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Rags to Riches- Athletes need a proper Financial Team
Going from an unpaid college athlete to the professional ranks can make them go from rags to riches overnight. If an athlete does not manage all of that money properly, he could be back to rags very quickly, regardless of any multi-year million dollar contract.
They need certain things in place to make the financial transition to the highly lucrative professional ranks.
Between them and their parents they need to put together a team of four experts, those four being an agent, an accountant, a financial advisor and a lawyer. Each specializes in their own profession.
In the past, most athletes just assumed that all they needed was an agent and that he would take care of everything for them. It is not in an athlete’s best interest to have one person handle everything. Lawyers are not who you should trust with your financial future and vice versa, a financial planner is not the best at contract negotiations.
When athletes attempt to manage their financial affairs without the right representation, or not listening to them when they do have a team assembled, things can go very wrong quickly.
What usually happens is that everyone and their grandmother comes out of the woodwork, and tells the player how to use his money. They buy their parents a house, pick up a car or three, buy expensive gifts for friends, and splurge more then ever before.
Athletes need to realize that their careers are not going to last forever and to make wise investments so that they have a nice nest egg once their careers as a professional athlete is over.
The NBA and NFL have rookie camps that try to educate new players about money management. The leagues also are realizing the importance of having their player’s select competent accountants, agents, financial advisors and lawyers.
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Not too sure how I found this blog but glad I did find it. Think I was looking for something else on yahoo. Not sure I agree 100% with what you say, but have bookmaked and will come back to read to see if you add any more posts. Good blog