On Friday the 17th of May I attended the informative Nedbank Finance Football Forum in Durban at ViewsAt25 ahead of the Nedbank Cup Final where TS Galaxy beat Kaizer Chiefs, becoming the first lower division team to win The Nedbank Cup. The panel at this groundbreaking event included football legends Doctor Khumalo, Jerry Sikhosane, Siboniso Gaxa, Siyabonga Nomvethe, Nedbank KeYona graduate and flag-bearer Aubrey Modiba, Bongani Sam as well as Financial Expert, Peter Kgapane and Tobie Badenhorst, Head: Group Sponsorships and Cause Marketing.
We have seen a lot of footballers going broke after retirement with nothing to fall back on.
Financial expert, Peter Kgapabe figures it’s because in football retirement comes earlier than in any other profession.
“When the playing days are over, even if the player had savings. They end up being forced to tap in to the their savings accounts to make ends meet,” Kgapane said.
He says the player will use that money until it runs out and then by the time they reach 65 which is the normal retirement age, they no longer have any money left on their accounts.
“Football hasn’t always been a business. Most retired players from the older generation never earned a lot of money and they never even got a chance to play overseas, at least the newer generation has more chances of playing abroad,” he added.
“Wealth can be generational and unfortunately for most South African footballers, they’re the first in their families to accumulate wealth. They haven’t had financial education from a very young age so when the money comes they seek validation by buying expensive cars, clothes or even live in expensive apartments,” Kgapane added.
According to the expert, people who come from wealth lead better lives because they were taught from a very young age how to make and save money. They usually have mentors who teach them about life skills and give them financial education.
“Football academies across the country should add financial education to their curriculums where they teach young football players how to save money. You do not have accidental encounter with money training, someone needs to teach you how to handle your finances from a very young age,” he added.
Kgapane believes it is harder to give financial training to a player who’s already earning a decent salary.
“We stand a better chance at training the younger ones instead of trying to teach someone who’s already making a lot of money. This becomes difficult because they never got used to saving money when they were young and saving may include downgrading their lifestyle,” he concluded.