REPORT: ESPN "Broke" - Have Things Changed?

Twelve Years on - Are athlete's managing money better since 'Broke' aired?

The ESPN 30 for 30 documentary "Broke" which hit our screens in 2012, offered a stark glimpse into the reality of professional athletes who lose their fortunes soon after their careers end. It served as a cautionary tale, illustrating how athletes—despite their immense wealth and fame - often find themselves in bad financial situations.

The documentary delved into the stories of athletes who went from riches to rags in a matter of years. It reveals a world where lavish spending, poor financial management, and a lack of guidance contribute to the alarming rate at which athletes go broke and how fame and fortune can be fleeting.

The documentary emphasized that many athletes are ill-prepared to manage vast sums of money and don’t consider long-term financial security, it also highlighted the pressures athletes face from friends, family, and social circles to maintain a certain lifestyle, leading them down a path of financial instability. This sudden influx of wealth can be overwhelming and, without proper financial education, leads to reckless spending and poor financial planning.

Despite its grim narrative, the aim of "Broke" was to raise awareness and encourage change within the sports industry. It suggests that the issue of athletes going broke is not just a personal failing but a systemic problem that requires better education, support, and guidance. The documentary highlights the need for financial advisors who specialize in helping athletes manage their money and stresses the importance of long-term financial planning.

Leaning on my own experience in the sports business and seeking out some updated statistics, I wanted to explore whether the lessons from "Broke" have made a lasting impact on the sports industry and whether athletes are better prepared for life after their careers end.

• Are athletes better equipped to handle their finances today?

• Has there been a noticeable decrease in the number of athletes going broke?

• What initiatives and educational programs are in place to address the issue?

Before we get into it, let’s highlight some high-profile examples.

Notable Examples of Athlete Financial Troubles

Mike Tyson: Former heavyweight boxing champion made over $300 million in his career but filed for bankruptcy in 2003. Legal troubles, lavish spending, and poor financial management contributed to his financial decline. (Yahoo News)

Allen Iverson: Former NBA star, Iverson reportedly earned over $150 million during his career but faced financial difficulties due to extravagant spending, legal issues, and failed business ventures. (Sportskeeda)

Evander Holyfield: Former heavyweight boxing champion earned over $250 million in his career but faced financial troubles due to legal issues and extravagant spending, eventually leading to bankruptcy. (Fox Sports)

These examples demonstrate that even highly successful athletes can experience financial setbacks, highlighting the importance of financial planning and responsible money management. Thankfully, I believe all three recovered to some degree.

However, the list of athletes who are not world-renowned names and find it harder to recover is much, much bigger.

The Harsh Reality: Statistics on Athletes Going Broke

The statistics on athletes going broke remain concerning, even with increased awareness and education efforts. According to a report from Fox Business in 2022, 78% of professional athletes go broke within three years of retirement​ (Fox Business)​. This staggering number is mirrored across different sports, with 60% of NBA players experiencing financial distress within five years of retirement according to​ (ThinkAdvisor)​.

These statistics suggest that, despite their lucrative careers, many athletes still struggle to manage their finances after their playing days are over, despite the awareness of the problem being significantly larger.

Today, we see many top-level athletes succeeding in life after sport with various revenue streams and I think this offers a false sense of progress. While it is progress for the few that qualify as an elite-athlete, we can’t forget that many pro athletes sit below this threshold and aren’t offered the same retirement opportunities as say, David Beckham, Floyd Mayweather, Tom Brady, and the next class of retirees like LeBron James, Serena Williams, Lionel Messi and Cristiano Ronaldo can expect.

It’s the athletes outside of this elite group where the problem lies, the majority, the guys that get forgotten in the mainstream when they retire and are only discussed by the die-hard fans

Factors Contributing to Athletes Going Broke

Several factors contribute to the high rate of athletes going broke: