Everyone’s heard hundreds of stories about professional athletes going broke. They spend as if money grows on trees. And, they trust far too many friends, managers and agents. Many eventually steal or betray them behind their backs and suck them dry.
Sports Illustrated’s Rick Reilly wrote this interesting, tongue-in-cheek post highlighting many more sad realities on this topic. One startling and sobering statistic got my attention, though. Over 60 percent of NBA players go broke within five years of retirement. Wow.
The first question that runs through my mind is… why won’t they ever learn? The stories are always in the news. So, how many rags to riches to rags examples do these stars need to see or read about before they actually change their behavior? Then it occurred to me that one’s behavior can only change if that person understands he is doing something wrong/harmful and then is taught how to do it better (or not at all). Understanding that point, I wonder if the NBA needs to step up here and take more of a leadership role with its players. While the league has no legal responsibility to make sure its employees don’t throw away their lives, I think an ethical example still needs to be set.
I did a little research on the NBA. This league does some great work helping kids become more educated about staying in school and away from drugs. And, it also plays a pivotal role helping players with various maturity and emotional issues they inevitably encounter as they jump from high school or college into a celebrity life in the NBA. But, I’ve yet to find any literature, information or media coverage about how the league helps on the financial literacy front. That’s really a shame.
The image of this league has consistently fallen over the last decade or so for a variety of reasons. Attendance at games and viewership has also greatly waned as the fan base demographics are now limited to more inner city, lower income consumers (versus a healthy mix of middle class and more affluent fans as well.) It’s clear that this fan base still admires these talented basketball players and views them as bona fide heroes because of what they can do on the basketball court and the image they personify. Here’s food for thought: If the NBA actually took a position by teaching its players how to save the millions of $$$ they earn, then just maybe this new found personal financial responsibility would be emulated by the fans and spill over to a part of our society that really needs this help the most.
The best way for the NBA to quick-start such a program would be an alliance with John Hope Bryant of Operation HOPE. He's been a strong advocate of financial literacy for nearly 20 years.
Posted by: Peter Engel | February 03, 2011 at 10:59 AM
Thanks for posting, peter.
Posted by: Ed Moed | February 06, 2011 at 08:50 AM
Ed,
I think you hit the nail on the head when you admitted you "did a little research on the NBA." The NBA Players Association has had programming in place since 1993, which includes a comprehensive financial education program- http://www.nbpa.org/player-programs-department
Whether the players listen to any of the information provided to them in these mandatory meetings is up for debate. However, for you to suggest that the it exist, just because you couldn't Google any evidence to support it, shows NBA players do not have the market cornered on ignorance.
Posted by: Jim McIlvaine | March 03, 2011 at 09:54 AM
Jim,
Thanks for your comments. I had no idea about this program. But, neither did two friends who previously worked at the NBA. My research was not limited to Google. Maybe the NBA should do a better job of promoting this program…like it does the flash and sizzle of its players. Then, bloggers like me would more easily understand that the league is trying...
Posted by: Ed Moed | March 03, 2011 at 10:18 AM
Ed, those programs are run by the NBPA, not the NBA. Maybe you should get more informed friends on the NBA side of things. It is common knowledge within the league that most (if not all) teams have Mentors and Player Development employees who also offer similar services to NBA players.
I think the NBA and NBPA are far less concerned with how well-publicized these programs are to the general public, versus how effective they are in assisting NBA players.
These programs are a tough sell within the league and outside of it. Most NBA players are convinced "it" won't happen to them (whatever "it" is) and most fans would rather read about whatever dirt Deadspin can dig up and post for all the world to see.
Posted by: Jim McIlvaine | March 03, 2011 at 11:14 AM
Jim,
The NBA is taking heat because it looks like their players are inadequately educated on how to save the millions of $$$ they make. Don’t you think it would make sense for them to publicly discuss the fact that this training does indeed take place? If nothing else, it would showcase this brand (and entity) as one that is trying to help its players. To me, that’s only a positive.
If as you say they don’t care to discuss this publicly….then I think the league is being foolish at this point. Regardless of what you say, the NBA clearly cares about its brand reputation. And, this issue impacts that.
Ed
Posted by: Ed Moed | March 03, 2011 at 11:59 AM