Why do so many footballers go bankrupt?
Windass was a spiky but effective striker whose 18-year senior career had taken him through all four divisions, including spells in the Premier League with Bradford City, Middlesbrough and Hull City, plus the Scottish top flight with Aberdeen. While he was never one of the game's superstars, he had earned good money at a time when English football was booming.
Advertisement
Yet, seven years after his 2009 retirement, Windass was effectively broke, his accounts emptied by a tax bill for £164,000 ($223,000 in today's exchange) — a legacy of an ill-advised investment in the movie industry — and a divorce settlement.
'I remember going to a pizza place and there was a couple ordering when we walked in,' Windass tells The Athletic. 'I read this lad's lips and he said, 'That's Dean Windass, he's just gone bankrupt'. It was embarrassing.
'You retire and you leave football behind. That's hard enough. To have this (bankruptcy) just made it worse. The stress was killing me.'
Windass, though, is not alone.
Former England internationals David James, Wes Brown and Lee Hendrie have all been declared bankrupt since ending careers which took them to the highest level, while His Majesty's Revenues and Customs (HMRC, the UK's tax authority) also filed a petition against Emile Heskey, the ex-Liverpool and England striker, over unpaid taxes totalling £1.6million last year.
Just last month, former England player Trevor Sinclair was made bankrupt after 'burying his head in the sand' over a £36,000 tax debt. Soon after, another ex-England international, Shaun Wright-Phillips, was petitioned for bankruptcy by HMRC at London's High Court. A representative of Wright-Phillips told The Telegraph that he was unaware of the matter and promised it would be 'strenuously contested.'
And they are just the recent ones.
Jermaine Pennant, Celestine Babayaro, Chris Sutton, Asamoah Gyan and Royston Drenthe all had elite careers only to run out of money in retirement, while further back, Diego Maradona and Ronaldinho, two of the sport's all-time greats, fell on hard times once the lights went out on their careers.
Every player in such circumstances will have a different story to tell, although there tend to be common themes: misguided investments, costly divorces or a lavish lifestyle that got out of hand. But why do many suffer these financial pitfalls, and what could football do to prevent it from happening so frequently?
The England squad that won the Under-17 World Cup in India in 2017 looks more impressive as time has gone on.
Led by attacking talisman Phil Foden, whose two goals inspired a 5-2 defeat of Spain in the final, that crop also included Marc Guehi, Jadon Sancho, Emile Smith Rowe, Conor Gallagher, Angel Gomes, Morgan Gibbs-White and Callum Hudson-Odoi — all beginning international journeys that would lead to England's senior ranks and some of Europe's biggest clubs.
Advertisement
Less celebrated, but just as important to the team's success, was Curtis Anderson.
England's goalkeeper for six of their seven games at that tournament while in Manchester City's academy, Anderson quit professional football in 2022, at the age of 22, following the end of a two-year contract with EFL club Wycombe Wanderers, during which he never made a first-team appearance for them and was twice loaned out to non-League sides.
There had been no way through at City before that, a club he had joined from north-west neighbours Blackpool as a schoolboy for £15,000, and a dwindling enthusiasm for the game led Anderson to study for a diploma in financial planning.
'A club can't give you financial advice, but in terms of education, young players get minimal support,' says Anderson, now 24 and head of sports financial planning at Markland Hill Wealth. 'We used to get talks from people when we were 16 or 17 about the importance of being careful with gambling, with alcohol, different things like that. I might be wrong, but I don't remember anyone coming in and talking about finance.
'The only education I got from within the club was my goalkeeping coach saying the odd thing. It wasn't financial advice, just a few little words about putting some (money) away and being careful. He was like a dad figure, trying to look out for you. It was never the club. It's a sticky subject.'
Anderson has visited clubs in the Premier League and EFL in his new career and often finds footballers unsure of what to do with their wealth. Their wages will be spent on fast cars, big houses and expensive watches, but plans are not always long-term.
'A lot of the lads who buy into what we try to do are the ones who are a bit older,' says Anderson. 'Say they're 28 or 29, knowing they'd better do something. But they could've made their lives so much easier if they'd started off at 21.
