Saturday, July 03, 2010

Ex-NFL Player Bankruptcy

A 13 year NFL vet who made up to 4.2 mil per year at his peak filed bankruptcy. Assets of $1.42 mil and debts of $69 mil. If he had retired in 2001 and placed $4 mil his money (fraction of what he earned in his career) in a 30 year US treasury bond fund at a 5.5% yield, he would have received $220K annually and seen his investment appreciate. He says his family spends 19K a month, and he lives in a 41 foot long trailer!!! The investment in 30 year US treasuries would have been the 'safest' investment he could have made. Nope, he had to get into real estate. No sympathy. He made in one year what most people would not make in 3 lifetimes. Almost all gone now.

I bring this up because the tension between fans paying high $$ amounts for tickets and athletes being paid millions has risen over years. Labor issues within sports leagues are problematic. It is to the point where the NFL and NBA are both facing lockouts in the next 12 months. Despite the obscene wealth of owners, I think fans will side with owners in these lockouts and not care about the players' grievances. The idea of millions in salary for a kids' game, combined with the problem of 'effort' and 'tanking' in the NBA will not generate sympathy. Add the bankruptcy from these former millionaires to the mix, and you'll have fans saying "screw them" to the athletes. I don't agree with this as the owners are just as scummy or just as good as the players.

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