Why Is Rocket Ismail Broke?
This article came out several weeks ago on yahoo and it made me think very long and hard. You have to wonder who was the Rocket’s last agent? Who was advising him in financial matters? Anyone have any clue? I think I do…
By Chris Chase
Within two years of retirement, 78 percent of NFL players are bankrupt or in severe financial distress. Unlike Rocket Ismail, most of those players can’t blame it on the negative karma associated with getting a bear hug from Michael Irvin.
How is this possible? The minimum salary for rookies in 2009 is $310,000. That jumps to $460,000 for two year veterans. How can men who earn so much have so little after retirement?
The Business Insider looked at that question today and listed 10 ways that sports stars destroy their finances.
Most of the reasons fall under the umbrella of one of the ways, “Act Dumb”. (These include “Do Drugs“, “Fight Dogs” and “Have Too Many Children”. Two outta three ain’t bad, Michael Vick(notes).)
Other paths to financial ruin like “Put Money in a Ponzi Scheme” or “Invest Too Much In Real Estate” can be more about bad luck than anything, but never underestimate the power of habitually poor judgment. (Or stupidity. Tomato/Tomahto.) Case in point, here’s a blurb from the “Making Bad Investments” entry:
Rocket Ismail also squandered a fortune funding an inspirational movie; the music label COZ Records; a cosmetics procedure whereby oxygen was absorbed into the skin; a plan to create nationwide phone-card dispensers; a Rock N’ Roll Café, a theme restaurant in New England; and recently, three shops dubbed It’s in the Name, where tourists could buy framed calligraphy of names or proverbs of their choice.
Who might this be?
It seems like these guys because they think they’re invincible on the football field feel as though they’re smart when it comes to money and hire idiots or con artists to manage their money
I agree with the comment above that most people have way too much overconfidence when they handle their money, and successful athletes are likely to have this overconfidence even more so than the average person.
But pro athletes are also marked targets for swindlers, as well as people who are trying to fund half-baked business ideas (there might be little difference between the two!). Regarding the former, stories about athletes being taken advantage of by their managers and advisors are a dime a dozen, and regarding the latter, clearly Ismail ran into more than his share of half-baked business ideas.
Unfortunately, these athletes are at risk if they handle their own money, and they are at risk if they outsource it.
If I were advising a pro athlete, I’d recommend him or her to watch and model after LeBron James. There’s a guy who understands that his money is ultimately his responsbility, and he’s invested a lot of time and energy learning and understanding how to handle it himself.
Dan
Casual Kitchen
I added your blog to bookmarks. And i’ll read your articles more often!