10 Athletes Who Sucked at Business
Even when you’re born with all of the god-given talent in the world, being a professional athlete takes hard work and dedication.
That said, many sports stars have a strong work ethic and drive to succeed.
But where some of these same athletes go wrong is in thinking that they can walk right into the business world and dominate.
Being successful in business and on the sports field are two entirely different skillsets, so it’s little surprise that some pros fall flat on their face with investments.
Let’s look at 10 athletes who quickly burned through their millions trying to be the next Warren Buffet.
1. Curt Schilling
Having played video games like EverQuest and World of WarCraft throughout his life, former Boston Red Sox and Arizona Diamondbacks pitcher Curt Schilling decided to invest heavily into the gaming market.
Following his retirement from baseball in 2008, Schilling started 38 Studios in Rhode Island. The state gave him a $75 million loan under the promise that 38 Studios would create 450 jobs by the end of 2012.
The company never made it this long, though, and defaulted on its loans in May 2012.
2. Mark Brunell
In 2011, former Jacksonville Jaguars QB Mark Brunell filed for bankruptcy with $24.8 million in liabilities and $5.5 million in assets — a terrible ratio in the business world.
According to the Daily Mail, Brunell put his money into 9 businesses post-retirement, 5 of which failed.
One of the biggest busts was when he lost $11 million investing in high-end properties in Jacksonville. He also lost “every cent” of his $9 million investment in a Whataburger franchise.
3. Scottie Pippen
Having won 6 NBA championships alongside Michael Jordan, Scottie Pippen is regarded as one of the best basketball players of all-time. However, the retired Chicago Bulls forward was anything but when he started investing his career earnings.
This turned out to be a typical case of a pro athlete trusting the wrong guy, as Pippen invested over $20 million with adviser Robert Lunn. Despite coming highly recommended, Lunn stole lots of money from Pippen, including forging Pippen’s name to cover a $1.4 million personal debt.
The end result was a broke Pippen, and another lesson to pro athletes to monitor your own money and employees…and never buy a $4 million private jet that doesn’t work.
4. Bill Buckner
Former Boston Red Sox first baseman Bill Buckner is perpetually known as the guy who botched a ground ball in the 1986 World Series, allowing the New York Mets to come back and win.
Sadly, Buckner didn’t redeem himself in business. He started a car dealership in Idaho that went bankrupt, taking the rest of his earnings from a 21-year MLB career.
5. Derrick Coleman
After an NBA career that saw him become a 2-time All-Star and make over $90 million, Derrick Coleman wanted to revitalize his old neighborhood in Detroit.
So the former New Jersey [Brooklyn] Nets forward invested millions into the Coleman Corners Mall and Sweet Georgia Brown restaurant. Unfortunately, Coleman did so into the teeth of an economic recession and declared bankruptcy with $2.19 million in unpaid loans.
6. Kenny Anderson
While 2 failed marriages and lavish spending habits didn’t help, Kenny Anderson — Coleman’s teammate — blew the rest of his $63 million-plus NBA earnings on bad investments.
Via Forbes, Anderson offers important tips to pro athletes after their careers: 1) be cautious on who handles your finances, 2) invest wisely, and 3) make sure no helpers/employees are stealing from you.
7. Lawrence Taylor
Initially, Lawrence Taylor’s post-NFL career went well, as he launched a publicly traded company called All-Pro Products. The company began being traded at $5 per share, then soared to $16.50 a share within a month, giving Taylor $10 million in shares.
Unfortunately, the SEC found that two traders from Hanover Sterling & Company manipulated All-Pro Products’ stock prices, while the company actually lost $900,000 in its first month. Taylor’s shares were soon worthless and he eventually went broke.
Since that time, Taylor has managed to make money through TV and movie appearances.
8. Allen Iverson
Having made over $200 million during his NBA career, Allen Iverson is one of the biggest riches-to-rags stories in history. Silly purchases is one reason for Iverson going broke, but he also squandered money on bad investments.
The end result is that one of the greatest combo guards of the modern basketball era once claimed that he didn’t “even have money for a cheeseburger.”
9. Warren Sapp
While still with the Oakland Raiders, Warren Sapp invested into a low-income housing project in Fort Pierce, Florida in 2005. Sapp’s partner gave the okay for construction crews to build the houses, despite the buyers having not been approved for mortgages.
The end result was that none of the houses were sold, and Sapp was out of the rest of his NFL earnings. Lucky for him, he’s at least found commentary work over the years.
10. Raghib “Rocket” Ismail
Nicknamed the “Rocket” for his incredible speed, Raghib Ismail made a lot of money in football, including a record-$18.2 million contract in the Canadian Football League.
But he just as quickly lost much of his money through post-retirement business deals. In one investment, the Rocket put $300,000 into a Hard Rock Cafe knockoff known as the Rock and Roll Cafe. It never even opened and he lost all of his money.
