by John Darer® CLU ChFC MSSC CeFT RSP CLTC
Last Sunday's New York Post carried the rags-to riches-to rags story of 5-time world champion Iran Barkley, who defeated Thomas "The Hitman" Hearns twice in his pomp (1988 and 1992) and is a member of an elite group of fighters to have won world titles in three separate weight classes. Barkley was active through 1998 and purportedly had $5 million in earnings.
The New York Post describes Iran Barkley as "penniless but upbeat". Last week "he slept on the No. 6 subway train as it rattled between Pelham Bay Park and the City Hall station", after his niece changed the locks on the apartment they shared because he was unable to contribute to the household.
The New York Post says that during the 1980s and '90s, Barkley "frittered away millions. He bought a Lexus 300 and the latest-model Infiniti. But it wasn't all about himself. He gave to family and friends and threw block parties with pony rides for kids in the South Bronx".
The Post makes it sound like the Lexus 300 is an over-the-top sports car. Geez Louise! It's an entry level sports sedan. It doesn't sound as though he blew it all at once because Barkley states that he did not receive it all at once unlike big pay days earned by his big-name competition at the time like Roberto Duran and Thomas "The Hitman " Hearns.
Critical of The Post's coverage one reader states something more poignant. "All too sad and all too common. Some don't stay in school long enough to understand how to handle money, which a few schools now teach. So the churches and civic groups must take over, educating people at a young age as to excessive spending, interest rates, worthless relatives, hangers-on and so forth".
As the years go by I recall having read many stories like this and some worse. If you are a young athlete it is as critical to establish good financial habits as it is good work, sleep and eating habits. Establish a relationship with a good financial advisor early in your career and listen to him or her.
Read more of the New York Post story "Ex Champ Is Down For the Count" here: http://www.nypost.com/p/news/local/bronx/ex_champ_is_down_for_the_count_OAFD54Pffz6lbxUKTXNavM#ixzz15wLzbdIr
Through guaranteed income streams, structured celebrity endorsement fees and bonuses can afford an athlete long term financial security. For more information, please contact John Darer® CLU ChFC CSSC RSP CLTC at 888-325-8640