By Vasilia Polycarpou, The Sports Financial Literacy Academy
With great success comes great financial opportunities, but also additional pressure and responsibilities. Professional athletes may suddenly find themselves earning excessively large sums of money, which can be hard to manage. Sudden wealth can cloud financial decision-making and judgment, especially for athletes from humble backgrounds who want to treat themselves and their loved ones. This newfound wealth can create a better life or lead to financial distress if mismanaged.
Who to financially support
Athletes often feel the need to financially support those who contributed to their success. Their family, friends, and loved ones likely made sacrifices throughout their journey. However, boundaries must be set to avoid misunderstandings and overspending. Athletes can be generous but should say no if things get out of hand, remembering that athletic careers are short-lived and earnings are volatile. Professional support, such as an advisor, life coach, or therapist, can help athletes manage these pressures rationally and diplomatically.
Sudden Wealth Syndrome
Sudden wealth syndrome can also cause athletes to fear exploitation by others seeking to take advantage of their money. This fear can lead to suspicion and loss of trust, causing anxiety, stress, and psychological damage. Former NFL player Phillip Buchanon’s experience serves as a cautionary tale. After he was drafted, his mother demanded a million dollars for raising him, straining their relationship.
The example of NFL running back Trent Richardson is also noteworthy. Richardson lost millions due to family and friends taking advantage of his wealth. In 2015, reports stated that his trusted circle spent nearly $1.6 million of his money within ten months. This left him feeling betrayed, losing trust in those close to him, and ultimately cutting ties with most of his relatives.
Athletes must be cautious about how money affects their intimate connections and relationships. Money often tests the depth of relationships. Maintaining a tight inner circle with people who value them beyond their athletic and financial success is essential. Setting boundaries and saying no, even if it means not pleasing others, helps protect their financial interests and personal well-being.
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