Advertisement
'I've been in to see clubs and academy players and I wouldn't ask or tell them to do anything. I would only ever say to think about these good habits now. You can get used to a lifestyle, and you never think it will end. That's what I'm seeing now. Even in the Premier League. I try to get simple concepts across, and it can be difficult because they've never had to think about it.'
Soufyan Daafi can tell you a similar background story to Anderson.
Two decades ago, he was in the youth setup at Dutch club Ajax, until the age of 16, playing alongside his close friend Kenneth Vermeer, a goalkeeper who made it all the way to become a full Netherlands international. Together, they founded Sport Legacy eight years ago and now look after the interests of over 100 athletes internationally.
'Education is the first part,' says Daafi. 'A lot of players have a certain lifestyle but once your football salary stops and you have to pay a mortgage and provide for your family, you will have a gap.
'There are also some people in the industry who take advantage of football players. People told me not to start because footballers are dumb, they spend all their money. I wanted to show them. I wanted to minimise the number of players going broke. My goal is to change the perspective by entering at the youth level, give education.'
Neither Anderson nor Daafi would ever begrudge their clients spending their earnings, but both stress the need for a balance. Buying an expensive car is perhaps inevitable with the huge disposable income attached to a Premier League contract. As are the designer clothes and lavish holidays. Ryan Babel, the former Liverpool and Netherlands winger, knows that.
'I had my fair share,' says Babel, who now has an ambassadorial role for Sport Legacy in Dubai. 'I remember buying a Bentley when I was 21 and a Rolls-Royce when I was 25, but overall I didn't really spend too much money on cars.
Advertisement
'It was more on the lifestyle. Going on a holiday, renting an expensive house, spending money on going out. The usual stuff. I also recall paying for everyone (among his group of friends) — every single thing. At one point, I had to put my foot down and say it wasn't Christmas every day. You become more mature and understand that it isn't sustainable.'
Babel credits his parents for 'teaching him the value of money' while growing up. 'The game doesn't provide you with any know-how,' he says. 'It's your own responsibility to manage your finances. You don't always finish school because of the age you go into professional sport, so you don't complete your academic studies and know how to deal with a lot of money. That's often where it goes wrong for the guys. There isn't the guidance there.
'Some of these guys are like walking ATMs and the people around them know that. They want to enjoy the ride as much as they can. That's unfortunate, but it comes from a place where the players usually want to help others and feel acknowledged.
'But the sad reality is that once it's gone, you see the other people (in a player's entourage) disappearing. We know a lot of stories like that. You see their environment disappear. It's sad.'
There are no official numbers that record the number of former footballers ending up bankrupt.
Figures put forward by XPro, a charity for ex-players, suggested in 2013 it was a fate that befell three in five within five years of retirement but those numbers have been disputed. Gordon Taylor, when head of the Professional Footballers' Association (PFA), told the BBC he believed a more accurate figure was between '10 and 20 per cent'.
Nobody, though, would dispute that the frequency of high-profile bankruptcy cases jars with playing careers where millions can be earned in a matter of months. It is estimated that Premier League players now make an average of over £100,000 a week in a division where the 20 clubs' combined wage bills climbed to £4.1billion in the 2022-23 season.
Advertisement
The numbers were smaller at the turn of the century but still insufficient to insulate some of the Premier League's most recognisable names.
James, who won 53 caps for England and played for Liverpool, Manchester City, Aston Villa, West Ham and Portsmouth among others, was declared bankrupt in 2014 and forced to sell off his personal memorabilia collection. It was widely reported at the time that his divorce from wife Tanya had cost the former goalkeeper £3million in 2005.
Hendrie, the former Villa midfielder, is another. HMRC filed a bankruptcy petition against Hendrie when he was still a player in 2012, with his financial worries contributing to depression and 'five or six' attempts at killing himself, according to an interview with The Guardian in 2020.
'My intentions were to look after my family and put my money into investments,' Hendrie told BBC Radio 4 the following year. 'But along the way, I had a divorce which hit me hard in the pocket and then I bought houses which turned out to be bad investments. It seemed like all the people advising me didn't have any answers. I had nowhere to turn.'
