Of conniving shylocks, gullible runners and wasted life earnings

As much as the local athletics federation has covered a lot of ground in improving financial literacy among our athletes,  it appears that the problem is  still with us.

Athletics Kenya (AK) has held seminars across the country to sensitise runners on proper investment of their earnings, anti-doping controls and proper time management.

On Friday, AK sent out a passionate plea to local runners to invest their earnings wisely, and to stop borrowing money from shylocks to sustain their exorbitant lifestyles.

For the second year running, coronavirus pandemic has disrupted sporting activities globally, denying runners the opportunity to earn income through competitions. Major athletics championships and city marathons have either been cancelled or postponed in view of Covid-19, and it appears local athletes who are in lockdown have been borrowing huge sums of money from opportunistic lenders to sustain their expensive lifestyles.

AK is concerned that the athletes are not only spending the money from loan “as if there is no tomorrow,” but the federation is also concerned that the athletes lack the know-how to interpret the terms and conditions written in fine print, and so the shylocks are having a field day auctioning property owned by the athletes in record time.

Our earnings at the prime of our lives should make us comfortable later in life, and deep in retirement.

For athletes and artistes at the prime of their high-flying careers, the expectation is even higher. As one goes through his or her career, one is expected to put aside some money for a rainy day, and to invest for life in retirement. Earnings in form of salary, product endorsements, sponsorships and other financial benefits should be split up proportionately and directed to various uses.

According to the 50/30/20 rule of thumb which is a guide for budgeting for one’s income, it is recommended that we spend no more than 50 percent of our net income on needs, 30 percent on wants and 20 percent on savings. As some of our athletes have learnt, this is easier said than done.

But there are many examples of athletes who squandered their wealth that our runners can learn from.
From the former undisputed boxing heavyweight champion Mike Tyson, American athlete Marion Jones,  Paul Gascoigne who is widely regarded the most naturally talented English footballer of his generation, to former Manchester United and Northern Ireland football legend George Best, many hitherto jet set sportsmen and women have lost life’s earnings and found themselves living in squalor partly due to making poor investment decisions or none at all, and the desire for quick success that drove them to use shortcuts like doping.

Paul Gascoigne, famously known as “Gazza” had a glittering career with England national football team, finishing fourth in the 1990 Fifa World Cup, and 1996 European football championship. He played for a number of English and Spanish top-flight clubs,  notably Tottenham Hotspur,  Everton, Middlesbrough and Lazio, but in retirement, his life was characterised by severe mental and emotional problems, alcoholism, and was jailed on numerous occasions. He later became addicted to gambling and spent all his money on the vice.

George Best became extremely rich but his extravagant lifestyle led him to alcoholism, controversies and bankruptcy.

“I spent lots of money on booze, birds (women) and fast cars. The rest I just squandered,” he said of how he spent his money.

At the age of 20, Tyson became the youngest boxer to win the World Boxing Council, World Boxing Federation and International Boxing Federation titles. A reckless spender, he fell bankrupt in 2003. His wealth was estimated at USD 400 million (roughly Sh43.12 billion by today’s exchange rate).

Marion Jones who won three gold medals (100m and 200m sprint, and 4x400m relay) and two bronze medals (long jump and 4x100m relay) at the 2000 Olympic Games in Sydney was brought back down to earth after Victor Conte, an American who founded a sports nutrition centre in California, confessed on national TV that he had personally given Jones four different illegal performance-enhancing drugs before, during, and after the 2000 Sydney Games. In 2007, she pleaded guilty to use of steroids, was stripped of her titles before being jailed.

These athletes once had everything tied up in one neat bundle before making a single miscalculation, then everything fell apart.

Whoever coined the phrase “a fool and his money are soon parted” may have had sportsmen in mind.
Because there are many examples to learn from, our athletes need not go through the experience themselves. 

They need not be so foolish as to spend their money too quickly, and on unimportant things so as to learn their own lessons. They can learn it from others before them. And they must ensure they are happy in real life, not just on social media.