Players in the National Football League make a lot of money. So much, in fact, that players’ salaries are often as well publicized as their game statistics.
Some highly-talented stars earn tens of millions per year, while less sought-after players might make a few hundred thousand. According to Career Trend, the average NFL salary is $2.1 million per year.1 That figure equates to more than 63 times the U.S. median personal income.2
So, in theory, one year of playing pro football should earn you roughly the same amount of money as working 62 years at an average paying job.
Of course, this is not a statistically realistic comparison. (Hopefully, you get a few raises in your six-decade career.) But it does illustrate why people believe that if you can make it into the NFL, you’ll be financially set for life.
Unfortunately, just the opposite is true.
Sports Illustrated has estimated that 78% of NFL players end up broke or under financial distress when they retire.3 For example, Terrell Owens, who made $80 million over his 15-year career as a receiver, has little to show for it today.
The reasons for this aren’t terribly mysterious. Expenses like taxes, management fees, and agent commissions are usually higher than expected. When friends, family, and distant relations learn how much you make, many will ask for money. Then there’s the mentality (also found among lottery winners) that your multi-million dollar payout is more than you can possibly spend, so you go shopping for cars, jewelry, and houses. Finally, pro athletes tend to make bad investing decisions, which is what happened to Owens.
Several years ago NFL linebacker Brandon Copeland signed a $1.2 million contract his first year out of college. However, following a severe injury he was cut by the team. Because of how his deal was structured, he estimates that he actually received only $25,000 to $35,000.4
Copeland has since made a comeback, playing most recently for the NY Jets. But knowing the fleeting nature of an NFL salary, he has committed to living on about 10% of his income, while saving and investing the rest.
Copeland advises everyone (not just pro athletes) to be aggressive about saving for retirement. But to do this, he says, you have to live on less than you make. It turns out that managing and saving is as important as “earning,” if not more so.
“The biggest lesson I’ve learned,” says Copeland, “is basically don’t try to keep up with the Joneses.” Don’t chase the things that won’t be of lasting value to you.
You don’t need to bring in an NFL level salary to successfully build a nest egg for retirement. Discipline and consistency are far more important, along with the help of a trusted advisor.
Citations:
1 – https://careertrend.com/facts-4927175-money-does-nfl-player-year.html
2 – https://fred.stlouisfed.org/series/MEPAINUSA646N
3 – https://www.businessinsider.com/ap-liz-weston-why-nfl-players-go-broke-and-what-you-can-learn-2017-10
4 – https://www.cnbc.com/2019/04/05/nfl-linebacker-brandon-copeland-saves-90percent-of-his-pay-heres-how.html
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