For many athletes, especially those starting in track and field, the allure of earning money for doing what they love can feel like a dream come true. However, without careful financial planning, that dream can quickly turn into a nightmare. Financial experts often highlight the risk of lifestyle creep, where an athlete’s expenses grow proportionally as their income increases. This can lead to poor financial habits and leave them vulnerable once their earning potential starts to decline, especially when their income is tied to performance and competition.

Despite their extraordinary talent and relentless dedication, athletes are often dependent on their successes to secure their income, which can be uncertain and short-lived. For long-term financial security, athletes need to build strategies that go beyond their immediate earnings, including saving, investing, and planning for the future.

Everything can go away once you get off track

Track and field athletes work incredibly hard to reach the top of their sport, often earning money from a very young age. However, this doesn’t guarantee that they will always have financial stability or the same level of income throughout their careers. As Andrew Brereton and Rodney Green discussed on the Ready Set Go YouTube channel, the reality of finances for track athletes is far more complex.

Green, a Bahamian sprinter, posed a crucial question, “How would you try to make that person understand the financial reality?” Brereton, offering a straightforward answer, replied, “Save your money and reduce your expenses.” This simple advice holds significant weight, especially for athletes whose income may fluctuate based on performance or sponsorship deals. Brereton further explained the financial struggle many face, noting, “Lifestyle creep and not realizing when it’s happening—it’s like driving a car that’s speeding, and you need to slow down.”

He continued, “I try to have the conversation and say, ‘Look, this is what you’re spending, either a month or a year at this stage,’ and emphasize the importance of planning. Athletes must understand that the money they make today isn’t guaranteed for the future, and managing their finances wisely is key to ensuring long-term financial security.”

Financial experts remind us that the habit of spending, which consistently grows as a result of high incomes, ends up with athletes being unprepared for life after sports. Brereton told how he tries to explain everything about their future; he said, “If everything kind of went away tomorrow, you have to make this much outside of track to just live the lifestyle you’re living right now, right?” With no post-career goals, athletes may find themselves struggling to sustain their lifestyle.

For many athletes, the transition from professional sports to post-career life is fraught with uncertainty. The questions like, “Do they have a degree? Did they finish school early? All those things that usually determine, Okay, what are you going to do after you’re running track?” loom large. Without a solid plan, athletes are often left with limited options after their track careers. Things get tough as the side hustle won’t help them to live the life they used to live. And this is especially true for track and field which is a low-income sport as compared to others like the NFL.

Athletes need to have endorsements to earn enough for their future

Track and field is a low-income sport at the initial levels, and athletes fail to make the necessary investments early to prolong their income. Hence, it leads them to financial instability. Do you know that as of 2024, the average salary of the NFL is $2.8 million? Brereton also emphasized, “It’s unlike the NFL from a business standpoint because you don’t join a team and get paid. You can’t just hang on and make it. This is a business, and when the window closes, it’s closed.” What do top athletes have to say about this question of income?

Noah Lyles mentioned on the Paper Route podcast with Brandon Marshall that endorsement deals have been a beam of hope to them and a way to maintain themselves as they devise plans for the coming years. He also said that athletes do not earn much without endorsements. On the other hand, the financial hardships of athletes who lack endorsements have become a very common scenario that points to a flawed system, which is unlike sports like the NFL.

Athletes often make $300k or something during their active sports era, but once they retire or might fall into any injury, their income drops to $60k or $80k with a professional degree, and even less like $40k. It is safe to say that financial planning is mandatory to live an easy life post-career. What are your thoughts about it? Do tell us in the comments below.