Why Pro Athletes Are Saying Their Big Contracts Weren’t So Big

Recent social media posts from professional athletes reveal their dismay over the diminished impact of multimillion-dollar contracts. The root of this issue lies in taxes and other expenses that significantly shrink the amount athletes actually receive. Former NBA star JJ Redick's 2024 clips reemphasized the truth of these financial burdens, stating that people should listen to the facts rather than dismissing them.

Chris Bosh echoed this sentiment, noting the public's reluctance to acknowledge the reality faced by athletes. Financial advisors working with athletes claim that the general public vastly overestimates the wealth of professional sports figures, taking into account taxes, career longevity, and financial mismanagement. Marc Specht of Perigon Wealth Management clarified that the common belief that athletes are financially secure is far from accurate.

Some high-profile cases, such as Tim Duncan and Toni Kukoč, have been associated with financial advisors mishandling or stealing funds. Hall of Fame wide receiver Terrell Owens provided a stark example, having nearly all of his $80 million earnings evaporate by 2012 due to taxes, agent fees, and poor financial management. Owens blamed his former agent, Drew Rosenhaus, and financial advisors for his financial downfall.

As a result, he sued Rosenhaus, but the case was later sent to arbitration and dropped. Owens has since rebuilt his finances through various investments but emphasizes the importance of personal involvement in financial matters. Experts advise athletes, as well as anyone else, to verify the credibility of financial advisors through platforms like FINRA brokercheck.

Financial advisor Ryan Rosegarten acknowledged the unique financial circumstances of athletes but stressed that decision-making skills are crucial for anyone managing significant wealth. While pro athletes might be the right people to highlight this issue, they are often not the best messengers, as noted by DePaul University's Kelly Richmond Pope.