Chapter 3: How to Lose $100 million
Want to learn how to lose $100 million? Look no further!
Athletes and Financial Mismanagement
“Once I made the roster, my first big purchase was a 1992 white Corvette with red interior for $38,000…[Later] I bought a Mercedes and a Hummer. Players really go overboard on automobiles.”
— George Koonce, nine-year NFL veteran
Author of Is There Life After Football:
Surviving the NFL
There is no shortage of professional athletes who have mismanaged their money. It has happened in every major sport spanning several generations of athletes. During the 1940’s former World Champion boxer Joe Louis, after having made $4.8 million, died owing money to the US government. Boxer Sugar Ray Robinson lost the $4 million he made during his boxing career in the 1950’s. NFL star Bernie Kosar squandered a $15 million fortune. Former NBA player Charles Barkley once claimed he lost over $10 million gambling. Former NFL great Warren Sapp made $82 million during his NFL career, yet by the end had only $826.04 in his bank account and had to file for bankruptcy.
Athletes run into financial trouble for several reasons including lack of self-control, peer and family pressure, the false belief that their income will continue for the rest of their lives, and a lack of basic financial and investment knowledge. However, financial mismanagement is not relegated to athletes. In fact, lottery winners declare bankruptcy at twice the rate of the general population and encounter similar challenges that newly wealthy athletes face. (See Chapter 5: The Dark Side of Wealth).
Your Personal Guide To Losing $100 Million And Other Lesser Amounts!
“Nothing is worse than being famous and broke.”
– Kashif
Grammy-nominated recording artist, producer,
writer
Before I give a personal guide on how to lose $100 million (and other lesser amounts), I’d like to provide actual examples of the spending habits of a few professional athletes:
- Former NFL quarterback Vince Young regularly spent $5,000 a week at the Cheese Cake Factory. He also once bought 120 tickets on a Southwest flight so he could fly alone. The 2 hour flight cost $22,000.
- Boxer Mike Tyson bought 3 white Bengal Tigers. He didn’t consider the cost to maintain and feed the tiger which could run into the tens of thousands per year.
- Golfer John Daley once spent $1.6 million dollars playing slot machines in Las Vegas.
- Boxer Evander Holyfield, who fathered 11 children with 8 different women, bought a 45,000 square foot,109 room mansion. The property came with a monthly electric bill of $17,000 and another $1million a year in property maintenance.
- Former NFL quarterback Bernie Kosar paid 60 different cell phone bills for various family, friends, and associates.
- Former NBA star Antoine Walker financially supported an entourage of at least 70 people.
So without further ado, I like to provide you with proven methods for losing $100 million (and other lesser amounts)!
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