So you finally made it and signed with a professional team.  They liked your potential, talent, and the organization feels like you can help there team win games.  Now is the hard part, learning how to budget your new found wealth!  Seems like the money is a lot and will not run out.  But eventually the big checks will stop coming in, so knowing how to budget long term will put you in a better position down the road.  A high percentage of professional athletes file for bankruptcy only after a few years of finishing their professional career.  According to Sports Illustrated 78% of NFL players go bankrupt or are under financial stress within 2 years because of joblessness or divorce.  By following a couple guidelines and careful planning that will not be the case.

1st Contract

When you and your agent worked out a deal with your new team, you want to consult a CPA as soon as possible.  They can go over various project managing that you will have to consider with your money.  Such as tax withholding on game checks and player bonuses.  Deductible expenses like moving expenses, training fees, and agent fees.  Most importantly tax planning for any endorsements.

New City


Upon signing with a new team you will probably will be living in a city you are unfamilar with.  Even though you may consider buying a house at first.  The first year I would recommend renting a townhome with a fellow teammate preferable a rookie as well.  You may never know what may happen early in the season also you want to learn the area and see if this is somewhere you want to purchase a home.  That way you keep your financial obligations low and can put the money away for a rainy day.

Budget and Financial Planning


Whether you are a first round pick or undrafted player that barely made the team, whatever money you get make sure to create a budget.  This will help you with your monthly expenses as well in the off-season.  You have a limited amount of time usually players last in the nfl and nba an average of 4 - 6 years to make a significant income. By planning financially down the road to set yourself up for retirement can determine what kind of lifestyle you will have after you retire from professional sports.

By having a clear understanding of your finances it can help down the road if you would like to explore business ventures, investing, or building a portfolio.  These are just some of the key factors an athlete must be aware of when starting his or her career.  "The art is not in making money, but in keeping it" - Anonymous

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