Michelle Hill explains how athletes can avoid The Cycle of post-playing-career financial ruin, with advice that applies to us all.
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So much for the horror stories of athletes making millions, then going broke within a handful of years after their career ends.
We read the tragic tales of woe, shake our heads and think, “How could that happen?” “Man, if that were me, I’d be set for life.”
But, before we judge too harshly, consider the lottery winners who have met a similar fate. Same Cycle – different cast and storyline: Top Ramen to Filet Mignon and then back to Top Ramen. For some, that’s the only way they know how to live.
Can You Relate to This Cycle?
There is never just one factor that leads to the Cycle. Most often it’s a combination of poor financial decisions, lack of prudent planning, aligning with unscrupulous individuals, ongoing medical issues, and remaining frozen in inactivity rather than taking action to empower one’s self.
This Cycle doesn’t apply exclusively to athletes; it can happen to anyone who refuses to take charge of their destiny. Every person has the potential to build their own empire and while a hefty paycheck certainly does help, it’s all about taking massive action every day in the decisions you make and how you choose to educate and empower yourself.
Below are a few examples of athletes who continue to build empires. Your empire doesn’t have to amount to millions or billions – it can start by being a champion husband, father, son, brother, uncle, employee, employer, or entrepreneur.
Puffy Paychecks Can Build Empires
Plenty of former pro athletes have built empires with their puffy paychecks. These empires don’t strike back – they just keep on gaining strength and beefy bottom lines.
Let’s see.
Roger Staubach became a real estate mogul in his post-NFL career.
Vernon Davis operates a successful interior design company and also owns two successful Jamba Juice franchises in San Francisco.
Michael Jordan, according to Forbes, in 2015 became the first athlete in history to reach billionaire status.
And, of course, there’s Shaq, who owns a real estate company, The O’Neal Group, as well as investments in Vitamin Water and Muscle Milk.
This empire-building list wouldn’t be complete without mentioning Magic Johnson whose net worth is over $500 million.
This galaxy isn’t far, far away. It’s real. It’s true. It’s inspiring. It’s now.
Educating and Motivating Pro Athletes toward Financial Freedom
Granted, the examples above are extreme. The average former pro athlete will not reach that pinnacle, but he can still escape post-sports career deprivation and attain financial freedom.
Brandon Williams, former wide receiver for the Pittsburgh Steelers, has made it his mission to equip and empower current and former athletes with the knowledge and tools essential for financial success. In Brandon’s soon-to-be-released book, Millionaire Mindset, 7 Principles Athletes Need for Financial Freedom, he candidly shares his own journey from earning (and spending) a hefty paycheck to struggling for enough to pay basic monthly expenses.
Brandon’s story represents thousands of others who share the same storyline of the broke-rich-broke syndrome. Fortunately, Brandon busted out of that syndrome and created his own empire.
Perhaps the young athlete needs to seriously contemplate the bigger, long-term picture even more than signing a contract in the Not For Long league. Former athletes have a responsibility; no, an obligation, to educate and motivate younger athletes who have dollar signs shining in their pupils, and a corrupt band of followers with palms up and arms extended with, “gimmee, gimmee” on their minds. The smart athletes will surround themselves with a wise team of advisors who will help pave the way toward creating post-sports career wealth and success.
So, there IS hope, Obi-Wan. Amidst the rubble of broke and bankrupt athletes, emerge empires built by smart athletes who gather their financial dream team, make prudent decisions while keeping a solid grasp of the big picture in clear view.
Ok, so when will you bust out of your current situation and lead the charge to build and strengthen your own empire?
Leadership is all about legacy and influence. What kind of legacy are you leaving? How are you influencing those around you?
Until you’re gone, there’s always time to regroup, restore, and regain your territory.
It’s worth fighting for.
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Photo Credit: Gordon Tarpley/Flick creative commons
The post The Empire That Doesn’t Strike Back – Athletes and Post-Career Wealth appeared first on The Good Men Project.