How NFL Players Spend Their Money

• Many college athletes play football hoping to get drafted into the NFL (National Football League) and receive millions of dollars.
• As the majority of athletes who enter the league are in their late teens or early twenties, there is a low chance the majority of their financial decisions will be rational.
• Below are examples of NFL players who either went broke or generated more wealth and the factors that led to these athletes' financial outcomes.

Professional athletes in their late teens or early twenties earn millions of dollars. Unfortunately, as we have seen from some of our former favorite athletes, many spend more than they save and invest. Therefore, analyzing the money habits of these athletes, in particular NFL players, can help you make more informed decisions about your finances. 

Common Spending Habits of NFL Players

Once college athletes get drafted by an NFL team, they receive a contract with a signing bonus, and the higher the draft pick, the better they are compensated. With access to millions of dollars, these athletes possess some of the typical spending habits we traditionally see.

Purchasing Expensive and Luxury Vehicles

Receiving their signing bonus or first check is a rush for many professional athletes, especially when they have never had access to that amount of money beforehand. Soon after getting into the league, one of the most common purchases young players make is high-end, foreign cars to show off they can now afford these luxuries. However, they usually purchase expensive vehicles not just for themselves but also for family members and friends. 

Although these vehicles display or give the perception that a person is wealthy, the issue regarding purchasing luxury cars is how fast they depreciate. According to HotCars.com, luxury cars lose around 40-50% of their original value in the first five years of ownership. Therefore, due to the high depreciation, they are not a financially wise decision for NFL players since the average career length of a player is 3-4 years. 

Buy Houses for their Family Members

Another financial mistake some NFL players make is purchasing many pieces of property for their family members. Although this grand gesture is to thank family members who have helped them get to where they are today, this significant financial decision can have serious consequences. 

Recommended Read: Financial Advice for Athletes

If a player decides to take out a mortgage on a house that exceeds the span of their career, it may result in financial difficulty. This is especially critical for an NFL player since, unlike the NBA and MLB, fully guaranteed contracts in the NFL are not a norm. Therefore, a player cut by the league may default on their mortgage due to the high mortgage payments and the lack of sufficient income.

Effects of Poor Spending Habits

There is nothing wrong with purchasing homes or luxurious cars. However, the major problem arises when these habits are made without moderation. In addition, these major financial decisions could potentially have long-term consequences because an NFL player could get injured at any time, eliminating their chances of playing in the NFL long term.

Recommended Read: Why Athletes Need Financial Literacy

Thus, as these major financial decisions carry high expenses, some players may be unable to afford these costs, leading to them going broke. 

NFL Players Who Went Broke

Although professional athletes are paid a ton of money throughout their NFL career, many players have gone broke due to spending large sums of money, lack of financial planning, or lack of financial literacy.

Lawrence Taylor

Widely regarded as one of the best defensive players of all time, Lawrence Taylor was a force to be reckoned with on the gridiron. However, despite earning millions of dollars throughout his career, poor business investments, legal disputes, and substance abuse led to his financial downfall. 

Terrell Owens

Terrell Owens is another NFL star who lost the majority of his fortune. Although he made $80 million during his career, his risky investments led to his eventual financial downfall, as he is now worth only $500 thousand.

Image Credit: Ken Durden / Shutterstock.com

Dan Marino

The Miami Dolphins' legendary quarterback is regarded as one of the best players in his position. However, despite his on-the-field success, Marino struggled to thrive post-retirement financially. Marino reportedly earned $51 million during his career, but it is estimated he lost around $13.6 million. A significant portion of his fortune was lost after Digital Domain Media Group went bankrupt in 2012, a corporation in which Marino held a $14.5 million investment stake.  

Image Credit: DFree / Shutterstock.com

NFL Players Who Made Smart Financial Decisions 

Kirk Cousins

When making intelligent financial decisions, one person who comes to mind is NFL quarterback Kirk Cousins. He is among the NFL’s highest-paid players, earning nearly $140 million from the Minnesota Vikings. Yet, the quarterback is highly frugal, as he drives his grandparents’ van to work and chooses to conduct his post-season training at his parent's residence. 

These frugal decisions have allowed him to amass a large amount of wealth, which will likely last him throughout his many years of retirement once he hangs up the cleats.

Brandon Copeland

Former Atlanta Falcons linebacker Brandon Copeland has made many diligent financial decisions throughout his eight-year tenure in the NFL. Copeland has mentioned that he has saved nearly 90% of his total NFL earnings, which he has used to give back to his community and start his own consulting firm called Cascade Advisory Group. 

His business aims to educate people, especially students, on financial literacy and how they can become financially independent and free. As financial literacy is not a topic that is widely discussed in schools, Brandon is taking it upon himself to help raise awareness about this key skill. 

Chad “Ochocinco” Johnson

"There's three things in life that's certain: Death, Taxes, and 85 will always be open." The controversial yet entertaining wide receiver earned $48 million during his career. Yet, despite his significant earnings, he claims “he’s been broke since ‘78”, the year he was born. In an interview with Graham Bersinger, he mentioned that he lived a very simple life with minimal expenses. 

Ochocinco wearing jersey number 85 and a white hat. 

Image Credit: Alan Hainkel / Shutterstock.com

As an active player, Ochocinco saved a nice sum of NFL checks and instead used the money earned from endorsement deals and business ventures to make significant purchases and fund his lifestyle. Now, enjoying retirement, the money saved from his NFL contracts is used to keep him comfortable and financially afloat.

Another way Ochocinco has saved money is by purchasing fake jewelry. He rationalizes his reasoning by maintaining that all jewelry, real and fake, shines the same, and there is no way of knowing their authenticity unless a person is close up.

The Money Wrap Up

The examples of past and present athletes above have showcased that spending habits are key to long-term success. When people have poor financial habits, regardless of how much they earn, they will struggle. Thus, it is important to practice financial literacy and build financial habits that will create financial freedom and a pathway to generational wealth, such as investing, saving, setting money aside for college funds, and making an emergency savings fund. 

Main Image Credit: ph.djiz / Shutterstock.com