Financial Illiteracy in Sports

Famers fumble

fortunes Sport’s parasitic relationship with athletes

Katrell Readus readukat000@hsestudents.org

There are a total of 151 Major League sports franchises spread across 52 cities in the United States and Canada. These organizations are full of talented players, some making more than six-figure salaries. However, many of these players will experience their last time on their respective courts or fields only five to six years after their first. Once the bright stadium lights enter their rear-view, many enter a state of financial instability if it had not been entered previously. Professional sports teams and organizations take advantage of their athletes, specifically those coming from underprivileged communities. These organizations use these players for their talents and hunger to grow and succeed while leaving them to their own devices after handing over bundles of money and A list fame with no instruction or guidance. This forces players to trust themselves or others when it comes to managing their newfound income. A 2019 study conducted by the National College Players Association, found that 86% of college athletes live below the federal poverty line. It is from this pool that a large number of players are pulled to the pros. Any young person aligning with or falling into this 86% who are drafted onto a pro team is suddenly dropped into wealth and fame they have no experience with beyond possible daydreams and media portrayals. Regardless of financial upbringing, any young person entering the professional sports world is at an age too young to handle and manage the things it has become synonymous with. On average players are under 20. Therefore, these individuals host a mind in which the prefrontal cortex, the part of the brain that responds to situations with good judgment and an awareness of long-term consequences, is not fully developed and will not be until the age of 25 or so. The average professional athlete is likely to retire before they hit age 30, according to the Royal Bank of Canada (RBC). Hence, this leaves players with, at most, five years of work with the necessary brain

development to make sound choices. Leaving the mistreated players a substantial amount of time to waste away a fortune well earned, but ill-managed in attempts to keep up with the stereotypical appearance of famous and talented athletes including the luxury brands, fast cars, designer drugs, and extravagant parties that mirror that of only Gatsby himself. However, money, fame and a need for appearances are bound to make the real task at hand more difficult. “During my 16 year NBA These pro athletes, many coming from career, I saw newly retired underprivileged teammates lose everything communities, often lack the knowledge to financial schemes and scams, to manage the large dishonest or unqualified advisors and reckless spending only a few sums of money they are earning. According to Sports years after leaving the league.” Illustrated, they focus - Chris Dudley more on getting on the field, scoring points and awing fans than figuring out how to responsibly handle their money. Contrast that with someone who inherits family wealth or builds a business or career over decades. They had the time to learn about managing that money and a network of long-standing, trusted and knowledgeable connections to help them. This begs the question as to whether or not an athlete would rather play their respective sports at the pro level and lower their aspiration and maintain the “security” of not achieving their dream.