Athletes: Gone Broke?

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LeBron. Kobe. Beckham. Woods. Federer.

What do they have in common? Sports? Fame? Endorsements?

Everything that you thought of them is true. In fact, we admire them. Seeing them play in their playground is really awe-inspiring. Together with the instant celebrity status that they enjoy are the hefty paychecks they receive.

Recently, Yahoo! Sports released an article about athletes who lost it all. These are the sportsmen who filed for bankruptcy in the recent years. The list includes Scottie Pippen, Latrell Sprewell (Former NBA players) and Mike Tyson (Former Heavyweight champion).

Despite earning millions and millions of dollars in their careers - compiled from salaries, endorsements, TV appearances and guest appearances - it is sad to know that they still went broke. Pippen and Sprewell earned at least $100 million dollars throughout their careers while Tyson earned a whooping $400 million dollars. How come these large amounts of money vanished just five to ten years after their retirement?

Their bad investments are one reason. They invested their resources in the wrong businesses, thus depleting their hard-earned money and hastening their downfall. And when there was nothing left, their partners left them kneeling.

Another is their luxurious spending. Some athletes have become so accustomed to the life of excess that they have more cars than children. A lot of athletes also buy mansions and eat in fancy restaurants frequently. That's the pitfall of having a hefty paycheck.

The third reason is their marital and legal issues. Some athletes face cases here and there; they have wives and children whom they have to tend to every month. Most professional athletes have divorces after they retire, when the pay checks are no longer coming in. And according to the American divorce law, the wife is entitled to half of the husband's assets, including everything he earned during his sports career.

Having a whopping paycheck is a blessing. But spending these in an ill-advised way could spell trouble. On the contrary, spending it the right way is one way to keep the money flowing. Investing these on productive businesses is another. It is good to take note that money comes and goes. That's why, when you let it go, you should at least know that you would get something of the same value in return.

Terry Powell is always willing to lend a helping hand to keep your money productive, even after your sporting career.

It is way better to be remembered, not only as an athlete who dominated a certain sport, but also as a successful businessman who dominated the market.