[quote="mjg, post:10, topic:1196"]But, I've read / seen / heard that many big lottery winners end up the same way. Must have something to do with not knowing how to handle so much money in a way that guarantees it never runs out.[/quote]
It has to do with the phenomenon that Emile Durkheim coined "Anomie." Anomie is a state of normlessness/rulessness that can be created by a sudden dramatic change in someone's lifestyle. That is the case with lotto winners. The rules that they once lived their life by (financial rules, in this example) dissolve and they lose track of what to do. This anomie leads to vast increases in spending by these winners and, eventually, bankruptcy in many cases.
I have heard this also.................BUT I wonder if this is just "psyco" B.S. talk for just plain old "foolishness!" I think there are many big "fast buck" athletes who DON'T blow their money. But, years later you don't see their names in headlines for bankrupcy.
Of course there are many smart ones. But Walker was actually very successful. $108 mill for a career maybe not among leaders (Garnett is at $251 million and counting), but it’s still amazing. I saw a show on the NFL that within 4 years of leaving the NFL over 70% of players are bankrupt or near bankrupt. That’s a different issue, I think. Many of these guys just play a few years and aren’t prepared for civilian life.
70%?! I can’t believe that. Do you have a link on that stat?
Actually, the number is 78%. Pretty bad. And it’s within two years after leaving, not four. Before looking it up, I was being conservative.
It’s not just athletes. Did you see the story about Kevin Costner and his “project” to deal with oil spills which he offered to BP? He, working with his brother, spent $26 million of his own money developing a product to separate oil and water in the case of spills. Been funding it for 10-15 years. I don’t think BP took him up on it. Lotta dough down the drain. Maybe now he’ll quit funding it. If they can’t use it now, when will they use it?
This is the real story, it’s the link in above link. SI story. Amazing.
Things like this don’t help.
• Numerous retired MLB players have been similarly ruined, and the current economic crisis is taking a toll on some active players as well. Last month 10 current and former big leaguers—including outfielders Johnny Damon of the Yankees and Jacoby Ellsbury of the Red Sox and pitchers Mike Pelfrey of the Mets and Scott Eyre of the Phillies—discovered that at least some of their money is tied up in the $8 billion fraud allegedly perpetrated by Texas financier Robert Allen Stanford. Pelfrey told the New York Post that 99% of his fortune is frozen; Eyre admitted last month that he was broke, and the team quickly agreed to advance a portion of his $2 million salary.
I think this could be the epitome of “putting your foot down.” Wow.
In 1994, when NBA center Dikembe Mutombo was engaged to Michelle Roberts, a med student, Roberts refused to sign a premarital contract the day before the wedding. Five hundred guests—including a large party from Mutombo’s native Democratic Republic of Congo—had begun flying in to Washington. “[Roberts] never signed,” Falk says, “and Mutombo never married the girl.” Calling off the nuptials reportedly cost him $250,000.
Now here’s one which could have been avoided by Torey Hunter. Sound like something Ralph Kramden would go for.
About five years ago, Hunter says, he invested almost $70,000 in an invention: an inflatable raft that would sit under furniture. The pitch was that when high-rainfall areas were flooded, consumers could pump up the device, allowing a sofa to float and remain dry. “The guy I invested with came back and wanted me to put in more, about $500,000,” Hunter says. “Then I met [Butowsky], who just said, Hell no! I wound up never seeing that guy—or any of my money—again.”