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

One of the biggest concerns to date is the lending practices of NFL players in need, or with a strong desire, to take out loans.  These loans typically have terrible interest rates attached to them, which players will be complaining about for years to come.  Some interest rates exceed 20% of the loan amount. Some NFL players are turning to high-risk loans to make ends meet.

Another reason players are borrowing now — before even missing a major payday — is that they may be afraid credit will dry up if the lockout continues into the NFL season, said Darren Heitner, an agent and the author of sportsagentblog.com. After all, if interest rates are this high now, what will they be like when players start to miss game checks and lenders know they are even less likely to be repaid?



It is said to see this happen to professional athletes especially the amount of money they first start to  make when they get in the league. Not having a good sense on how to budget their finances and being able to save for a rainy day is putting a strain on many football players and their families.  Hopefully both sides can come to an agreement and the athletes can just focus on what they do best.  Play the game...


Resources
www.prioritysports.com
www.suresportslending.com
www.agrsportsfunding.com
www.sportsagentblog.com

With the NBA Playoffs in full swing the playoffs have been nothing but entertaining for fans.  The Miami Heat eliminated the Boston Celtics in the Eastern Conference Finals 4 - 1 in the series. The Chicago Bulls on Thursday night finished off the Atlanta Hawks 4 - 2 in the series to set up an Eastern Conference Finals between the 2 teams. During the regular season the Bulls beat Miami sweeping them 3 - 0.  But we all know in the playoffs the landscaping of the game changes dramatically. Twelve of 14 ESPN Experts picked Miami to win the series.  Miami having 2 of the 5 best players in Dwayne Wade and Lebron James who can argue that pick.  Both teams have very contrasting styles which should make it an interesting series.