Sports Loans for Athletes and Entertainers
Helping retired and retiring athletes and entertainers restructure there assets after the large paychecks.
Most pro athletes and entertainers go from having very little to enormous wealth. A lot of them buy assets that banks don’t value, and when their contracts end or they retire, they have to adjust their life style. Chapes JPL helps with sports loans against those assets such as high end cars, jewelry, art, collectables, and memorabilia. These bridge loans are designed to provide intstant cash while the athlete or entertainer restructures their lifestyle.
According to the March 23, 2009 article in Sports Illustrated “How (and why) Athletes Go Broke” by Pablo S. Torre:
• 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.
The Wall Street meltdown is only the latest threat to athletes’ financial health. “Athletes have a different set of challenges,” says money manager Michael Seymour. “There’s a far shorter peak earnings period [in sports] than in any other profession, and in many cases they lack the time and desire to understand and monitor their investments.”
Most athletes and entertainers fall victim to the system of living in the limelight and living a lifestyle of luxury while in the height of their career. When the crowd stops cheering there is very little assistance in helping them adjust to a normal lifestyle. Chapes JPL, through their lending and asset liquidation abilities offer a viable solution for athletes and entertainers to achieve their new goals.
money management for athletes and celebrities is the key to their future
For a large percentage of athletes and entertainers, their financial future is gloomy at best. Surprisingly many of them have little or no clue as to what lies ahead, beyond their playing and entertaining days. The average career in sports is 3-5 years and despite big contracts and large paydays at least 80 percent of athletes can expect to face bankruptcy shortly after retiring.
Poor investment choices, misguided trust and outrageous spending, remain the leading causes of financial turmoil for many professional athletes.
The allure of “living the lifestyle” is obviously a poor investment. Athletes and celebrities succumb to an often ignored fact, If you spend more than you make, you’ll go broke.
Additionally athletes have a divorce rate of over 70 percent, and nothing can lead to financial ruin quicker than divorce. Divorce takes time and requires the liquidation of assets. At Chapes JPL, we help our clients through divorce by providing solutions like our sports loans based on those assets.
The hardships professional athletes endure after their careers are over are usually faced alone. Some examples of those hardships include:
- Toni Braxton has filed for bankruptcy again, with assets in the $1 to $10 million range and unpaid debts of $50 million.
- One of Bravo’s Real Housewives of New Jersey, Teresa Giudice is bankrupt. She and her husband, Giuseppe “Joe” Giudice owe $10.85 million in debt.
- Quarterback Mark Brunell, who won a Super Bowl for the New Orleans Saints filed bankruptcy.
- Banks foreclosed on boxer Evander Holyfield’s 10 million dollar home.
- Baseball pitcher Scott Eyre told the New York Post that 99% of his fortune is frozen and possibly gone.
- NBA’s Derrick Coleman, made 87 million playing basketball, has filed for bankruptcy.
- The NFL’s Raghib “Rocket” Ismail made nearly $20 million but lost it all.
- Former NBA star Antoine Walker has lost all of the $110 million he made during his career and has filed for bankruptcy protection. The former Boston Celtics and Miami Heat power forward is facing 20 foreclosures and says he owes millions to various casinos throughout the country.
- After making over $60 million in his career, Boston Celtic Kenny Anderson, does not have a dollar to his name and filed for bankruptcy in 2005.
- The former heavyweight champ Mike Tyson made an estimated $400 million yet at one point was worth less than $700!
- Sheryl Swoopes one of the most successful WNBA players of all time made over $50 million through her career but filed for bankruptcy in 2004.
- Sacramento King Bobby Hurley’s 140-acre horse farm in Florida was foreclosed on and sold at auction to help pay off $3.3 million worth of debt.
- Deuce McAllister of the New Orleans Saints, now owes over $6.6 million.
long term strategies
Additionally Chapes JPL works with Certified Financial Advisors who help create a plan to eliminate unnecessary expenditures and helps create a “life plan” that outlines how money from asset liquidation can be invested.
For over 30 years Chapes JPL has assisted hundreds of athletes and entertainers through down times in their careers. Located in Atlanta, GA, Chapes JPL has the experience, knowledge and capital to truly help.
Chapes JPL provides a lending service and as a consultant in obtaining sound financial advice, Chapes JPL does not recommend individual investment securities nor is this a solicitation for the sale or trade of such security instruments.