Page 38 - Zenith 12호

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Not only us, but also our parents and grandparents
have watched the success of sports stars who represent
their generation. Ironically, however, we hear from
time to time about those who have accumulated a lot

of wealth collapsing financially after retirement. The
economic failure of sports stars who once enjoyed
priceless glory is caused by their inner circumstances, mostly by a simple but powerful
psychological effect.
It is called the "Lake Wobegon Effect." The Lake Wobegon effect is the human tendency
to overestimate one's achievements and capabilities in relation to others. It is named for
the fictional town of Lake Wobegon from the radio series A Prairie Home Companion,
where, according to Garrison Keillor, "all the children are above average".
Many successful sports stars have this tendency. Professional athletes who showed

outstanding performance in their sports show it more strongly. Professional athletes
who achieved more than their peers in sports often think they have above average
abilities even in other areas based on their confidence in sports, and this tendency can
have a negative impact on financial issues. These psychological errors can explain why
players who have gained a lot of wealth in the professional sports field go bankrupt after
retirement.
An example of a domestic player is Park Jong-pal. Park Jong-pal, who was once

wealthy with tens of millions of dollars as a boxing world champion, failed to run a bar,
to manage a sports center, and ended up betraying his acquaintances. After the incident,
Park said, "I think I thought about business would be easy because I succeeded as an
athlete."
The case of foreign countries is also based on the effect of Lake Wobegon, however
the reason why some athletes go bankrupt after retirement is a little different. There is
a culture called “Homie culture” among many poorer people especially in slums or
ghetto areas. Homie culture is a practice where "when one person succeeds outside a
community that he or she has lived with since childhood, the successful one must feed

the rest of the family." In a way it looks like a positive practice. However, since they are
financially helping not only family members but also their friends, no matter how much
money an individual has accumulated, financial problems will eventually arise.