The story of high-paid athletes going broke is as common as the stories of lottery winners filing for bankruptcy. It’s hard to imagine that someone who is making millions of dollars a year can squander all that cash, but it happens all the time. The fact is, if you didn’t grow up with much money, one of the most difficult things to do in life is handle vast sums of it. Money winfalls are not as easy to manage as one might think. For example, it seems as if once you have money, everyone in the world can justify why they deserve a piece, and will do nearly anything to tap into your wealth. This can include family, friends, and many strangers.
1) Bad Investments
In many ways, being a professional athlete is epitomized as one of the best jobs in the world to have. Most kids, and adults, dream of being able to catch a Super Bowl touchdown, strike out a batter to win the World Series in game seven, or crush a forehand down the line to win Wimbledon. Yet, due to the strain on bodies, the life of an athlete is short. Despite the high-level of money you receive in a short time, many athletes are prone to venturing into a variety of investments to keep money coming in during, and after, they’ve retired from playing.
While this may seem like the smart thing to do, there are plenty of people out there who will oversell an investment to grab a chunk of your wealth. Big names such as Antoine Walker, Curt Schilling, and Evander Holyfield have lost between $50 and $250 million in investments such as real estate, video games, and their own businesses.
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