Podcast Summary: Outta Pocket with RG3

Episode: The REAL Reason Why So Many Athletes Go Broke Like Mike Tyson and Allen Iverson
Hosts: Robert Griffin III (RG3) & Grete Griffin
Special Guest: PJ Good Demi (Wealth & Mindset Educator)
Date: October 20, 2025

Episode Overview

This episode dives deep into the financial pitfalls that lead many athletes—citing cases like Mike Tyson, Allen Iverson, and Antonio Brown—to go broke, despite earning millions. RG3 and Grete Griffin, joined by special guest and wealth educator PJ Good Demi, unpack the real reasons behind athlete bankruptcies, focus on issues like identity, environment, and the difference between having money and being wealthy. The conversation offers actionable advice for current and future athletes navigating newfound wealth, emphasizing delayed gratification, carefully chosen advisors, and cultivating financial self-awareness.

Key Discussion Points & Insights

1. Outrageous Athlete Spending: Mike Tyson as a Case Study

• [01:25] Co-hosts outline Mike Tyson's lavish lifestyle: a $2.3M gold-plated bathtub, tigers costing up to $200K/year, a $400M fortune "burned through" by entourage and bad management.
• Insight: Athletes often feel compelled to “buy into” a new financial world overnight, with no gradual adaptation.

Quote

“Just because you have the money doesn’t mean you belong in that world. But they try to buy into that world and it gets very expensive because they’re doing it too fast.”
— PJ Good Demi [03:26]

2. Why Athletes Go Broke: Three Core Reasons

• [02:28] PJ Good Demi identifies three main culprits:
  • Lifestyle management: Overspending to match new social circles.
  • Taxes: Not realizing how much of their contract goes to the IRS.
  • Bad advice: Entering the “$50 million world” without training in managing smaller sums.
• [04:10] Key mistake: Getting a suite of advisors immediately, instead of a tax advisor to set realistic expectations about net income.

Quote

“The first thing they should talk about is, let me give you a tax advisor first. Before we even talk about what to do with your money, let’s talk about how much of that money doesn’t belong to you to begin with.”
— PJ Good Demi [04:11]

3. Identity, Comparison, and the Trap of Sudden Wealth

• [04:49] Rapid wealth often leads athletes to “compete” by spending (multiple luxury cars, expensive jewelry)—falling for comparison rather than financial competence.
• Social media fuels unhealthy spending by showcasing only the extravagant.
• [05:46-06:50] Success stories (e.g., Shaq investing in businesses early) are set apart by self-imposed discipline and focusing on building assets before upgrading lifestyle.

4. Liquidity, Illiquidity, and the Hidden Dangers

• [08:59] Net worth doesn’t equal cash in the bank—many athletes have illiquid assets and don’t monitor or reassess their investments regularly.
• [09:25] Grete shares her own positive experience with enforced tax withholding.

Quote

“You talk about liquidity, everyone’s like, hey, what’s this guy’s net worth? But a lot of them don’t have that level of cash in the bank.”
— Greta Griffin [08:59]

5. Advisors as Double-Edged Swords: Avoiding Leeching

• [10:05] Many athletes come from nothing and are suddenly surrounded by “leeches”—including certain “advisors.”
• [10:24] Key to survival: Delayed gratification, self-education, and always double-checking advice.

Quote

“Just because you got a ton of money does not mean you should spend it … remove the ego, delay gratification, and you insert the double-check clause.”
— PJ Good Demi [10:24]

6. Environment, Entourages, and the Myth of Loyalty

• [15:00] Athletes often try to “buy” loyalty by financially supporting large entourages—spending hundreds of thousands monthly.
• These moves are often attempts to find identity and appreciation, but lead to financial bleed.

Quote

“I think they were buying loyalty, friendship and appreciation and attention.”
— Greta Griffin [15:23]

7. The Deep Psychology: Identity, Environment, and Value

• [17:29-20:05] PJ introduces his “Third Circle Theory”:
  • Awareness: Control of environment
  • Self-awareness: Creation of identity
  • Consciousness: Control of time
• Having money becomes the athlete’s identity; true self-worth isn’t developed.
• Advise: Friendships and relationships require a balanced exchange of value; once you stop giving, opportunists tend to disappear on their own.

