Odell Beckham Jr. caused quite a stir with his comments about why a ridiculous amount of money doesn’t go as far as folks think it should — and it got us wondering the truth of just how far
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Appearing on “The Pivot Podcast,” Beckham argued that a $100 million contract wasn’t enough for pro athletes to live off for the rest of their lives. The Super Bowl-winning wide receiver shared many factors as to why he believes this is true.
“I always explain this to people, you give somebody a 5-year, $100 million contract, that’s five years for 60,” Beckham explained. “We’re getting taxed. That’s $12 million a year that you have to spend, use, save, invest, flaunt, whatever.”
“I’m just being real,” said Beckham, who signed a then-record-breaking $95 million contract with the New York Giants. “I’m going to buy a car, get my mom a house. Everything costs money. If you’re spending $4 million a year, that’s really $40 million over five years, $8 million a year. You start breaking down the numbers, and that’s a five-year span, you’re getting eight million. Can you make that last forever?”
Shannon Sharpe, another NFL legend, begged to differ with Beckham’s financial calculations on his “Nightcap” podcast.
“OBJ, I’m going to be honest with you, bro. If you get $60 million dollars liquid and that can’t last you a lifetime, you’ve got a problem,” Sharpe said
“Do you really need 10 houses? Do you really need 15 cars? Do you need to buy everybody in your family a house that costs a million or two million dollars?” Sharpe asked.
So, Where Does $100 Million Go…?
If you have $100 million to your name, you’re considered wealthy. In that tax bracket, you’re losing as much as half of that in earnings to Uncle Sam off the top. So, let’s say you’re left with $50 million in cash as a worst-case scenario.
After that, many athletes have to pay agents, nutritionists, trainers not covered by their teams and other professional expenses. Even after that, you’re still richer than 99.95% of Americans.
However, there’s a long and tragic history of pro athletes who earned a lot of money during their playing days but lost it all in retirement. Whether it was by extravagant living, tax trouble, falling victim to professional scammers, or a basic lack of financial literacy, many pro athletes have lost their fortunes.
According to Anthem Strategists, nearly 80% of NFL players and around 60% of NBA players go broke or face financial stress within a few years of leaving their respective sport.
Allen Iverson, who is hailed as one of the greatest players in NBA history, earned $200 million in his 14-year Hall of Fame career. Almost a decade after his retirement, Iverson filed for bankruptcy due to legal battles, reckless spending, poor money management, and an expensive divorce that drained his finances. Thankfully, in his rookie year, Reebok established a private trust, setting aside $32 million that Iverson cannot access until he turns 55 on June 30, 2030
Antoine Walker, a former star in the NBA who made around $110 million during his 12-year NBA career, filed for bankruptcy in 2010. He was broke before his 40th birthday. Walker cited gambling, poor real estate investments, and financially supporting a large number of friends and family as factors that led to his financial collapse.
Pro Football Hall of Famer Warren Sapp reportedly earned $58 million by the time he retired in 2007. Just five years later, in 2012, he lost it all and filed for bankruptcy. At the time of his filing, he owed more than $6.7 million to creditors and back child support and alimony. His possessions included owning 240 pairs of Air Jordans worth almost $6,500; a $2,250 watch; and a lion skin rug worth $1,200.
While Beckham’s assertion sparked a massive debate and can be categorized as tone-deaf, given the average person’s financial standing, his words highlight how pro players must maximize their earning potential in a short period. Additionally, they must be surrounded by professionals who help them grow their wealth that should last for generations.
No matter what the amount of money is, the adage remains true: “It’s not about how much you make but how much you keep.”
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