Game Over: Why professional athletes like Socceroo Lucas Neill lose their millions through bad financial advice

Posted by Josh Cratchley

If you’re a soccer fan, you may have been shocked to hear that former Socceroos captain Lucas Neill has declared bankruptcy in the UK following a career where he earned more than an estimated $40m.

If only he’d followed the first four rules to becoming a successful self-directed adviser, which we wrote about in our Financial Advice is Overrated ebook:

  1. Have a healthy dose of scepticism
  2. Be critical of whom you listen to
  3. If you’re excited about your investments, then you’re doing it all wrong
  4. Leave your emotions at the door

If he’d taken these rules to heart, would he still be declaring bankruptcy? Or would he realise he didn’t need to earn anything from his assets (having already earned several lifetimes’ worth of income) and still have the best part of $40m sitting in a bank account?

A number of our clients are professional sportspeople, and as I often remind them they face a problem few of us will ever have to worry about.

Most people’s incomes steadily increase as they get older, the result of climbing the career ladder or making their business more successful. But professional sportspeople will probably never earn as much as they did in their 20s and early 30s—a frightening reality for anyone who wastes their ‘once in a lifetime’ opportunity.

Which makes the situation Neill has put himself and his family in seem even more ridiculous. As reported in the Sydney Morning Herald, “Neill's off-field vice appears [to be] high-risk investments. To the outsider, it's an odd trail: film syndicates, property schemes, horse racing”.

A professional sportsperson’s career can be over in the blink of an eye. One awkward tackle, concussion or serious muscle or joint tear could have them facing permanent retirement. So why isn’t that fact being drilled into them from the moment they start playing? Why isn’t every professional club explaining that their future as a player is always at risk, and that they should never risk (or let anyone else risk) their future away from the game?

This love of ‘rolling the dice’ isn’t exclusive to professional sportspeople. Business people and high-flying executives do the same thing, risking their vast income on silly, ill-conceived investment decisions despite the constant threat of bankruptcy or being sacked/made redundant.

Risk is a relative thing. It’s a tool for bridging the gap between where you are now and where you want to be at some point in the future. The wider the gap, the more risk you should be willing to take (as long as you can sleep at night). So why is a professional soccer player earning $40m in his career investing in films and horses?

Let’s assume he legitimately spent half of that money over the years. That would still leave him with $20m in the bank which, even at a conservative 5% interest rate, could have earned him a million dollars a year in perpetuity.

So again, what was the point? Was $1m per year not enough, or was he caught up in the thrill of risking it all?

Neill didn’t lose his $40m through a series of unfortunate events. He clearly lost touch with financial reality, most likely from earning tens of thousands of pounds per week from an age where most of us are working part-time jobs and living at home.

Hopefully he can pick himself up, dust himself off, and get back in the game—just like he did time and time again for the Socceroos.

back to blog

Comment

Of course, should you go with a no cost site, you can have greater
than social contact based upon your mood and the friends you're
making on each site. Now, nothing is to worry about because internet
world and online dating services have eradicated
this trouble. Once they are successful in their career and accomplish what they have to want, they realize the need for marriage.

Aw, this was an exceptionally good post. Spending some time
and actual effort to create a top notch article… but what can I say… I hesitate a whole lot
and never manage to get nearly anything done.

For starters, largest shareholder Uniterd States has refused
to participate in thee efforts while Russia, Brazil and China
specific willingness to contribute if they aree going to geet extra voting power
for it. But through international relation information you wiuld come to know the behavior which occurs acropss
the boundaries of states. International relation made a superb try and clarify your
doubts concerning thhe interaction of nations
globally. The webhosting provider offers solid plans with a good choice of features.
The company does not list a digital non-public server providing, howwever it payments its Elastic Sites service as a
VPS different, offering the convenience of use of a simple shared hosting plan and the efdiciency and scalability of a VPS.
We have been notably impressed with its media internet hosting plans, which embody choices for FFmpeg, SHOUTcast and podcast internet hosting.
Opportunities, due to this fact, are huge for businesses in Mongolia, for mining
companies and their supporting industries, as well as for individuals wwho
will need to create a supply chain that will get both uncooked
and processed merchandise from some comparatively inaccessible ardeas to the global markets.
President-elect Joe Bidn said Monday whereas campaigning in Georgia for Rev.

Raphael Warnock, who has been declared the winner of his seat against Kelly Loeffler, and Jonn Ossoff, who has declared
victory ovver incumbent David Purdue, although the outcome haven't been known as.

There are always too much of holiday makers that come by way of engines like
google. Term limits? There are lots of of points more compelling than flag burning.
We're only tto obey draconian laws and ccept what they have in retailer for us… But curbs had been eased
within tthe second half of the yrr and key sectors of the economy, comparable to manufacturing, have begun to recover.
It is prdicted that the financial system of the US goes to see
an increase of 2.Four per cent in the 12 months 2012 as a
rise of 2.6 per cent in the 12 months 2013.
Padoan also stated that the development iin between the US as well as the
euro space is diverging the place the situation of the US is getting higher on a faster pace whereas it's not so the case of the ero space.
Chicago's economy has been more numerous and proved exfra resilient, enabling it to better hold on to its population and tax base over
thee previous half-century while autocentric Detroit veered off
course. Gualberto Ranieri, an Ialian whose work ober time has
planted him in London, Chicago and now Detroit,
the place hhe heads communications for Fiat's Chrysler Group, sees this latest flip of
occasions in his newestt hometown when it comes to the symmetry of two
summers forty six years apart.

It was held in help of the victims and all families that suffered in the wake of the bombing that happened moments after Ariana had finished her efficiency that fateful
night. The Strictly star revealed she emailed her dissertation to her tutor moments ahead
off England's opening game against France. His whereabouts following hiis August three exit, announced in a letter to
hhis son Felipe VI mae public after he left, sprked
a guessing recreation which placed him in Portugal annd the Dominican Republic earlier than it emerged he was in Abuu Dhabi.

The runaway former king, who abdicated in favour of Felipe VI in 2014, was picture getting off a personal jet
earlierr than bunkering down in a £10,000 suite on the seven-star Emirates Palace.
In an interview with the Sunday Telegraph's Stella Magazine, she instructed how Thierry
Henry was bought for £11million in 1999 whereas she was paid
simply £100 per recreation - and used to wear cast-off shirts handed down by the males.
Alex was making £100 per game just as Thierry Henrfy had been bought foor Arsenal’s men’s for £11million. Former Arsenal Women's captain Alex Scott has revealed she was paid juhst £100 per maqtch while top
male players had been purchased by the north London facet ffor £11million.


No Very
Captcha Image