{"id":6740,"date":"2015-12-07T06:31:20","date_gmt":"2015-12-07T14:31:20","guid":{"rendered":"http:\/\/blog.paladinregistry.com\/?p=6740"},"modified":"2015-12-07T06:31:20","modified_gmt":"2015-12-07T14:31:20","slug":"professional-athletes-are-victims-of-sudden-wealth","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/advisors\/professional-athletes-are-victims-of-sudden-wealth\/","title":{"rendered":"Professional Athletes are Victims of Sudden Wealth"},"content":{"rendered":"

20 year-old athletes have a unique set of physical skills that set them apart from everyone else. If they put in the work, they will use these skills to make millions of dollars per year in salary, bonuses, and endorsements. This describes the term ‘sudden wealth’<\/a>.<\/span><\/strong><\/p>\n

That\u2019s the good news. The bad news is their skills will erode over relatively short time periods and they are faced with retirement-type decisions in their late 20\u2019s and 30\u2019s. Or, their careers are over in the blink of an eye if they suffer a catastrophic injury.<\/p>\n

Take note, if you are a Silicon Valley millennial millionaire. Pro-athletes are extreme examples of what can happen if you experience sudden wealth and you are not prepared to take on that responsibility. You will not experience a catastrophic injury, but you can experience a rapid decline in the value of your stock options.<\/p>\n

Risk & Reward<\/strong><\/p>\n

You might think the rewards of big contracts and the risks of career-ending injuries would cause these athletes to make relatively conservative financial decisions.<\/p>\n

Unfortunately, that is rarely the case. Very few athletes come from families and cultures that provide any type of financial knowledge. They are not prepared for the responsibilities that come with sudden wealth.<\/p>\n

Long List of Failures<\/strong><\/p>\n

In his new book, \u201cWinning the Money Game: Lessons Learned From the Financial Fouls of Pro Athletes\u201d<\/em><\/a><\/span><\/strong> former NBA player Adonal Foyle says hundreds of athletes end-up broke by the time they are in their 40\u2019s. The main culprit is a series of bad lifestyle and financial decisions because they are not prepared to be stewards of large sums of money. For example:<\/p>\n