Windass knows such stories well. He suffered his own struggles with mental health after ending his playing career, and his finances were placed under strain as he was pursued by HMRC.
'I was playing for Middlesbrough in 2001 and we had someone come to the training ground offering the chance to invest in the film industry,' says Windass, who was on £30,000 a week at the height of his career and now continues to pay HMRC £500 a month.
'I didn't know much about it but I looked on this form and there was every celebrity you could think of that was part of it. I'm thinking, 'If they've gone into it, I'll get involved'.
'I invested thinking that, after 15 years, I'd get this nice lump sum. The years went on and I kept getting these brown envelopes through the door. I was thinking, 'What the bloody hell is this?' To cut a long story short, I got a tax bill for £164,000.
Advertisement
'I paid 40 per cent tax throughout my career when earning your big money. I wasn't a tax dodger, I just went into the wrong scheme. I look back now and obviously it was a bad decision.'
Tax issues and misguided investments are often at the root of bankruptcy claims brought against former footballers. It was also HMRC that brought a case against former Manchester United and England defender Brown in 2023. 'When you're making a lot of money, you need the right people,' he told the Ben Heath podcast last year. 'And I would say that's something I didn't have.'
'Tax is a massive thing,' accepts Anderson. 'Maybe not really understanding what they need to be paying. It could be agents' fees, private medical insurance the club might have on you, these different things that will get factored into your tax code. If your everyday accountant isn't aware of it and five years later you get hit with a bill with interest and fines, you've got to find money quickly. And if you can't, that's how it will happen.'
There are players who fight addiction on the road towards financial ruin, such as former Premier League and international stars Keith Gillespie and Paul Merson, but the high rate of post-retirement divorce is another recognised factor.
Dividing wealth up has the potential to bring on financial challenges at a point in time when earning power has been diluted.
Windass accepts that the split from his then-wife, Helen, took a toll. 'I lost a lot of money through my divorce,' says Windass, who has since rebuilt his life and is confidently taking on a dementia diagnosis from last year. 'That's my doing, that's my fault.
'I couldn't speak for other players because I don't know the stories but there's a high number of players who get divorced and then end up bankrupt. If it hadn't been for that investment and my divorce, I wouldn't have been in that position.'
No two case studies are the same but the stories carry parallels that create a pattern. Millions can be earned and squandered. Only when the income ceases do the regrets come.
'How it happens and how to prevent it is more about having the right people around you,' says Anderson. 'I harp on about the education. You don't need to know everything, you just need to know you have to do something.'
(Top photo design: Kelsea Petersen/The Athletic)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
6 minutes ago
- Yahoo
I Have $500k in a Roth IRA and Will Receive $3,000 Monthly From Social Security. Can I Retire at 70?
Waiting until age 70 to retire can offer you some clear financial advantages, including maximum Social Security payments and more time for your investments to grow. But even with those benefits and a half-million-dollar nest egg, determining whether you have enough to retire at age 70 will depend on your lifestyle, health, investment strategy and spending needs. Here's what you should consider when deciding to retire at a certain age. If you need help evaluating your personal retirement outlook and building a withdrawal strategy, consider speaking with a . How Waiting Until 70 Changes the Equation An American male has a 30.2% chance of dying before reaching age 70, according to the Social Security Actuarial Life Tables1. An American female has a 19.1% chance of dying before reaching the same age. If you think you can beat those odds, planning to retire at 70 rather than earlier offers several financial advantages. By delaying Social Security until this age, you'll receive the maximum possible monthly benefit, typically 132% of your full retirement age amount2. That increase, combined with the extra years your investments have to grow, can meaningfully improve your financial outlook. Waiting until 70 also shortens your expected retirement horizon. If you live to 90, your retirement will last 20 years instead of 25 or 30, reducing the strain on your portfolio. That extra time also allows your Roth IRA to continue compounding tax-free, increasing your retirement income potential. For someone with a relatively modest nest egg, that delay can be important. Even with these benefits, however, you'll still need to assess whether a $500,000 Roth IRA and $3,000 in Social Security provides enough income to support the lifestyle you want. How Much Income Can a $500k Roth IRA Generate? A common rule of thumb for retirement withdrawals is the 4% rule. Applying this to a $500,000 Roth IRA means withdrawing $20,000 per year, or about $1,667 per month. When you combine this with your $3,000 monthly Social Security check, your total monthly income would be approximately $4,667, or approximately $56,000 annually. This level of income can support a relatively comfortable lifestyle in many areas of the country, particularly if you own your home or have minimal debt. However, if you need to withdraw more than 4% annually, such as $2,500 per month or $30,000 per year from your Roth IRA, you'll raise your withdrawal rate to 6%. That increases the risk of depleting your savings too early, especially in the face of inflation, market downturns or unexpected expenses. Longevity Risk and Spending Horizon SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. Waiting to retire at 70 helps address the possibility of outliving your money, known as longevity risk. But even with a shorter retirement window, many people live well into their 90s. That means you could still need to fund 20 to 25 years of living expenses. The longer you live, the more you'll need to manage your withdrawals carefully. Drawing too much too early can drain your portfolio fast. But being too conservative with withdrawals, by comparison, could also mean sacrificing comfort without need. That's why you should build a flexible income strategy that can adjust to market performance and personal needs. How Investment Strategy Affects Monthly Income How you invest your $500,000 also makes a major difference in how long it lasts and how much income it produces. Consider the pros and cons of various retirement investment strategies: : Keeping your Roth IRA in cash or CDs limits volatility but also caps growth. At current rates of about 4% for CDs, your earnings would be limited to $20,000 annually and you may not be able to keep up with inflation. : A bond-heavy portfolio might return 3% to 5% annually. That could generate $15,000 to $25,000 per year in income, before drawing down principal. This approach balances stability and income, but requires careful bond selection and reinvestment planning. : Investing in equities increases growth potential. The S&P 500 averages around 10% annually, but with higher risk and volatility. You'd need to reduce withdrawals in down years to avoid sequence risk. : A mix of stocks and bonds can offer both growth and income. A typical 60/40 portfolio might return 5% to 7% annually, providing a good balance for most retirees. Since Roth IRA withdrawals are tax-free in retirement, your entire distribution is available for spending. This boosts your effective income and simplifies budgeting. What Lifestyle Can You Afford on $4,667/Month? A monthly retirement income of $4,667 could cover a comfortable lifestyle in much of the U.S., but it really comes down to your expenses and lifestyle choices. If your home is paid off, you live in an affordable area and your hobbies don't cost much, this amount may go further than you expect. But in a high-cost city or with large medical bills, you might find it harder to stretch that income. Typical retirement expenses include: Housing (including property taxes, insurance, or rent) Food and essentials Transportation Healthcare and insurance premiums Leisure, travel and entertainment Unexpected costs, such as home repairs, dental work or inflation shocks Creating a detailed retirement budget can help you ensure your expected expenses fit within your available income. How to Stretch Your Savings Further If your projected expenses exceed your anticipated income, you still have options: Delay large purchases or downsize your home to reduce housing costs. Consider purchasing a single premium immediate annuity (SPIA) to guarantee monthly income for life. Consider part-time work or freelance income to add flexibility to your budget. Limit discretionary spending during market downturns to preserve principal. Rebalance your portfolio periodically to maintain your target asset allocation and reduce risk. The longer your retirement lasts, the more important it is to keep spending in check and maintain growth potential in your investments. Other Key Factors to Consider Several additional considerations could affect your retirement outlook: Marital status: A surviving spouse may receive a larger Social Security benefit, but losing one income stream could affect long-term planning. Healthcare: While Medicare begins at 65, out-of-pocket expenses such as premiums, deductibles and long-term care can still add up. Taxes: While Roth IRA withdrawals are tax-free, you may still pay taxes on up to 85% of your Social Security benefits depending on other income. Estate planning: A Roth IRA can be a powerful tool for passing wealth to heirs, especially because it avoids required minimum distributions (RMDs) during your lifetime. Bottom Line With $500,000 in a Roth IRA and $3,000 a month from Social Security, retiring at 70 can work for many people if they budget carefully and keep expenses moderate. But your comfort will specifically depend on how well you manage your spending, investments and unexpected costs. Retirement Planning Tips A financial advisor can help you create a retirement income strategy and manage your nest egg. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now. If you want to know how much your nest egg could grow over time, SmartAsset's retirement calculator could help you get an estimate. Photo credit: © © © D Actuarial Life Table, ︎ If You Were Born between 1943 and 1954, Your Full Retirement Age Is 66 , ︎ The post I Have $500k in a Roth IRA and Will Receive $3,000 Monthly From Social Security. Can I Retire at 70? appeared first on SmartReads by SmartAsset. Sign in to access your portfolio
Yahoo
6 minutes ago
- Yahoo
Karrion Kross in studio, David Feldman, Shayna Baszler and more
Ariel Helwani has another full lineup for this busy week in combat sports. Join "The Ariel Helwani Show" live on Uncrowned and YouTube at 1 p.m. ET/10 a.m. PT/6 p.m. UK time as Ariel and the Boys In The Back dissect the latest news. Wednesday's lineup can be seen below. 1 p.m. ET: Ariel and the guys kick things off with On The Nose to address viewer questions. 2:00 p.m. ET: Karrion Kross will be in studio to discuss his current status live and in person. 3:15 p.m. ET: Pro wrestler and former MMA fighter Shayna Baszler will check in. 3:45 p.m. ET: BKFC president Andrew Feldman will talk about the latest in the bare-knuckle boxing world. Catch all new episodes of "The Ariel Helwani Show" live every Monday, Tuesday and Wednesday at 1 p.m. ET on Uncrowned and The Ariel Helwani Show's YouTube page. To listen to every episode, subscribe on Spotify or iTunes.
Yahoo
6 minutes ago
- Yahoo
How to watch Aston Villa vs Newcastle United live: Stream link, TV channel, team news, prediction
Villa Park is the scene as a pair of UEFA Champions League competitors begin their Premier League seasons, with Aston Villa and Newcastle United boasting familiar rosters but different outlooks. Villa have retained almost all of their key pieces and so there aren't a ton of new faces, with Nice forward Evann Guessand the player set for the biggest potential impact. Midweek rumors of Villa man Jacob Ramsey being eyed by Newcastle aim a little tumult. WATCH — Aston Villa v Newcastle United Newcastle's summer has been problematic, largely because of the confusing saga of star striker Alexander Isak. The Swedish striker helped the Magpies to the League Cup but consternation over his contract has him reportedly holding out for a move to Liverpool. And the Magpies have also lost out on a number of rumored targets in Joao Pedro (Chelsea), Hugo Ekitike (Liverpool), and Benjamin Sesko (Manchester United) amongst others. And, yes, those trio have invigorated Premier League top-four rivals. Callum Wilson, Sean Longstaff, and Martin Dubravka have swapped Newcastle for new Premier League digs, while Eddie Howe does have Nottingham Forest playmaker Anthony Elanga and Southampton loanee Aaron Ramsdale in the fold. AC Milan back Malick Thiaw has also joined the side, but the Toon Army will have some trepidation about competing on all fronts (again) as the UCL looms large this Fall. For live updates and highlights throughout Aston Villa vs Newcastle United, check out PST's live blog coverage below. How to watch Aston Villa vs Newcastle United live, stream link and start time Kick off time: 7:30am ET SaturdayVenue: Villa Park — Aston, BirminghamTV Channel: USA NetworkStreaming: Stream live online via Aston Villa team news, focus OUT: Emiliano Martinez (suspension), Ross Barkley (knock), Andres Garcia (knock) | QUESTIONABLE: Morgan Rogers (ankle) Newcastle United team news, focus OUT: Alexander Isak (internal suspension), Joe Willock (calf) | QUESTIONABLE: Anthony Gordon (ankle) Aston Villa vs Newcastle United prediction Newcastle United's Alexander Isak-sized hole in the attack isn't made smaller by the lack of options to fill his spot. Callum Wilson left for West Ham and well-rated William Osula is still green. Anthony Gordon could be deployed there, but the question mark is too big if Villa deliver a multi-goal day. Newcastle's midfield is still quite solid, but the simplest outcome is something along the lines of Aston Villa 1-0 Newcastle United.
