The Athlete Vulnerability Issue

The financial vulnerability of athletes is a real problem and financial failure rates are high among athletes worldwide.

Factors Contributing to
the Financial Vulnerability of Athletes

We consider athletes to be amongst the most financially vulnerable persons of our times and the statistics globally support this claim. There are various factors contributing to the financial vulnerability of athletes:

Income Life Span

Athletes earn substantial amounts of income but within the limits of a short time span, usually 10 to 15 years. The average annual salary of an athlete can be anywhere from 50 to 100 times more than the average household income both in the US and Europe. The end of the athlete’s field play usually marks the end of the substantial earnings, both from field play and from other sources, such as image rights exploitation, endorsements, etc.

Young age

Athletes earn their money at a very young age. Athletes’ earnings peak at the age of 25 to 30 and then take a huge plunge by the age of 35, as opposed to the rest of the normal work force who reach peak earnings between ages 39 to 55. A lot of athletes leave their home countries at a very young age and they tend to overspend to compensate for things that are missing in their lives such as family and friends.

Income Volatility

Athletes’ earnings are extremely volatile. Most of the times their salaries are not fully guaranteed and, in addition, poor performance, injury, on and off field behavior can adversely affect their earning capacity.

Through the SFLA courses, we address all of the above issues and help athletes deal with financial vulnerability by enabling them to make wise decisions concerning money.

The Statistics

How athletes do financially after retirement has been a matter of extensive research. The statistics are compelling and the magnitude of the problem is obvious.

per week

Research by XPro, a charity for ex-players, suggests that three out of five UK Premier League players, who earn an average of STG 30,000 per week (approximately US$ 36,000), declare bankruptcy within five years from retirement.


In Australia, the Professional Footballers Association in its Retired and Transitioned Players Report of 2015, finds that 12% of retired players are unsatisfied with their current financial situation



18,8% report that football had a negative financial impact on them

1 out of 3

report that they had made decisions that negatively affected their financial position.

Despite the high professional athlete salaries, within 5 years past their retirement, 60% of former NBA players have gone bankrupt or are under financial distress.



Approximately 25% of NFL players report financial difficulties in the first year after retirement and within two years removed from their last game


78% of all NFL players are divorced, bankrupt, or remain unemployed.


Reasons behind
Athletes’ financial failure

The statistics show that the financial vulnerability of athletes is a global problem.  We have identified a number of reasons behind the financial failure of most athletes.

Lack of Financial Education

Career athletes often do not have the same level of financial literacy as people who take a more conventional career path.  The unique financial challenges that come from life as a professional athlete, combined with the lack of financial education, usually lead to poor financial decisions which usually have an adverse lifelong impact.


Luxurious Lifestyle

The high income and celebrity recognition that athletes enjoy usually at an early age, draws them to a lifestyle of the rich and famous, living for the moment, and revelling in their fame and fortune.

Divorce & Child Support

Divorce may have a disastrous effect on the financial well-being of professional athletes, as most of them don’t have prenuptial agreements in place.  In addition, a number of athletes have children from multiple wives and they are obliged to pay several monthly alimony and child support payments which are substantial.


Bad Investments & Misplaced Trust

Advisor improprieties and misappropriations of funds have contributed to the financial problems of professional athletes.

Sudden Wealth

The receipt of sudden wealth is an intense emotional event, and it precipitates new financial challenges and decisions.  Athletes must deal with their emotions and confront their fears that may arise from their newfound wealth.


External Pressures

Athletes have a lot of external pressures from their close circle and people who have helped them succeed, and who may seek financial rewards and returns from the athlete as recognition of their contribution to the athlete’s success.