Bankruptcy in the NFL is not uncommon. Sports Illustrated estimates that nearly 80% of retired NFL players are bankrupt. ESPN just did a 30 for 30 documentary showing high profile NFL players that are broke. The film discusses just how common Bankruptcy in the NFL is. There are a lot of lessons you can take from bankruptcy in the NFL and what it means to you.
One of the most recent high profile cases involved Warren Sapp, who filed for Chapter 7 bankruptcy protection earlier this year. Luckily for Mr. Sapp, he received a discharge of his debt. You too can utilize the bankruptcy system to get debt relief like him. Or you have the tale of Vince Young, who has reportedly spent all of his money and Michael Vick, who has paid back $30 million dollars to his creditors in his bankruptcy. On a much smaller scale, I am sure you can recognize the problems these players had in handling their money and how you can apply it to you in your life.
MSNBC recently discussed the NFL stars have made headlines because of their financial problems. Although NFL stars CAN make a lot of money, a lot of times their problems mirror our problems in real life. Like people trying to keep up with the Jones’, too much money is spent on flashy toys that are not needed, expensive cars that go down in value, jewelry with no investment value, and trying not to help out friends and family members experiencing their own financial problems. Unlike NFL players, you probably don’t have a financial adviser you can turn to to help steer you away from bad investments or questionable associates.
Do you really have to have the latest, greatest electronics, television, or stereo equipment. Are the rims on your car worth more than your actual car? Or as in the case of one of our clients, their two $40,000 trucks were worth more than their house. Where are you priorities? Do you have a savings or investment plan set up? Are you taking part of your income and putting it into an investment account? As Sabby Piscitellit, a safety for the Cleveland Browns said in the MSNBC piece, I do what my grandpa always told me: the first bill you pay is your savings account.
What about you people with kids what are without life insurance? what happens if you die? Who will replace your income? Did you know that for the cost of less than the premium cable or satellite package ($30 to $50) a month, you could have over $300k in life insurance coverage for your family?
We need to heed these tales of bankruptcy in the NFL. As these stories show, just because you make a lot of money, doesn’t mean you can’t lose it all. it’s just on a grander scale. Don’t live beyond your means. Don’t buy the latest, greatest toys. Buy a car, take care of it and keep it for a long time. Buy a sensible house you can easily afford. Too many people get too big of a house and then in the end become house poor. All of their cash flow goes into the house because they forget you also have to insure the house, pay taxes on it and perform maintenance on it.
One of the financial advisers in the MSNBC piece puts his players on a budget and makes them stick to it. You should too. If you don’t have the money, don’t buy it. And don’t borrow the money either. Bart Scott, a linebacker for the New York Jets imparts some great advice in the article. He says you can live like a king for a while, or you can live like a prince forever.
No one is telling you that you can’t spend your money at all. Just make sure you save some and by sensible items. You don’t want to end up like the players in bankruptcy in the NFL.
If you are lost and in debt and need some help, we can help you. This is not a road you want to travel alone. You need the assistance and advice of experienced bankruptcy counsel to walk you through your bankruptcy options and how to get you out of debt.
Please visit our website for more information about us and bankruptcy. You may also view our video with Bankruptcy Information.
Call us today at (713) 974-1151 to schedule a no-obligation consultation or feel free to email us at [email protected].
We provide bankruptcy services in the greater Houston metro area including the cities of Katy, Sugarland, Pearland, Friendswood, Clear Lake and Galveston. We also handle cases from The Woodlands, Spring and Tomball and cases in Baytown and Channelview.
We handle bankruptcy cases in all of these counties: Brazoria, Chambers, Galveston, Matagorda, Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, Wharton
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