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Professional Athletes, Child Support and Financial Strain: What the Evidence Shows

Evidence of athlete financial strain is not evidence that family size causes it. Here is what an NFL bankruptcy study, a Canadian survey and one child-support case actually show.
From TheFinanceBase Team4 min to read

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There is no evidence here that professional athletes with more children are generally unable to afford them—or that having more children causes bankruptcy. The available sources document financial pressure in specific athlete populations and one former NBA player’s child-support case, but none measures whether family size predicts financial distress.

Does having more children make an athlete more likely to go broke?

That connection has not been established by the evidence available. The population-level studies discussed below examine bankruptcy among a historical group of NFL players and finances among surveyed Canadian high-performance athletes. Neither analyzes outcomes by number of children. A separate federal prosecution account describes one former NBA player’s support case; it does not show that his family size caused his financial or legal problems.

It is therefore more accurate to ask what is known about athletes’ finances after their careers and to treat individual child-support cases as just that: individual cases.

What the NFL bankruptcy study found

Carlson, Kim, Lusardi and Camerer’s 2015 paper, Bankruptcy Rates among NFL Players with Short-Lived Income Spikes, studied bankruptcy filings among players drafted by NFL teams from 1996 through 2003. The American Economic Association’s abstract says filings began soon after players stopped playing and continued at a high rate through at least the first 12 years of retirement. It also reports that “Players’ total earnings and career lengths have surprisingly little effect on the risk of bankruptcy.”

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The study is about a defined historical NFL cohort, not athletes across sports or eras. Its abstract does not provide a bankruptcy percentage, and the study does not establish that children or child-support obligations predict bankruptcy. It should not be used to claim that a fixed share of former athletes go broke.

Sources: American Economic Association paper abstract and National Bureau of Economic Research paper record.

What a Canadian athlete survey says about financial pressure

Canadian Heritage’s 2024 report on the 2023 Status of the High-Performance Athlete reports figures for its Canadian high-performance athlete respondents. For 2022, average annual income was C$34,945 and average annual expenses were C$39,528—an average gap of C$4,583, or about C$382 per month. The report also says 14% reported repayable debt incurred to pursue their athletic career.

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These are survey findings for high-performance athletes in Canada, not a representative measure of professional athletes generally. The income and expense figures are averages, not a household budget or a measure of whether a particular athlete can support children. The report does not break results down by family size. Respondents also relied on support including Sport Canada’s Athlete Assistance Program, family, and provincial or territorial assistance; that context differs from professional-league compensation.

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The same report gives earlier comparison figures for the share reporting repayable career-related debt: 18% in 2019, 20% in 2014, 24% in 2009, and 45% in 2004. These are survey results for the report’s population and should not be read as rates for all professional athletes.

Source: Canadian Heritage / Library and Archives Canada, 2023 Status of the High-Performance Athlete – Final Report.

What the Kenneth Ray Williams child-support case shows

A 2013 U.S. Department of Justice account describes a case involving former NBA player Kenneth Ray Williams. According to the agency, a support award was amended in 1995 to include his third child, and Williams was ordered to pay $3,750 per month for the three children. After his conviction for willful failure to pay child support, he was ordered to pay $661,277 in restitution.

Those figures belong to this individual case. They do not establish how common child-support enforcement cases are among athletes, what support typically costs, or whether the number of children caused Williams’s nonpayment.

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Source: U.S. Department of Justice, Eastern District of North Carolina, 2013 case account.

What happens to child support if an athlete’s income falls?

The sources here do not establish how a former athlete’s support payments would change when income drops. That depends on the applicable jurisdiction and the details of an individual order; the cited case account does not explain a general modification rule. Anyone facing a significant income change should seek advice about the existing order and local procedures rather than assume payments adjust automatically.

For U.S. bankruptcy proceedings, the Government Accountability Office reported in 2008 that federal law requires a bankruptcy trustee to notify the relevant custodial parent and state child-support enforcement agency when a parent with support obligations files for bankruptcy. This describes a U.S. process, not a rule for other countries or legal advice about an individual case.

Source: U.S. Government Accountability Office, Bankruptcy and Child Support Enforcement (2008).

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Why a short playing career can make financial planning difficult

The NFL study’s finding that earnings and career length had surprisingly little effect on bankruptcy risk underscores that a large income during a playing career does not, by itself, guarantee lasting financial security. A career’s duration, the transition out of sport, spending, debt, and the athlete’s individual circumstances all matter; the cited study does not isolate family size as a cause.

FIBA says its Athletes’ Financial Handbook addresses budgeting, financial goals, estimating net worth, overspending, choosing trusted advisers, investing, and planning beyond playing days. FIBA’s stated principle is that “Being aware of one’s own situation and planning ahead are vital steps in securing a solid financial future and ensuring a prosperous career.” The handbook is an example of an athlete-focused planning resource, not evidence that any particular service is suitable for a given person.

Source: FIBA, Athletes’ Financial Handbook announcement.

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