Five tips to help make an NFL contract last for life

We’ve been watching the numbers as we follow the 2015 draft and we’d like to offer sincere congratulations to Damarious Randall and all of the other 31 players chosen in the first round. We’ll be keeping an eye on the next six rounds as well. It’s an exciting time for the NFL and we’re optimistic about the upcoming season, especially the way it appears to be shaping up for our favorite team, Green Bay. Transcending all of the immediate celebrations and lingering contract negotiations, however, looms another number that, despite efforts at the high school, collegiate and professional level, doesn’t seem to be going away. It is still true that 78 percent of NFL players face bankruptcy or serious financial stress within just two years of leaving the game, according to a July 2013 issue of Sports Illustrated. We bring this alarming number up at this happy time because we think that number, 78%, should be the first one NFL players think about as they plan their future. Many factors contribute to this sad continuation of mind boggling waste – pressure from family and friends to share the big payday, the general brevity of an NFL career, bad financial advice, and/or the stubborn refusal to accept sound financial advice. With that, and our 30 years of wealth management experience, we offer the following five tips for making that NFL contract money last your life. 1) Understand the significance of unqualified money. You will have to pay taxes on the money you earn and those income taxes will be significant. You can structure your contract to minimize the impact, but, in the end, you must understand that the number on your contract is not the amount that will be going in your pocket. 2) Don’t make any large purchases during your rookie year. The new house, expensive car, and flashy jewelry feels really good in the moment, but they’re all just… | Read More »