The thought of professional soccer players probably brings images of fancy cars, big mansions, and million-dollar endorsement deals to mind.
But what happens when the whistle blows, signaling the end of a player’s career?
Do soccer players get to reap the financial benefits of their playing days beyond their retirement date, or do they also go through normal financial difficulties like every other person in retirement?
Now, let’s get down to brass tacks on this multifaceted topic: whether soccer players get paid upon their retirement and how they secure their financial futures.
Understanding a Soccer Player’s Career
The career span for a professional soccer player is very short, around 10 to 15 years for those who make it to the top. While elite players, like Cristiano Ronaldo or Lionel Messi, can still be playing in their late 30s, the average player will be retired in his early to mid-30s.
Meanwhile, the average soccer career lasts only 8 years, one of the shortest professional careers in any field.
For comparison, an average MLS player makes $472,008 per year, while players of English Premier League make way more: 2.13 million pounds for U-23, 3.52 million pounds for 23-29-year-olds, and 3.17 million pounds for those over 30.
Though these figures dwarf many of those fans’ lifetime earnings, they have to be stretched over decades of post-retirement life.
Most soccer players retire at about 35 years of age. By this time, the physical demands of the sport have taken their toll, with most of the players losing that speed, stamina, and agility that once characterized them.
The brevity of a soccer career means that players must maximize their earnings during their active years and plan for life after retirement.
For the creme de la creme, this is not much of a problem. Astronomical salaries, endorsement deals, and business ventures usually guarantee their financial security.
For players in lower leagues or less lucrative markets, planning for retirement is key. Most depend on union support, pension systems, or secondary careers to keep their livelihood going.
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The End of the Salary Stream
For most players, the paycheck stops once the playing career is over. When a soccer player-for whatever reason, age, injury, or personal desire-retires, the contractual relationship with their respective club generally ends.
Here are specific situations and what will occur:
Involuntary Medical Retirement
In the case of retirement due to a career-ending injury or other severe medical condition, compensation may be provided for the rest of a player’s contract.
Other leagues or clubs have insurance to look after their players in such situations.
Severance Packages
Players whose contracts are terminated for reasons other than misconduct often receive severance pay. These are, in essence, financial cushions to cushion the effects of a sudden exit from the sport.
Standard Retirement upon Contract Expiration
Retired players at the natural expiration of their contracts receive benefits including loyalty bonuses and signing-on fees, apart from any outstanding wages owed to them.
However, these payments mean the discontinuation of any direct monetary relationship with the club.
While such financial provisions allow immediate succor, they do not see players through their lives, and so a prudent financial management system would be imperative during their career years.
Stories of Financial Woes
Unfortunately, stories of soccer stars going broke after retirement are all too common. Players like Ronaldinho, Diego Maradona, and Paul Gascoigne serve as cautionary tales.
Expensive lifestyles, poor investments, gambling, and addiction issues have led many to financial ruin. For every player who thrives post-retirement, there are those who struggle to adapt.
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7 Ways Soccer Players Get Paid After Retirement
Fortunately, for most soccer players, their retirement does not spell the end of incoming money. Many who leveraged on their popularity, skills, and networks secured lucrative opportunities in the following areas of:
1. Merchandise Sales and Image Rights
Many soccer superstars even long after they hang up their boots go on earning from merchandise and image rights, as jerseys, memorabilia, and other items with their names never stop selling.
- Jerseys may still be sold with retired players’ names on them by clubs.
- Players get the royalties based on pre-set agreements on those sales.
Apart from this, clubs can also use the images of retired players for promotional activities and provide a certain percentage share of revenues earned.
2. Pension Schemes
Most professional leagues, such as the English Premier League, offer pension schemes to their players. Pensions ensure some cushioning in case the player faces financial problems following retirement.
Some of the features of these schemes include:
- Monthly allowances from a particular age onwards
- Lump sum one-time payments.
These pensions have often been a lifeline for players who have made poor choices and struggled financially.
3. Coaching Careers
The natural transition for many players would be into coaching. The love of the game draws them back onto the pitch, this time as mentors and strategists.
