NFL players declare bankruptcy with surprising regularity.
Warren Sapp, the seven-time Pro-Bowler and Hall of Fame defensive tackle, earned a whopping $82 million during his 13-year career that ended in 2007. By the spring of 2012, however, Sapp had filed for Chapter 7 bankruptcy. At that time, Sapp was still pulling in $116,000 per month at the time as a TV analyst.
Retirement is supposed to represent one’s golden years. But for former NFL players—who are typically out of the game by age 30—retirement is often accompanied by a slew of problems. Below are the 5 reasons why NFL players declare bankruptcy.
5 Reasons Why NFL Players Declare Bankruptcy
According to this CNN article, an NFL player in the league for six years earns $3.2 million—more than a typical college graduate makes in a lifetime. Yet nearly 16% of the players included in the study (the same number of players drafted from 1996 to 2003) filed for bankruptcy within 12 years of retirement. Why?
- NFL careers (and peak earning years) are short.
- NFL players ignore sound investing advice.
- When they do take advice, it’s bad.
- They get used to a certain lifestyle.
- They’re often crippled, mentally and physically.
You and I are not NFL players. We don’t make that kind of money nor do we face the dangers inherent in a full-contact sport. But similar pitfalls can lead to a bankruptcy for anyone — not just football greats like Warren Sapp. By the way, Sapp ended up paying off only $2.9 million of his debts, while discharging the remaining $7.8 million in his Chapter 7. Not a bad fresh start!