues are not addressed, it doesn’t matter how much money athletes make during their careers — they will spend it all and then some, often leaving them worse off than they were before they started playing,” he said.
Here are four major reasons why so many of today’s professional athletes go broke:
- Living beyond their means
- Poor investment choices
- Family pressures
- Bringing the wrong people into their trusted circle
“Now is the time for us – athletes – as well as regular folks to be accountable and responsible for where we are at in our lives, financially, and more importantly spiritually and mentally,” he said.
“Not Another Broke Athlete” is a spiritual awakening not only for athletes but also for all people who want to break the chains of poverty or a scarcity mindset. Whether it’s passed down from our parents, parents’ parents or parents’ parents’ parents who have lived through bondages, holocausts, genocides, depressions or recessions, if we aren’t aware of the limiting beliefs and repetitive patterns of the mistakes of previous generations then we will continue living these vicious cycles of a poverty or scarcity mindset.
“Even if you are ‘rich’ financially you can still lead a ‘poor’ unfulfilled life,” he said.
The book will provide the tools to break these cycles of poverty or a scarcity mindset and lead anyone who wants to have secure financial future to a path to grow and protect your legacy, he said.
Padilla should know firsthand. He’s been kicked out of his home, broke, almost bankrupt, on the brink of divorce and – despite those setbacks – became – and stayed – a millionaire.