Professional athletes require unique financial planning due to the amount of compensation and timing of the earning career. Athletes, with their families, should create a financial plan that spans the playing career, transition to post-play career and long-term life goals.
Information for educational purposes only.
Kareem: 20 Things I Wish I’d Known When I Was 30
Kareem Abdul-Jabbar, April 30, 2013
“Dude, where’s my money?” is the rallying cry of many ex-athletes who wonder what happened to all the big bucks they earned. Some suffer from unwise investments or crazy spending, and others from not paying close attention. I was part of the didn’t-pay-attention group. I chose my financial manager, who I later discovered had no financial training, because a number of other athletes I knew were using him. That’s typical athlete mentality in that we’re used to trusting each other as a team, so we extend that trust to those associated with teammates. Consequently, I neglected to investigate his background or what qualified him to be a financial manager. He placed us in some real estate investments that went belly up and I came close to losing some serious coin. Hey, Kareem at 30: learn about finances and stay on top of where your money is at all times. As the saying goes, “Trust, but verify.”
Johnson Says There’s No “Magic” to Business Success
Tiffany Black, March 18, 2011, Inc.
Johnson: “When you are a successful business person, you are only as good as your team. No one can do every deal alone.”
Q: You have multiple businesses and you are the personality or spokesperson for so many of them, how do you manage it all?
Johnson: “Again, it’s putting together a great executive team and great people who work to manage the businesses. That’s No. 1. No. 2, I do very few deals. I turn down more deals than I actually do. They have to be the right deals. They have to be the right corporations.”
Johnson: “Make sure that you don’t have a ‘good’ staff or a ‘good’ management team, but a great one.”
“Hannah Arendt, a postwar philosopher, once said that the most dangerous thing in the world is to be rich and weak. Wealth can only be protected by strength, as unlike the poor, the wealthy are envied and have things others want, and unlike the strong they are subject to power. My father used to say that the richest man in the world couldn’t survive a cheap bullet. The same is true of nations. Wealth without strength is an invitation to disaster.”
-George Friedman, Flashpoints: The Emerging Crisis in Europe
A NFL player’s net income is front-loaded while expenses continue for the rest of their lives. To transition smoothly to your second career, work out a saving and spending plan.