Most of them undertake coaching badges, often during the latter phase of their playing careers in preparation for the transition to management.
- Pep Guardiola – a tactical genius managing Manchester City
- Carlo Ancelotti – multiple-time Champions League winner as coach
- Diego Simeone – leading Atletico Madrid to numerous titles.
- Mikel Arteta – leading Arsenal to UCL after almost 8 years of absence.
While coaching salaries can vary widely, top managers make many millions per year.
4. Club Ambassadorships
Many loyal players later become ambassadors for their previous clubs. During this time, they represent the club in events such as:
- Charity galas.
- Sponsorship activations.
- Governance meetings.
The remunerations might not be as good as what they earned while playing, but they are stable and keep them within the sport.
5. Endorsements and Commercial Partnerships
Some players sign endorsement deals extending into their retirement. For example:
- Cristiano Ronaldo is rumored to have a lifetime deal with Nike.
- David Beckham still makes millions from endorsements with companies like Adidas and H&M.
These can be long-term contracts and thus guarantee a good income after their playing days are over.
6. TV Punditry
Television networks increasingly hire former players as pundits to provide expert analysis. Well-known names like Thierry Henry, Micha Richards, Jamie Carragher, and Gary Neville have transitioned seamlessly into broadcasting roles.
These contracts can be extremely lucrative, with some pundits earning millions annually. Moreover, TV appearances keep players in the public eye, opening doors to other opportunities.
7. Private Businesses
Many retired players venture into entrepreneurship. Examples include:
- Soccer Agencies: Representing current players in contract negotiations.
- Real Estate: Investment in and development of properties.
- Entertainment: Starting production companies or acting careers.
Examples include:
- David Beckham co-owns Inter Miami CF, mixing business with his love of soccer.
- Gerard Piqué has invested in a number of businesses and is very successful in eSports.
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Why Do Some Players Go Broke After Retirement?
Some players go broke after retirement despite earning millions during their playing careers. While most players successfully work out life after football, others face some serious issues:
1. Financial Mismanagement
Perhaps the most common problem is poor financial planning. According to a Professional Footballers’ Association study, many players are badly off financially just a few years after retirement.
Extravagant lifestyles, poor investments, and financial illiteracy contribute to the problem.
2. Identity and Mental Health
To many players, soccer is their identity and not just a mere job. Thus, retirement is symbolic of the loss of such purpose. Retirement has been associated with poor mental health conditions.
Depression and anxiety have been rampant among retired players.
3. No other Skills for Other Careers
Players who feel reluctant about life outside soccer may not easily adapt to another career or job.
As opposed to other professions, playing soccer might not provide all the complementary skills.
4. Health Problems
The physical nature of soccer predisposes individuals to long-term health issues that may inhibit the ability of retired players to seek further employment.
Examples of these are arthritis, chronic pain, and concussion.
Support Mechanisms for Former Players
A number of associations and initiatives have been formed to assist players in easing into retirement, including:
1. Players’ Unions
FIFPro, along with national unions like the PFA, offers advice on financial matters for players, career counseling, and counseling on mental health.
2. Retraining Programs
Many leagues and unions have retraining programs set up that help players develop other skills. For example, the MLS Players Association works with colleges and universities to provide players with coursework.
3. Health and Welfare Programs
Some leagues also offer health benefits for players after retirement. For example, in the United States, MLS provides players with medical coverage for some time after retirement.
4. Charitable Foundations
Foundations like Common Goal encourage players to donate some percentage of their earnings to social causes, thus creating a sense of fulfillment and meaning post-retirement.
Lessons for Aspiring Soccer Players
The experiences of the players facing financial crises remind one of many cautionary tales. Here are the key takeaways for aspiring soccer players:
- Invest wisely: Seek professional advice to build a diversified investment portfolio.
- Plan for retirement: Save diligently and explore pension options early.
- Live modestly: Avoid unnecessary extravagance, even during peak earning years.
- Develop skills: Pursue education or training in fields of interest beyond soccer.
Final Thought
Retirement marks a big turning point for soccer players. While some transition seamlessly into new careers or income streams, others face financial hardships due to poor planning or unforeseen circumstances.
