HERES THE ARTICLE: 60% OF NBA PLAYERS BROKE...
This is a very irritating story. I have several friends and associates who play professional sports and unfortunately I have first hand knowledge of athletes who make exorbitant amounts of money and blow it. The fact that the number is so high in the NBA,the sport with the highest paid athletes, is especially troubling. In the debate about whether NBA players should go to College it is very rarely mentioned that an 18 Year Old probably has no clue how to manage money. I understand that circumstances cause some athletes to choose to enter the NBA. However, if you choose that path it also means you must take on the responsibilities of a mature adult faster. One of the things every mature adult needs to take responsibility for is their finances. I care about this issue because the majority of players in the NBA are African American and we have to stop this cycle. If we don't care about ourselves no one else will! Here are a few tips off the top of my head for all of you athletes.
1.) Become an active participant in your financial situation from day one. If you have a financial adviser make sure you earn their respect early on by getting involved and taking it seriously. If they respect you they are far less likely to take advantage of you. Also don't make yourself believe you are incapable of learning money management.
Finally, take your time and pick the right financial adviser. Don't immediately go with the guy your agent pushes you towards. Often times there are finder's fee agreements between agents and financial advising companies and they are not making a decision in your best interests but theirs.
2.) Develop a good relationship with your accountant and make sure he knows your overseeing your spending. The article mentions some accountants charging players $100,000 just to prepare their taxes. Don't get hustled!
3.) Develop a plan for what your going to do off the court and for when you retire.Every career calls for retirement planning. As an athlete you may feel your invincible but one injury can end your career. Also your actual career is much shorter than most. You have many more years of retirement to plan for than the average citizen. Make sure you invest and also find something your passionate about to transition your talents into. You do not want to be bored out of your mind do you?
4.) Develop relationships that add value, not ones that diminish value. People see athletes as easy prey to be exploited. These people include agents, girls, business advisers, car dealers, jewelers, and even family. You have the right to say no and make sure that you exercise this right. If people know that you aren't a push over than they won't try to take advantage of you.
5.) Save more Money than you Spend!!!
Thursday, February 21, 2008