Summary of (How and Why) Athletes go Broke Essay

Summary of (How and Why) Athletes go Broke - Essay ExampleIsmail Rocket admits that he has lost millions of dollars knocked out(p) of total ignorance. Athletes tend to invest in highest-caliber private deals no more than 1 in 30 of which every works out as advertised. materialistic spending seems like a boring idea to the athletes. Instead, they prefer investing money in inventions, nightclubs, and other innovative ideas with a thrill of tangibility. The inflatable jam invention that Hunter invested $70,000 about five years ago was one such trap. The investment partner asked Hunter to invest up to $500,000 more. Upon Hunters refusal, the investment partner vanished along with the original money. Much money is lost when athletes attempt to sell their possessions at a much lower than justified expenditure in urgency to make up for other losses they are incurring. An example is provided by Muhammad who after having his music company sued offers his 8,200 sq. foot lakeside demesne w ith unique features for a price that is $800,000 lesser than his original demand. Athletes get into sports at such an early age that they miss out on colleges and are non formerly equipped with the knowledge of finance and accounting. Neither have they much sense nor much time to get into the intricate details of their monetary matters. economic system and growing money requires very critical decisions that cannot be made without careful assessment of the pros and cons of each option. Lack of awareness about the industry standards robs athletes. Athletes give their financial matters in the hands of novice and often unfaithful friends and family members in their attempt to assist their friends and family members financially. They are careless and irresponsible in distribution of authority to others regarding their make financial matters. In 2001, Strickland asked his dad who was a retired lieutenant colonel in the Air Force to look over a real-estate deal in Georgia that was on s ale for $1.8 million but whose price had been appraised by $3 million. His father clearly wasnt capable of making the right decision and consequently, Strickland had to far pay for the piece of land than what it was worth. Most players dont know how well they are doing because their financial matters are entirely in the hands of others. Many of the passel they trust are actually frauds. Kirk Wright, the fund manager of Atlanta hedge was convicted on 47 fraud and money laundering counts and he had more than octonary NFL players in his client list. Overpaying is common among athletes. A former major Dominian Republic leaguer who got his financial matters taken care of by an adviser he had trusted for 18 years paid $5,000 on two cars insurance monthly while Hunter could get away with paying only $250 a month for threesome cars. Divorce is the worst thing that can happen to an athlete financially. Pro athletes have a high divorce rate. Half of their net worth is routinely lost in di vorce proceedings. The fact that most divorces happen in retirement after termination of the peak earnings period complicates the matters further. Athletes have a much lower prenups percentage compared to nonathletes that are at the same economic level. Calling off nuptials cost Dikembe Mutombo $250,000 when just a day in the lead marriage, Michelle Roberts refused to sign a premarital contract. Children and aversion to family planning are additional family related causes. Athletes are