Unfortunately, the retirement experience for many former footballers has been a terrible one. In the sports media, cases have been reported where once-wealthy players have become bankrupt after retiring. Former Black Stars players Sammy Adjei and John Naawu are notable examples. Joe Odoi, Prince Addu Poku, Amusa Gbadamoshie, and Prince Addu Poku are also noteworthy.
According to academics, this unfortunate situation is due in part to the high risk of falling into a void. Football, like many sports, imparts skills that are difficult to transfer into non-sporting careers. Football is also a very competitive field. Most footballers have a very high salary during their jobs and are faced with a lot of uncertainty when they retire.
Reports have also highlighted the lifestyle of footballers, both during their active playing time and after retirement. This is a major factor in the financial mess some footballers are in.
There have been reports of footballers who engage in irresponsible behaviors financially. Gambling, extravagant parties, and spending on luxury brands are all examples of unsustainable and expensive lifestyles. This type of financial behavior is often associated with a lack of economic understanding.
I am a Professor in Accounting who, along with others, conducted a Study on the financial literacy level of professional footballers from Ghana to determine its impact on financial behavior and wellbeing.
Footballers exhibited poor financial behavior and low financial literacy. To promote responsible economic behavior among footballers, it is important to improve their financial literacy. The argument that saving and investing behavior is the key to financial wellness was very well supported.
The design of the study
Financial literacy is the ability to manage financial resources to enhance future welfare effectively.
Financial behavior can be defined as “the ability to regulate planning and budgeting, checking management, controlling, managing, searching, and storing of daily funds.” This includes spending and savings habits, borrowing patterns, and budgeting.
We surveyed 300 players who will compete in the 2020 Ghana Premier League using questionnaires.
The questionnaire was divided into two sections. One section covered demographic information about the respondents, and the second focused on their financial literacy.
The Ghana Premier League currently has 18 clubs registered. At the time the study was conducted, these clubs had 480 registered players. Ghanaian clubs have a very small net worth compared to clubs in Europe, England, and Asia, as well as many other parts of Africa. Over the years, Ghanaian clubs have had very little revenue from international transfers. In its 2021 report on international transfers, the Federation of International Football Associations reported that Ghanaian clubs had a combined net profit of US$50,000,000 in the past decade.
Footballers’ finances
Our study showed that footballers were a young population. Nearly 90% of footballers were under 30 years old, similar to other countries. It is not surprising that footballers are most active during their prime years. Around 86% of respondents had completed some level of education. This was mostly at the senior high school. Nearly 58% of respondents had at least three dependents in addition to their nuclear family. Most footballers provide for their families, even though 39% of them live with friends or parents. These footballers earn an average of GHS2,000 (US$177) per month, which is low compared to the incomes of other professionals.
We found that footballers generally had low levels of financial literacy. The footballers ranked the setting of long-term objectives as high, but they showed little interest in gaining financial knowledge. So, it was not surprising that many footballers were unsure about how their money was being spent.
In general, we found that footballers did not display responsible financial behavior. Few footballers showed any interest in financial products like bonds, stocks, and mutual funds. They were diligent when comparing prices for a service or product in a store.
It is interesting to note that footballers are optimistic about their financial wellbeing. The majority of respondents were confident that they could meet their current financial requirements and had a positive outlook for their future needs. They also made decisions to live life to the fullest. Footballers are always hoping to secure lucrative contracts in the future.
