Tag Archives: broke

The NBA Needs To Share It’s Revenue!

It’s a shame that in the NBA, or as Bill Simmons calls it, the No Benjamin’s Association that the rich do in fact get richer. No, this isn’t a rant on how the Lakers will probably land some stud at the trade deadline for a poo poo platter of expiring contracts or practice squad guys. This is about how the league is structured. Looking around it’s immediately obvious that teams stuck in small markets are going to lose money. Being a good team is supposed to raise you from financial destitute, but in a league strapped for cash, this isn’t happening anytime soon. With 40% of teams losing money last season, and the economy looking unlikey to turn around the NBA does have the most financial problems of all the major sports. Unless you count NBC, the NBA is probably the next closest organization in need of a Heidi Montag style face-lift.

It’s troubling to see how many NBA organizations are struggling to stay afloat without some good form of revenue sharing in place. It’s a travesty that teams like the Clippers, Knicks, and yes my Warriors make ten-million plus dollars profit each year, and field teams that would have a tough time beating the Washington Generals. Yes, these are the teams that I deem the greediest in terms of giving back to their fans. They do relatively nothing to improve their rosters, and they have plenty of income that could be spent to improve their respective teams. I don’t mind some of the teams atop the list, since the Lakers do deserve to make more money, because they do always put a good team on the court, but I feel that a teams revenue should be more driven by their ability to win. It’s been quite awhile since I broke down some financial situation, and most of this post is derived from Forbes numbers that they released on the teams earnings from last year. Continue reading


Go For Broke!

sports

In these tough economic times, when it feels like your money isn’t going all that far, just remember that there are plenty of people that are worse off than you. USA today had a study on athletes, and it found that 78% of retired NFL players are bankrupt within 2 years, and 60% retired NBA players are broke within 5 years. So congratulations to all the rookies out there! They’re usually thrown into the glamorous filled lifestyle of the rich and famous, but that life is usually abruptly ended, and they end up being just an anecdote in one of my pointless posts! Far too many times we see athletes blow off hundreds of millions of dollars, but there should be no reason to be surprised. They have to realize they just can’t blow through cash like Joey Chestnut powers down hot dogs! Here is a list of things that some players didn’t realize weren’t within their means.

Taking the Lil Wayne approach. This guy already has two kids and is about to have two more with two different ladies on very close due dates.

Travis and six of his eleven kids

Travis and six of his eleven kids

I’m not saying don’t have kids, but he could easily go broke down the line just like Travis Henry who has 11 kids with 10 different women. In March of this year he was pulled over and arrested for failing to pay $16,600 in child support. He is currently in jail for trafficking cocaine. Shawn Kemp ran into similar problems having at least 7 kids with 6 different women.

Buy cars, actually buy many many cars! Jack “the Ripper” Clark owned 18 cars at the time he filed for bankruptcy, and 17 were not paid for in full including a 1990 Ferrari that he owed $300K on. In 1992 he owed $11,459,305, and had only $4,781,780 in assets. He was still in the second year of a three year $8.7 million contract from the Red Sox while filing for bankruptcy.

Buy a private jet. Burn money like it’s going out of style! Scottie Pippen borrowed $4.375 million to get himself a personal jet. Did you know that it costs about $50K to fix a windshield on one of those!?! I’m sure that insurance, fuel, and a personal pilor are good investments to ride in style to the next stop on the road trip. Apparently, he still owes the airplane company $5 million. Latrell SpreewellYou could go by sea if you don’t like flying. Latrell Sprewell tried to hide his 70 foot yacht in storage, until the bank foreclosed on his house and yacht. He famously turned down a 3 year $30 million contract stating “I’ve got a family to feed”.

Ballin out of control. Most players fall into this trap. They don’t drive their own cars. They don’t write their own checks.  They don’t raise their own kids. They just play their sport and let others pick off their carcass like vultures. Just look at how Vick turned out, as his friends ran his life outside football helping lead to his dog fighting ring.  For some reason most athletes set up a large support system behind them, and because they are the only ones supporting it they go broke! LaTroy Hawkins offers his advice to teammates “When I was a young buck, I was trying to spend all my money. Now I try to preach to young guys in the clubhouse who are like that. I’ve got all this stuff from 10 years ago — jewelry, rims — that I think, Why the f— did I even buy this?”

Screw up, deny everything, and fight it with all the lawyers and cash you have. Rodger Clemens sold his Bentley last year to none other than Bret Michaels. The sale of the car was reportedly to pay for legal fees. KareemKareem signed over his power of attorney, and then let an agent named Tom Collins have his power of attorney. It cost Kareem about $9 million before he figured it out. Mark Jackson was taken by one of his business managers who forged about $2.6 million worth of his checks to get his gambling fix. Barry Bonds seems like he’s well on his way to this dilemma.

So in the end, athletes are just like many of our own friends and people we know. Maybe our friends aren’t going bankrupt or quite as extravagant as these athletes, but we all know people living out of their means. A recent study suggests that if you make $35K a year you will never retire. I myself think I could contain my own spending if I hit the lotto, but then again I am a sucker for a friend in need and I can think of a lot of them that would probably hit me up.