With tax day quickly approaching, Real Clear Sports.com complied a list of the top 10 worst athletes to ask for financial advice.
Here is the top 3:
3. Michael Vick
So, how did Vick go from one of the highest paid athletes to owing millions? To start, there’s the entourage. Vick was spending about $300,000 a month to support friends and family. But the biggest factor was who was in control of his money. Vick entrusted his money to a woman who is banned from working with any firm that trades on the NYSE because she bilked two old women out of $150K and a man who’s been accused of defrauding church members. His finances were such a mess that the bankruptcy judge appointed a trustee to help him out.
Vick owes over a million dollars in back taxes and it was recently discovered that he took funds from the pension plans of some of his employees. But if you are beginning to feel sorry for Vick, (“Then you’re not a dog lover”!) don’t. To pay off some of the debt, Vick will be selling three of his SIX homes. That’s less than one home per season. Do you really expect Vick to summer in Virginia? Do you?
2. Latrell Sprewell
In August of 2007, a federal marshal seized his $1.5 million yacht after Sprewell had failed to pay his mortgage on the boat. The yacht, with the classy name, Milwaukee’s Best, was auctioned in early 2008.
Oh well, at least Sprewell would still have his home in River Hills, Wisconsin. That is, until it was foreclosed on in May of last year. So, let’s see, he lost his yacht and his house. It can’t get much worse. Oh, and now Wisconsin has filed a lawsuit for unpaid taxes. Hopefull Sprewell isn’t expecting a big refund this year.
1. Mike Tyson
In 2003, he filed for bankruptcy. His debt reached over $27 million, about half of which was to the IRS. Maybe he shouldn’t have bought the two Bengal tigers for $140,000, for which he also had to pay a trainer $125,000 a year. Although, that’s just a small drop in the bucket. He could’ve cut back on his motor vehicles, on which he spent about $4.5 million. But perhaps the most inane purchase? How about a bathtub for his first wife, Robin Givens, that cost $2 million dollars.
Tyson could’ve gotten his finances in order had he won the $100 million lawsuit against Don King (he was suing his former boxing promoter for cheating him out of millions in promotions), but the parties reached a settlement of $14 million, of which Tyson saw none. All of the money went to paying down his debt.
When you figure that most of these athletes never seek out sound legal and financial advice, it’s easy to see how they blow through wads of money in a very short period of time. They just think that money will always come in and they don’t have to worry about anything long-term. How Vick blew through all his money is still beyond me.
