Financial woes for athletes: How the leagues can help

I just read an interesting article from Forbes (http://www.forbes.com/sites/jamesmarshallcrotty/2012/02/21/allen-iverson-earned-over-200-million-in-his-nba-career-hes-now-broke-say-what/) about Allen Iverson's financial downfall and current debt troubles despite earning over $200 million during his NBA career. It is embarrassing how little guidance many of these athletes receive (or accept, for that matter) as they begin to earn huge amounts of money. 

"an NBA that cared more about its personnel and brand would have required that Iverson, as well as all players, pass a yearly financial planning and retirement course before they were allowed on the hardwood (including how to read a financial statement, why to run from promises of a “guaranteed” return, and how a rock-solid prenup, living will and family planning can prevent you from getting soaked by a gold-digging ex)."

These professional sports leagues need to address this issue not only for the well-being of their players but for a stronger economic future for this country. According to RAM Financial Group (http://www.ramfg.com/RAM-Financial-Group-Solutions-Professional-Athletes-Athletes-Services) the average NBA career is 4.8 years, average NFL is 3.5 years, average MLB is 5.6 years and average NHL is 5.5 years. It would be in the best interest of these leagues to require the players to get educated on financial management. Simple savings and investment plans could change everything for these athletes as well as their families and communities. 

Many athletes don't realize how their maintained financial success could benefit others. Take, for example, the players that start nonprofit foundations or other programs. These endeavors not only benefit the community by fostering positive growth but they also create jobs. While the athlete is still relevant he or she must create value that extends beyond the court or field, enabling them to still be a relevant figure when their playing days are over. Athletes have access to so many people and opportunities while they are playing that they often do not take advantage of and once they are no longer affiliated with a team or league they lose these connections. Both the leagues and the athletes should be keen on trying to eliminate these financial failures because it will benefit both and create a standard for future athletes. 

There is such a focus on the immediate future and the present success that athletes do not think about any long term goals or the possibility that even if they avoid any serious injuries in their playing careers they may not be a professional athlete beyond their mid-thirties and those are the extremely fortunate athletes. Even if these athletes played four years in college of their sport, based on the averages, these athletes on average will be out of their respective leagues by the age of 27, 26 or even 25. As a country, community and industry we need to care more about the sustained success of these young athletes who, with the right guidance, could use their opportunities and status to do so much more than just wow us on a playing field.