Life After an NFL Career - Managing your Money

Ernest Gontarz, Lane Tech College Prep, Fall 2024

When it comes to sports income, NFL players are at the top of the pyramid in terms of salaries. With players pocketing millions of dollars a year, you might think their life is a breeze. That is far from the truth, as the reality of managing and stabilizing that kind of wealth is anything but easy. So, how do these athletes navigate the difficult task of managing the hard earned money they get from football?

The average career in the NFL lasts around 6 years and can total to around 3.2 million dollars (US Bureau of Labor Statistics, 2015). That means retirement can start as soon as their early 30s or even late 20s. Although this early “retirement” is just a career shift in reality, many football players can feel the scrutinizing pain after retiring. High profile expenses are left with no way to pay for them after players retire. This downward spiral is reflected in multiple NFL players. Former NFL Tight End Ian Bunting saw this often, stating how he’s “been to an $80k dinner (that thankfully I didn’t have to pay for) and seen someone lose a $57k bet on a game of cornhole.” This can be attributed to “one of the most financially dangerous habits, ‘keep up with the Joneses’”, which describes the need to outdo the ones around you. This type of behavior raises a big concern for player’s careers.

After all, “15.7% of NFL players file for bankruptcy after year 12 of their retirement” (National Bureau of Economic Research, 2015). So, what could NFL players do to mitigate this financial risk? Firstly, budgeting is a must. For example, financial analyst Lukas Meier, discusses the unique taxes a football player encounters. “Yes, taxes can get quite complicated. Most, if not all, players encounter what’s called the jock tax, where they’re required to pay taxes in each state they play.” Another essential at this level is saving and investing. Since the NFL, for most players, is very volatile and doesn’t offer guaranteed money, players must be ready to save for an emergency. On a broader scale, saving and investing your money is a great way to prepare for an emergency in your future and grow your wealth. 

List Sources:

Median length of a pro football career is 6 years and median earnings are $3.2 million (in year 2000 dollars) Source

15.7% of NFL players file for bankruptcy after year 12 of their retirement. Source