For the 2021 NFL season, professional footballers will be paid for 36 weeks, a longer period than they have been paid in recent years – 17 weeks – according to the ESPN report.
So does this new payroll structure provide athletes with financial benefits?
Sean Packard, CPA of OFS Wealth in McLean, Va., Who works with professional athletes including NFL players, says some people will have to worry less about budgeting their money. .
“My immediate thoughts were: good for the players,” Packard told MarketWatch. “With their payout during the season, you’re going to have to spend all that money.”
Carlos Dias Jr., founder of MVP Wealth in Orlando, Fla., Agrees. “It’s a positive thing for people who can’t speed themselves up, because they won’t run out of money.”
But Dias, who provides financial planning services to professional athletes, added, “I see it as both a positive and a negative side.” He said for some athletes, getting more money earlier means having an earlier access to capital that they can use to “invest and settle debt” – which can be difficult. more if the payments are spread over.
Packard agrees with this when it comes to the higher-paid players of the tournament, but points out that the paychecks spread over time will be especially beneficial for NFL players close to reaching the minimum of the league. Tournaments.
“You look at time, value and money – you want money right now. But when you look at the bottom of the pay scale, those are the people who will benefit the most, ”said Packard. “Sometimes you’ll find at the end of the season they are going to spend a lot of money and not have a budget on everything else.”
Ultimately, it’s most important to teach high-income athletes the importance of budgeting and saving, Dias said.
“If you want to change that mentality, it doesn’t matter if you get paid 17 weeks a year, 36 weeks a year – or 52,” he says.