What Percentage of NFL Players Go Broke?

The financial journeys of professional athletes, particularly those in the National Football League (NFL), often capture public interest. Many are curious about the financial stability of these athletes, who earn substantial incomes. There is a common perception that a notable number of professional football players encounter financial difficulties after their careers conclude. This article examines the statistics surrounding player financial outcomes, the factors contributing to financial challenges, and the distinct financial landscape players navigate once their professional playing days are over.

Understanding the Statistics of Player Financial Outcomes

Public discussions about NFL players’ financial well-being often cite varying statistics regarding financial distress or bankruptcy. A frequently referenced 2009 Sports Illustrated article indicated that approximately 78% of NFL players experience financial stress or bankruptcy within two years of retirement. This figure suggests many former players face hardship soon after leaving the league.

However, other comprehensive studies focusing on bankruptcy filings present a more nuanced picture. A working paper from the National Bureau of Economic Research (NBER), analyzing data from players drafted between 1996 and 2003, found that 1.9% of NFL players filed for bankruptcy within two years of retirement. This rate increased to 15.7% within twelve years post-retirement.

The difference in these figures stems from how “going broke” or “financial hardship” is defined. Bankruptcy is a legal declaration of inability to repay debts, while “financial stress” or “hardship” can encompass broader challenges like asset loss or inability to maintain a pre-retirement lifestyle. The NBER study suggests that while a substantial percentage of players file for bankruptcy over time, the immediate post-retirement bankruptcy rate might be lower than widely circulated figures imply. Still, a 15.7% bankruptcy rate within twelve years is significant, given their high career earnings.

Circumstances Contributing to Financial Difficulties

Several factors contribute to NFL players’ financial challenges, often stemming from their profession’s unique nature. One significant aspect is the relatively short duration of an NFL career, averaging about 3.3 years. This limited earning window means players must accumulate enough wealth to sustain them for many decades after their playing days conclude.

Players frequently experience a sudden and substantial increase in income upon entering the league. This rapid influx of wealth, often occurring at a young age, can be overwhelming for individuals who may not have prior experience managing large sums of money. This unpreparedness can lead to spending patterns that quickly deplete assets, such as purchasing luxury items like expensive cars, large homes, and jewelry, or maintaining a significant entourage.

Many players begin their NFL careers with limited formal financial education or experience in long-term wealth management. This lack of financial literacy can make them vulnerable to poor investment decisions, including engaging in risky ventures or falling victim to scams perpetrated by unscrupulous advisors. Additionally, players often face considerable external financial pressures, encountering significant requests for financial support from family members, friends, or associates, which can further strain their resources.

The Financial Landscape After a Playing Career

The conclusion of an NFL playing career brings distinct financial realities. A primary challenge is the abrupt cessation of a high professional salary, leading to a significant drop in income. Players must transition from earning millions annually to potentially having no athletic income, necessitating a fundamental shift in their financial approach.

After their playing careers, former NFL players often transition into new career paths. This involves seeking and training for alternative professions, which typically offer income levels significantly lower than their athletic earnings. Skills honed on the football field do not always translate directly to high-paying opportunities, requiring adjustment and potentially further education or training.

Long-term health considerations also present a substantial financial burden for many retired players. The physical demands of professional football often result in injuries that lead to significant medical expenses in retirement. Common issues include joint replacement surgeries, a higher incidence of arthritis, and potential neurological conditions. While the NFL and its players’ association offer some benefits, such as the Bert Bell/Pete Rozelle NFL Player Retirement Plan, the 88 Plan for neurological conditions, or a joint replacement program, coverage may not always fully alleviate these costs. For instance, NFL-provided health insurance typically lasts for a limited period, often five years for vested players, meaning many serious conditions manifest after coverage expires.

Building sufficient long-term retirement savings and investments also poses unique difficulties for former players. Given the compressed earning window of an NFL career, players have limited time to accumulate wealth that must last for decades of post-retirement life. The potential for early career income peaks followed by sharp declines makes traditional retirement planning models less applicable, requiring a focused and disciplined approach to saving and investing from the outset of their professional careers. Tax obligations, including “jock taxes” incurred from playing in multiple states, also add complexity to their financial management throughout their careers.