Listen and subscribe to Opening Bid on Apple Podcasts, Spotify, Amazon Music, YouTube, or wherever you find your favorite podcasts.
When it comes to saving a buck, there are legends, and then there is NFL great Chad “Ochocinco” Johnson, who lived in the team facility for two years before being busted.
“I was very financially conscious and didn’t care,” he told Yahoo Finance Executive Editor Brian Sozzi on the Opening Bid podcast during the Cannes Lions festival (see video above; listen below).
Johnson played for 10 seasons as a wide receiver with the Cincinnati Bengals and for one season with the New England Patriots. In 2001, he signed on to the Bengals for $3.09 million, and in 2007, he signed a $34.85 million six-year extension. Johnson was frugal from the get-go as he sought to not go broke like many of his fellow celebrity sports stars.
“I don’t come from much,” he said. “Went to college, bounced around from school to school, and I [got] to an NFL stadium. I finally [got] drafted. My childhood dream finally [came] true.”
For many athletes, managing money can prove challenging.
ProFootball Network reports that the average annual salary of an NFL player is $2.8 million. Yet a Sports Illustrated article revealed that in 2009, 78% of NFL athletes faced bankruptcy or other financial stress around two years into their retirements.
Former player Chad “Ochocinco” Johnson looks on during the second quarter between the Washington Commanders and the Cincinnati Bengals at Paycor Stadium on September 23, 2024, in Cincinnati, Ohio. (Dylan Buell/Getty Images) · Dylan Buell via Getty Images
Within 12 years of retirement, one in six were expected to go bankrupt, according to the article. Culprits included a lack of financial literacy, bad investments, lifestyle creep, and paying for things that don’t ultimately serve a greater financial good, such as an entourage.
Now-infamous examples of athletes getting themselves into financial hot water include former wide receiver Andre Rison of the Cleveland Browns, who went broke despite nearly $20 million in earnings, and former quarterback Michael Vick, who played for the Atlanta Falcons and ended up with prison time for a dogfighting scandal. Vick declared bankruptcy and managed to somewhat extricate himself from the scandal by playing with teams such as the Jets and Steelers.
The phenomenon isn’t new, either. Johnny Unitas, who had a storied career as a quarterback, retired in 1991. Unitas invested $3.5 million in a tech company that was thought to be promising and instead went belly up. Unitas had to declare bankruptcy as a result.
When Johnson was drafted, he took up a real estate agent’s offer and toured several impressive potential homes. But they didn’t meet his expectations. “I think to myself, there’s really no point,” he said. “This really makes no sense.”
Story Continues
What made better sense for Johnson was staying in the stadium facility. “They have everything I need there: showers, cafeteria, players’ lounge.”
His secret couldn’t last forever, though.
After two years, “[head coach] Marvin Lewis came in and realized, ‘Well, how the hell are you always here first,’” he said. By that time, Johnson was headed for his third NFL season, and Lewis had some advice. “He said, ‘It’s time to be a man. You’re grown. You have responsibilities,’” said Johnson, who then got his own place.
Johnson’s legacy includes telling upstarts, “There’s no need to show off. Whoever you’re trying to impress, they’ve already googled how much you make,” he said. “The value is in your name.”
Three times each week, Yahoo Finance Executive Editor Brian Sozzi fields insight-filled conversations and chats with the biggest names in business and markets on Opening Bid. You can find more episodes on our video hub or watch on your preferred streaming service.
Grace Williams is a writer for Yahoo Finance.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance