Factors Contributing to Bankruptcy Amongst Retired Professional Soccer Players
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COPYRIGHT AND CITATION CONSIDERATIONS FOR THIS THESIS/ DISSERTATION o Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. o NonCommercial — You may not use the material for commercial purposes. o ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original. How to cite this thesis Surname, Initial(s). (2012). Title of the thesis or dissertation (Doctoral Thesis / Master’s Dissertation). Johannesburg: University of Johannesburg. Available from: http://hdl.handle.net/102000/0002 (Accessed: 22 August 2017). FACTORS CONTRIBUTING TO BANKRUPTCY AMONGST RETIRED PROFESSIONAL SOCCER PLAYERS BY BRADLEY TAAIBOSCH MINOR DISSERTATION SUBMITTED IN FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE MAGISTER COMMERCII IN BUSINESS MANAGEMENT AT THE COLLEGE OF BUSINESS ECONOMICS UNIVERSITY OF JOHANNESBURG SUPERVISOR: PROF. EDWIN BBENKELE 2019 0 ACKNOWLEDGEMENTS I would like to take this opportunity to thank some very important people without whose support I would not have completed this research endeavour. Our Lord and Saviour Jesus Christ, for blessing me with the opportunity and ability to carry out this research. My wife Shari, mom Noleen, dad Glen, sister Jordan, brothers Emmet-Lee and Bohlale and grandmother Miriam. You have been a constant source of encouragement and motivation. Thank you for all your patience, motivation and support. My mother- and father-in-law, aunty Denise and uncle Donovan and my sister-in- law Ashlee. Thank you for always believing in me and giving me hope when I was disheartened. Prof. Bbenkele, my supervisor, for your exceptional guidance, knowledge and patience. I am incredibly thankful for the extensive amount of time you took out of your busy schedule to accommodate me. DECLARATION I certify that the minor dissertation/dissertation/thesis submitted by me for the degree Master’s of Commerce (Business Management) at the University of Johannesburg is my independent work and has not been submitted by me for a degree at another university. _____Bradley Taaibosch_________ i ABSTRACT In South Africa, the salaries of professional soccer players have increased to a level where players can remain in the country and still become financially wealthy as opposed to the 1990s and early 2000s where players would have to play in various leagues across the world to earn these types of salaries. However, there are challenges in how professional soccer players in South Africa manage their finances. Many of them face bankruptcy after they retire from playing. Literature has shown a high number of reported cases of bankruptcy among retired professional soccer players globally. This research sought to understand the factors that contributes to professional soccer players in South Africa going bankrupt after they retire from their soccer careers. The research approach entailed conducting semi-structured interviews with current and retired soccer players. This dilemma does not seem to confront other sports codes. Cricket and rugby professional sport participants from South Africa were also interviewed with the aim of understanding why they have a significantly reduced number of reported bankruptcy cases of sports professionals after retirement. This study considered four main themes in an attempt to achieve its research objectives ii CONTENTS Acknowledgements ..................................................................................................................................... i Declaration ................................................................................................................................................... i Abstract ........................................................................................................................................................ ii List of Figures ............................................................................................................................................. v List of Tables .............................................................................................................................................. vi 1 Chapter One: Introduction ................................................................................................................. 1 1.1 Introduction .................................................................................................................................. 1 1.2 Definition of Terms ..................................................................................................................... 2 1.3 Background/Rationale ............................................................................................................... 3 1.4 Preliminary Literature Review .................................................................................................. 6 1.5 Research Problem and Objectives ........................................................................................ 10 1.6 Research Methodology ........................................................................................................... 11 1.6.1 Population Size ................................................................................................................. 12 1.6.2 Sample Selection.............................................................................................................. 13 1.6.3 Methods and Data Collection ......................................................................................... 14 1.6.4 Data Analysis .................................................................................................................... 14 1.7 Study Outline ............................................................................................................................. 15 2 Chapter Two: Literature Review .................................................................................................... 16 2.1 Introduction ................................................................................................................................ 16 2.2 Characteristics of a Professional Sports Participant’s Career ........................................... 18 2.3 Causes of Bankruptcy Among Retired Professional Sport Participants .......................... 23 2.3.1 Professional Athletes Living Beyond their Means ....................................................... 24 2.3.2 The Misperception that Wealth is Tangible .................................................................. 25 2.3.3 The Lack of Formal Education Qualifications .............................................................. 27 2.3.4 Trusting the Wrong People ............................................................................................. 28 2.3.5 Domestic Matters.............................................................................................................. 30 2.4 Existing Programmes in Support of Professional Athletes ................................................ 31 2.5 Conclusion ................................................................................................................................. 36 3 Chapter Three: Research Methodology ........................................................................................ 38 3.1 Introduction ................................................................................................................................ 38 3.2 Research Philosophy ............................................................................................................... 38 iii 3.3 Theory Development ............................................................................................................... 41 3.4 Research Design ...................................................................................................................... 41 3.4.1 Methodological Choice .................................................................................................... 41 3.4.2 Research Strategies ........................................................................................................ 43 3.4.3 Time Horizon ..................................................................................................................... 45 3.5 Techniques and Procedure for Data Collection and Analysis ........................................... 45 3.5.1 Sampling Framework ....................................................................................................... 45 3.5.2 Data Collection and Analysis .......................................................................................... 50 3.5.3 Research Limitations ....................................................................................................... 56 3.6 Ethical Considerations ............................................................................................................. 57 3.7 Conclusion ................................................................................................................................. 58 4 Chapter Four - Research Findings and Discussion .................................................................... 60 4.1 Introduction ................................................................................................................................ 60 4.2 Demographics Of The Participants .......................................................................................