Ex Packer facing financial woes

[Forget Favre]

http://www.thepostgame.com/blog/dish/201111/nfl-quarterback-will-have-work-9-5-after-18-year-career

The interesting thing is that this is happening BEFORE he retires.

I understand that financial problems and bankruptcy is a big issue for tons and tons of former players.
Lately we've been hearing about Super Bowl rings being sold.
I think that's the tip of the iceberg on what's going on though.

 

[SpartaChris]

I almost feel bad, but not really. It was his job to know what was happening with his money and to control his risk. He over leveraged and now has to pay the price. It's sad that he can't retire and will have to become a regular working stiff after this season, but ultimately it's because of the poor choices he made. Can't feel too terribly about that.

 

[GreenBayGal]

Maybe it's a case of getting really rich really fast. Like people who win the lottery. I feel bad for the guy but no more so than any neighbor, USA, who is bankrupt because they lost their job & no longer have an income, as opposed to having so much money and p*ssing it away. *thud* That was the sound of me jumping off of my soap box.

 

[Forget Favre]

At least he's gonna have a job.
He may not have to sell his ring.
It pays for these guys to finish college before the NFL.
A-Rod didn't do that so hopefully he will be careful with his money.

Making investments is a risk.
But why invest such a huge chunk instead of a bit at a time while having just enough to live on?
Too greedy perhaps?

 

[GreenBayGal]

Not to mention, they are practically kids. (in terms of financial maturity, anyway) I guess if I had that much money and fame at that age, I'd probably spend it on a really cool car, lots of designer clothes and maybe a little enhancement surgery.

 

[Raptorman]

Not to mention, they are practically kids. (in terms of financial maturity, anyway) I guess if I had that much money and fame at that age, I'd probably spend it on a really cool car, lots of designer clothes and maybe a little enhancement surgery.

What, you don't like your ears?

 

[Bogart]

I can't feel bad for him...NFL players make so much more than I'll ever have in a lifetime.

I did like Burnell in Jacksonville regardless how much I still hate that team since it's entrance into the NFL.

 

[7thFloorRA]

When you have made 50 million and you feel the need to invest it all in crazy business ideas to make even more I do not feel sorry for you.

 

[Helmets]

Bad investor, bad quarterback...

 

[robdog]

Crazy. You could just put all $50 mill in the back and just live off interest... forever... At 3% yearly interest, that would be $1.5 mill a year for doing nothing!

 

[Powarun]

While they play they have to live up to each other's standards. Normally its lineman that have problems since they want to keep up with the high paying positions. Keeping up with the Jones is all great till you realize that they either have a lot of money or is broke just like you.

 

[Packers_89]

Crazy. You could just put all $50 mill in the back and just live off interest... forever... At 3% yearly interest, that would be $1.5 mill a year for doing nothing!

I completely agree. I am not sure if he earned 50 mill after tax or not but your point remains the same. As soon as anyone earns 5-10 million, they end up having a bunch of people telling them to invest into something. What is wrong with buying a house or two and living normally for the rest of your days while always having money saved up in case of something? I can understand investing like 40-50% of your millions as an athlete but all of it? And then have 25 million in lawsuits after you?

I don't feel a bit sorry for him.

 

[AmishMafia]

I don't agree with the $50M in the bank. My advice to a player getting a huge check, hire an investment counselor. Distribute your risk; diversify your investments; and put a healthy chunk into tangible assets. Start multiple companies and distance your personal assets from your company. As a tangible asset - I would buy property, both raw land and large scale rental income properties. You should expect to get at least 10% return in the long run.

Vegas has a developer who has gone under about a dozen times. Every time he just starts a new company and a new development. He lives in a huge house in town and is still very wealthy - although all his businesses go bankrupt.

 

[robdog]

I don't agree with the $50M in the bank.

Would you agree with $10M in the bank? That is still $300,000/year doing nothing at 3% interest. (3% being low because if you told a bank here is $10M, you are getting a higher guaranteed interest rate)

 

[Forget Favre]

I don't agree with the $50M in the bank. My advice to a player getting a huge check, hire an investment counselor. Distribute your risk; diversify your investments; and put a healthy chunk into tangible assets. Start multiple companies and distance your personal assets from your company. As a tangible asset - I would buy property, both raw land and large scale rental income properties. You should expect to get at least 10% return in the long run.

Vegas has a developer who has gone under about a dozen times. Every time he just starts a new company and a new development. He lives in a huge house in town and is still very wealthy - although all his businesses go bankrupt.

There is one problem with your scenario that the article brings up: Lawsuits.
As you can see there are 24 mil in lawsuits against Burnell.
I dunno how those who are suing him will expect to get all that back. They won't.

They need to make lifestyle changes to fit they're needs and to make sure they will have plenty for retirement.
Robdog's plan fits in with that.
Simplify.
You in the Amish should know all about that.

 

[mor4les]

Im sorry but Im not going to feel bad about a millionaire who waste 50 millions $

 

[Forget Favre]

Would you agree with $10M in the bank? That is still $300,000/year doing nothing at 3% interest. (3% being low because if you told a bank here is $10M, you are getting a higher guaranteed interest rate)

I dunno how football players get paid.
Do they get the whole chunk at once or is it a reg. paycheck like it is for Joe Sixpack?
And how much is each paycheck?
Your scenario is a good one robdog, if they have that much to put in the bank to begin with.
Say a player gets 5 mil a year. He won't be able to put that all in the bank if it's doled out. He has to support himself, maybe a family and since he's a hot player he's going to live up to that reputation. 3 or 4 fancy sports cars, friends always hanging out, big house, expensive restaurant tabs etc. etc.
What they really need is a reality check that they won't be making that money forever, that they will play 3-6 years, there could be a career ending injury at any time, etc etc etc.
They need advice that no one is giving them or is willing to tell them and they need to listen to that advice.
They also need to stop being arrogant with their money.

 

[AmishMafia]

Would you agree with $10M in the bank? That is still $300,000/year doing nothing at 3% interest. (3% being low because if you told a bank here is $10M, you are getting a higher guaranteed interest rate)

No, I really wouldn't. At safest I would go with muni bonds. Spreading out the risk becomes safe. He invested in start up businesses it sounds like. Great risk great reward. He leveraged his money to the max which I was arguing against. For exampl, his real estate could have been a $50m for new a condo building in downtown nyc. He put $10m down the market died and estimated return plummeted. If instead ga bought a $10m apartment complex he would be gurranteed a return of rent even when the market drops and now its only worth $4m after market drop.