Quote

“Your identity becomes the money. That’s why they feel this responsibility, because everything they have becomes their identity.”
— PJ Good Demi [17:29]

8. Dangers of Returning to Toxic Environments

• [22:50] When athletes return “home” with money, they become targets—jealousy and guilt-tripping are common.
• The environment that once supported them may now expose them to risk and resentment.

9. The Social Media Factor: Vanity Over Asset Building

• [25:00] The internet amplifies pressure to display extravagant lifestyles, distorting the reality of wealth and fueling unsustainable expectations.
• Story: Marshawn Lynch only spent off-field money, not his NFL contract.

Quote

“If I don’t have a G wagon, I’m nothing … If I don’t buy my mom this, then I’m nothing.”
— Greta Griffin [32:31]

10. Navigating Advisors and Building Real Wealth

• [28:38] Not every “expert” is real; athletes need to double-check recommendations outside their immediate circle, and pay for independent consultation if necessary.
• Remove vanity for two years post-contract and focus on financial fundamentals.

Quote

“There are people who you can keep separate from the deal to review deals … keep 90% of your money, you’ll slip 10%.”
— PJ Good Demi [29:19]

11. Concrete Advice for New and College-Age Athletes

• [34:24] Advice for rising stars like Caleb Williams, Shadur Sanders, Caitlyn Clark:
  • Delay gratification for at least a year.
  • Put 50% of contract income aside for taxes.
  • Limit big purchases to two wealth-parking items (car, watch).
  • Only live off what your investments cash flow; preserve principal.
  • Build credit and seek advisors from the world of wealth, not just sports.

Quote

“Delay the gratification. Don’t look at what other people around you in your team are doing … take a moment, stop. Take one year between signing a contract and trying to compete with other people on the team.”
— PJ Good Demi [35:20]

Notable Quotes & Memorable Moments

• On Why Athletes Overspend:
  “When you’re poor and you get rich fast … you haven’t trained yourself to compete, you’ve trained yourself to compare.”
  — PJ Good Demi [04:49]

• On Advisor Transparency:
  “Don’t double dip on me … my transaction fees are 30% and the average human’s are 5%. Why am I leaning out 25%?”
  — PJ Good Demi [14:04]

• On Handling Old Friends and Guilt:
  “You don’t even have to talk to them. You just have to ignore them, they go away on their own.”
  — PJ Good Demi [20:13]

• On Family Expectations:
  “They don’t get to choose the terms. … They can get help, but you should also support your own ambitions.”
  — PJ Good Demi [32:56]

Section Timestamps

• Opening & Introduction: [00:00–01:18]
• Mike Tyson & Athlete Excess: [01:25–02:28]
• Why Athletes Go Broke—Main Reasons: [02:28–04:49]
• Mindset & Social Pressure: [04:49–06:50]
• Liquidity, Tax, and Advisory Issues: [08:59–09:56]
• Delayed Gratification & Advisor Pitfalls: [10:04–12:14]
• Environment, Loyalty, and Identity: [15:00–20:05]
• Handling Old Friends, Guilt, Return to Toxic Environments: [20:05–23:28]
• Social Media & Vanity: [25:00–32:18]
• Advice for New Athletes: [34:24–39:24]
• Closing Thoughts & Takeaways: [39:27–end]

Final Takeaways

• Sudden wealth without preparation nearly always leads to disaster—manage yourself, your environment, and your advisors proactively.
• Delayed gratification, independent double-checks on financial guidance, and learning to say “no” are crucial skills for preserving wealth.
• True wealth is about maintaining and building upon your principal, not just showing off your income.
• Athletes should focus on “playing the real game of life, not the filtered game of the athlete in the wealth game.” [35:20]
• Invest in self-awareness and remember: “You don’t have to be a product of your environment, but you can grow your wealth and still enjoy those nice things—if you do it the right way.”
  — Grete Griffin [39:37]

Highly recommended for athletes, aspiring pros, and anyone navigating sudden financial success.