Another story about an NBA star who lost everything

[cardfaninmemphis]

Vin Baker, who earned $97 million, not including endorsements, over his 14 year NBA career is now a Barista at Starbucks.

http://ftw.usatoday.com/2015/07/four-time-nba-all-star-vin-baker-is-working-at-starbucks

 

[Ipartiedwithhopgood]

Don't have time to read link just yet.

I know Vin Baker was an alcoholic.

Half of them go broke, so looks like he fell on the wrong side.

It's why they need to either go back to school while they have $ left and/or take advantage of the educational opportunities while they are in college.

I'd like to know what % of early entry NBA enrollees go back and finish college. Hopefully it's large %, but I have doubts.

 

[Rhavicc]

Don't have time to read link just yet.

I know Vin Baker was an alcoholic.

Half of them go broke, so looks like he fell on the wrong side.

It's why they need to either go back to school while they have $ left and/or take advantage of the educational opportunities while they are in college.

I'd like to know what % of early entry NBA enrollees go back and finish college. Hopefully it's large %, but I have doubts.

Fwiw, I don't know how many other schools do it, or if all other school do it (which I hope so, anyway), but when players leave UK for the NBA, they can come back at any point in their lives on a full scholarship and finish getting their education.
That said, if you make that much money and lose it all, it's self-inflicted. There's a strong possibility that those very people that lose millions that they made in professional sports, could go through college, earn a degree, start a career, and go broke.
There is no such thing as a "sure thing" in this world. There are a number of college graduates that declare bankruptcy.

Put yourself in their position. Statistically, 35-40% of college graduates go broke, making an average of $46,000 per year starting out, as opposed to 55-60% of NBA players (it's worse in the NFL) going broke, making an average of $4.9 million.

I think professional athletes have a long way to go when it comes to deciding what to do with their money, but as I said, it's self-inflicted for a professional athlete to go broke. Rob Gronkowski has never spent a dime of his contract money in the NFL (his own words), so that shows that it's very possible, and very simple to do. Players just need to learn how to manage the money.

While these percentages hold true right now, it's much easier for NBA players to reduce their numbers of people going broke, than it would be for college graduates to reduce their numbers. There are far less people in the NBA than there are college grads, and the pro athletes have much more resources to work with.

It's not just a problem with professional athletes though, it's a global problem. There are a lot of people that have a difficult time hanging onto money.

 

[Steelers2012]

Put yourself in their position. Statistically, 35-40% of college graduates go broke, making an average of $46,000 per year starting out, as opposed to 55-60% of NBA players (it's worse in the NFL) going broke, making an average of $4.9 million.

35-40% of all college graduates go broke? Do you have a link to the source of that stat? I'm not questioning your knowledge, that just strikes me as really high, since I know a lot of college grads, and none of them have declared bankruptcy as far as I know. TIA for the info.

 

[Ipartiedwithhopgood]

35-40% of all college graduates go broke? Do you have a link to the source of that stat? I'm not questioning your knowledge, that just strikes me as really high, since I know a lot of college grads, and none of them have declared bankruptcy as far as I know. TIA for the info.

Sry Steelers thought you were responding to my post... Didn't see the other one. Hope you've been well!

 

[Ipartiedwithhopgood]

Steelers it's an interesting topic for sure. I've got to run but did a quick search and found something from the Wash Post a couple years ago, and the bankruptcy rate of college grads was in the low teens, but rising.

http://www.washingtonpost.com/busin...ptcy-filings/2011/09/12/gIQAmemtNK_story.html

 

[Steelers2012]

Steelers it's an interesting topic for sure. I've got to run but did a quick search and found something from the Wash Post a couple years ago, and the bankruptcy rate of college grads was in the low teens, but rising.

http://www.washingtonpost.com/busin...ptcy-filings/2011/09/12/gIQAmemtNK_story.html

Thanks. It's nothing I had ever really thought about, but 35-40% sounded pretty high. I do know student loan debt is a serious issue for graduates.

 

[Rhavicc]

Thanks. It's nothing I had ever really thought about, but 35-40% sounded pretty high. I do know student loan debt is a serious issue for graduates.

They can be killer. It's even worse that bankruptcy doesn't clear your student loans most of the time (it's possible, but very rare, pretty complex. There were about 13% declared bankruptcies among college graduates back in 2011 or so, but over the next couple of years, that number spiked by 20% (not up to 20%, by 20%).
Like I said, it's not an issue that's isolated to professional athletes. It happens everywhere.

 

[cardfaninmemphis]

They can be killer. It's even worse that bankruptcy doesn't clear your student loans most of the time (it's possible, but very rare, pretty complex. There were about 13% declared bankruptcies among college graduates back in 2011 or so, but over the next couple of years, that number spiked by 20% (not up to 20%, by 20%).
Like I said, it's not an issue that's isolated to professional athletes. It happens everywhere.

The issue that is largely related to professional athletes is earning millions of dollars and going broke.

The idea that when they make those millions in pro-sports that they are set for life deserves to be challenged. As you wrote in a previous thread, not being able to hang on to money is the issue. If you earn millions as a pro athlete, you should have some kind of a cushion for making a money management mistake, as opposed to someone who earns $50K/ year and has little room for error. People can learn how to hang on to money, and there are lots of good programs and courses to teach people who to do just that.

Also, there is a difference between declaring bankruptcy and going broke; just ask Donald Trump.

Nice back track, BTW, from 35-40% to 13%. 13% compared to 50-60% is a huge difference.

 

[CardFan1130]

Baker besides alcohol issues also had some severe mental issues like depression or bipolar.

 

[cabo]

Athletes that have no education on money go broke because they cant say No. A friend of mine played at UL and the NFL long enough to draw a pension. He was not a star but managed his money. He is currently working in the school system. His quote was, "guys cant say no. You have to tell people no. I have people call me all the time wanting money thinking Im rich cause I played in the NFL. I just say no."

 

[IL Wildcat]

Well, at least he seems to be thinking a little more clearly now than he was during his time in the league. I can't imagine having nearly $7 million a year to spend for 14 years, but I'd be willing to give it a shot. I just mentioned this to a friend. He said, "Even if you could put back $2 mil of that at 5%, that's $100,000 a year." That's sounds better than a Starbucks salary, eh?

 

[Cardiotonic]

Baker besides alcohol issues also had some severe mental issues like depression or bipolar.

Very true.