NYDailyNews.com

News has broken that there will be a 2011 pro football season after all (woohoo!). Under the deal, veteran NFL players will still be paid millions for doing what they do best. However, the ability to earn an outsize paycheck doesn’t mean that all NFL stars are financially secure.

The Wall Street Journal reports this week that two big names on the gridiron are fending off creditors instead of opponents on the field:

Former NFL defensive back Rick Sanford has admitted to fumbling. Sanford, also a former University of South Carolina football star, pleaded guilty to bankruptcy fraud and was given 30 days’ home confinement and 100 hours of community service, according to the State. The newspaper noted that Sanford’s legal troubles began after he filed for Chapter 7 in 2009. When a bankruptcy trustee challenged his list of assets—which included two Lexuses and a time share—he withdrew his bankruptcy petition.

Sanford wasn’t the only footballer in the news this week. Veteran quarterback Mark Brunell’s finances may become more strained Friday, as the New York Jets cut the 40-year-old backup, the Associated Press reported. That means Brunell won’t have his $1.25 million salary to draw on as he attempts to right his financial ship following his bankruptcy, which was largely wrapped up this off-season. Another team, however, may still sign Brunell. Under the former Pro Bowler’s debt-elimination plan, Brunell had committed to paying $16,300 for his personal effects—including a Super Bowl ring—to prevent them from heading to the auction block.

As we’ve mentioned before, pro sports players seem especially prone to bankruptcy when they start living outside their means. This news just goes to show that it’s not what you earn, it’s what you keep.

NBA.com

Just when you think playing for the NBA couldn’t get any better between the insane paychecks and adoring fans, here’s a new perk: If you’re a big enough star, your employer will even pay your way out of trouble with the Internal Revenue Service.

That’s what former Miami Heat point guard Tim Hardaway found out last month when his team bailed him out of tax trouble. By the time he retired in 2003, Hardaway was paid nearly $50 million over the course of his 14-year pro career, but the IRS says he owes $120,748 in unpaid income taxes dating back to 2005 and 2006.

Last year, the tax agency filed a lien against his 7,542-square-foot mansion outside Miami. But the Miami Heat has come to his rescue, buying the home for just under $2 million. The five-bedroom property (complete with swimming pool and private basketball court) is now back on the market for $2.5 million.

Unfortunately, financial illiteracy among pro sports players is nothing new. (This article from CBS Sports describes how rampant bankruptcy runs among retired basketball players, even as early as 5 years after they leave the game.)

If taking care of their own is a priority, perhaps rather than making a habit of bailing former headliners out of trouble, the NBA can focus more of its resources toward money-management classes for current players — before it’s too late.

Salary research organization PayScale surveyed alumni of the top 64 universities with men’s basketball teams participating in March Madness this year. A few notes about the data: Only graduates with 5 to 15 years of work experience were selected to give a portrait of mid-career salaries; unemployed and self-employed alumni were excluded. Median figures were used instead of averages (a wise decision, since many of the top sports heroes go on to make millions in the pros, which would skew the numbers).

Perhaps not surprisingly, Duke takes home the championship by a wide margin:

So how does your bracket stack up? See the full PayScale report here.

(via Economix)

Walker was well-known as a gambler on the court. A prolific outside shooter, he was often criticized for attempting 3-point shots at the expense of higher percentage inside shots. (An average NBA three pointer goes in only 36.7% of the time compared to 48.5% for a 2 point shot.) This criticism was largely misplaced: Walker averaged 0.98 points per 3 pointer attempted versus 0.89 points per 2 pointer attempted.

His gambling off the court, on the other hand, was far less publicized at the time — and far more personally damaging. When you’re playing “$15,000 hands with Michael Jordan during an all-night gambling session where estimates of money lost and won totaled several hundred thousand dollars,” you might have a problem. A salary of $49 million — a conservative estimate of what he took home after taxes and agent fees — is a lot, but that’s not Jordan money.

And as we’ve talked about before, the hidden costs of being a celebrity and “taking care” of friends and family adds up quickly:

Off the court, there were the cars, the jewelry, the houses, the suits, the gambling. He liked to move in an outsized entourage; his mother estimates that, during his playing days, he was supporting 70 friends and family members in one way or another. And speaking of his mother, he built her a mansion in the Chicago suburbs, complete with an indoor pool, 10 bathrooms, and a full-size basketball court.

[…]

Living at the Bishops Forest condominium complex in Waltham during the Celtics season, Walker turned the pavement surrounding his home into a virtual luxury car lot – two Bentleys, two Mercedes, a Range Rover, a Cadillac Escalade, a bright red Hummer. Often, the vehicles were tricked out with custom paint jobs, rims, and sound systems at considerable added expense. He also collected top-line watches – Rolexes and diamond-encrusted Cartiers.

The lessons here are simple and apply to everyone, not just athletes making $9 million a year: Make sure you’re saving a good chunk of your salary, limit your risky investments/gambles, and create and track a budget so you can stay on top of your cash flow.