Do the bankruptcy rates of pro athletes and lottery winners show poverty is about more than lack of money?
Question by Yak Rider: Do the bankruptcy rates of pro athletes and lottery winners show poverty is about more than lack of money?
What happens to many athletes and their money is indeed hard to believe. In this month alone Saints alltime leading rusher Deuce McAllister filed for bankruptcy protection for the Jackson, Miss., car dealership he owns; Panthers receiver Muhsin Muhammad put his mansion in Charlotte up for sale on eBay a month after news broke that his entertainment company was being sued by Wachovia Bank for overdue credit-card payments; and penniless former NFL running back Travis Henry was jailed for nonpayment of child support.
In a less public way, other athletes from the nation’s three biggest and most profitable leagues—the NBA, NFL and Major League Baseball—are suffering from a financial pandemic. Although salaries have risen steadily during the last three decades, reports from a host of sources (athletes, players’ associations, agents and financial advisers) indicate that:
• By the time they have been retired for two years, 78% of former NFL players have gone bankrupt or are under financial stress because of joblessness or divorce.
• Within five years of retirement, an estimated 60% of former NBA players are broke.
According to Chelmsford wealth counselor Szifra Birke, roughly one-third of lottery winners find themselves in serious financial trouble or in bankruptcy within five years of turning in their winning ticket.
$ 13 Million Florida Lottery Winner Dies Broke
April 25, 2008
Kris Alingod – AHN News Writer
Washington, D.C. (AHN) – A former lottery winner who was facing tax fraud charges died broke early this month, reports said on Thursday.
Alex Toth, who won a $ 13 million jackpot nearly two decades ago, died early this month, his attorney Bjorn Brunvand is quoted in a report by the Suncoast News. He was scheduled to stand trial in June for filing fake tax forms together with his wife, Rhoda.
Toth and his wife were charged with tax fraud in 2006. His wife has entered a plea agreement with prosecutors, according to the Palm Beach Post.
Florida lottery winner dies penniless
Jackson County Floridan
By Elaine Silvestrini, Media General News Service
Published: April 24, 2008
TAMPA – Former lottery multimillionaire Alex Toth, who was broke and facing tax fraud charges, has died at the age of 60. Toth was scheduled to go on trial in June, accused of filing fake tax returns with his wife, Rhoda, who has pleaded guilty and is awaiting sentencing.
By the time the couple were charged in 2006, authorities said they appeared to have no assets. The $ 13 million Florida Lotto money won 18 years ago was long gone, and the Hudson couple were living in squalid conditions, their only electricity coming through an extension cord rigged to their car engine.
The Toths said they lost the money through gambling, gifts and living the high life. The money created rifts in their family, leading to a lawsuit between Rhoda Toth and her son in 1996. Toth’s attorney, Bjorn Brunvand, said his client died in early April. Pasco County Health Department spokeswoman Deanna Krautner confirmed Alex Joseph Toth died April 5. The cause of death was not released.
Answer by Mr. Obama
Poverty is about lack of money? Hmm..whoda thunk it…
Give your answer to this question below!