Chris Pronger told how NHL players are losing their money

Chris Pronger talked about finances on Twitter. AOP

– It is estimated that more than 50% of professional athletes have financial difficulties at the end of their careers, Chris Pronger notes.

An NHL legend who joined Twitter in January wrote a long thread on Monday about why sports millionaires often run into financial difficulties after a career.

You can read the Progner thread at the end of the story or from here.

According to Pronger, there are three main reasons for sad economic stories.

– Point 1: Athletes tend to waste early in their careers because they imagine a money train pounding forever. (I’ve been in the same situation and done the same), Pronger admits.

– For example, I’ve heard crazy stories about guys who have spent a million dollars at a strip club!

Money could be invested even more sensibly, as in practice many people will catch up on money as soon as their career ends. And it can happen at any time.

– We’re only one injury away from retirement. Always! Pronger recalls.

Gross vs. net

Also, many young professional athletes, according to Pronger, don’t realize that two million dollars out of a two million dollar salary doesn’t really fall into their hands.

The NHL will first withhold an escrow charge on a player’s gross salary, which is 17.2 per cent this season.

Escrow money goes to a separate fund for players, which aims to equalize the income between owners and players in a 50-50 ratio. If players’ salaries have been less than half of the NHL’s income, escrow payments will be refunded to players.

In addition to Escrow, Pronger says taxes eat 39 to 56 percent of the lychee, depending on the city. Agents, in turn, export 3-5 percent of their revenue.

Such expenses can come as a surprise to many young players if they don’t have smart people around to tell them how things are going.

– I know a guy who got a $ 2 million signing bonus. He immediately bought a $ 400,000 car and a $ 1.5 million home for his mother. He didn’t realize he had a tax debt, Pronger says.

In addition to mandatory spending items, multiple players may put up to $ 5,000 to $ 10,000 a month into their own chef, physics coach, or the like.

– An athlete could easily spend $ 20,000 a month, Pronger says.

There are enough scammers

In section two, Pronger highlights people who take advantage of athletes.

– Financial advisers, lawyers, etc … They assume we don’t read through the papers (which is often true) and charge us more than ordinary people.

Despite this, athletes often empower their advisors to manage their funds, leaving them unable to manage their own cash.

– It’s crazy! Pronger writes.

The man tells a sad case study.

– From Aroldis ChapmanA NY Yankees feeder, a financial adviser stole $ 3 million from proxies.

According to Pronger, young sports millionaires are also often offered investment targets that should be quickly hit with, for example, $ 500,000. Especially in investment locations where a decision should be made quickly, you should be careful.

– My rule after a few mistakes has been: If someone needs an answer right away, the answer is always no!

A group of friends

In the third point, Pronger highlights the athlete’s circle of friends.

– Many players have Entourageto take care of. It’s hard for many to let go of friends at home, Pronger knows.

The world of thought in a group of guys is often that if one of them gets to the top, everyone gets there with the player’s wing.

It still works when money comes in through doors and windows, but many can’t say “no” to friends even after their careers are over, and money doesn’t come from anywhere.

According to Cap Friendly, Pronger earned $ 111 million in his career, which is about $ 101 million at the current rate. Pronger could have wasted his money too, but it didn’t happen because the man had reliable people in the background directing him.

– Many aren’t as lucky, Pronger knows.

If the tweeter chain does not appear on your device, you can view it from here.