Athletes Out of Money

I read an interesting article in the Boston Globe recently about retired basketball player Ray Williams a k a Sugar Ray Williams when he played. I honestly do not remember him but I do remember his brother, also mentioned in the article, Gus Williams.

Williams had played in Boston as a backup near the end of his career during one of the mid eighties championship runs so there was a Boston connection.

His story illustrates what is something we hear about all the time. Athletes who make millions in their lifetimes going bankrupt and blowing through all their money. Growing up poor with no reliable financial examples is not a good starting point. This can lead to bad investments, extravagant purchases, and the two biggest problems drugs and or alcohol and the inevitable hangers on that follow many of the professional athletes.

Of course this should be no surprise to us. There is a television show that shows us lottery winners and what happens to them. All too frequently lottery winners end up in the same boat as these athletes.

What does it mean. It means that being responsible is a skill that is learned and assimilated. If a person is not responsible financially before they get money it is much more unlikely that they will be after they do.

Nothing is ironclad of course. Some athletes such as Magic Johnson have done very well and he is just one of hundreds.

The story told in the Boston Globe has a good ending. Larry Bird and Kevin McHale helped get this man on his feet (one wonders if his brother Gus could have or is in the same boat)

A common argument is that the NBA should do more to help those ex players down on their luck. I agree with this. One wonders though in these days of immense salaries if todays players might be well instructed to pay a portion of this retirement fund. It would certainly make an investment against potential later misfortune.