Many professional athletes are financially distressed within 5 years of retirement. Why?
When we strip off the layers of athlete management we have come to realize that athletes go broke, not only because of toxic spending, but also unnecessary risky investments & professional fees.
The very second an athlete becomes draft worthy, they are approached by handlers promising that they will take care of everything. The truth is that many handlers are putting that athletes financial future at risk, for their own payday. They often sell access to the athlete to the highest bidder, not necessarily the organization that has the best products, lowest risk and smaller fees for the athletes.
Their entire career athletes hire professionals to handle their business. These professionals charge fees and often, put an athletes hard earned income at considerable risk. A nickel here, a dime there, a bad investment here, a bad investment there, adds up to most athletes ending up in financial dire straits.
Let me explain how the bleeding starts.
Pre draft loans, or any loan that leverages an athletes future pay is very risky. Even if the loan is protected by an insurance policy. These loans are often predatory and have considerably high rates and fees. We’ve seen many loss of value claims go into dispute and while the athlete is paying for legal council, there is no income and the bills start to pile up and the financial spiral is inevitable. A simple default can trigger outlandish rates. Let me ask you, wouldn’t it be better for the athlete if the athlete was their own bank and the insurance brokerage?
The agent negotiates a fantastic signing bonus, but the athletes pay a fee to the agent after uncle sam and the state takes their portion. They lose over half of their money! Would it be better for the athlete to have their contract structured so the bonus money could be leveraged to scale the athletes brand before taxes are taken out and not have to pay an agent fee on that money? Would it be even better if the athlete owned the agency that represents them?
The first purchase is often a house and the athlete is subject to realtor fees and mortgage rates. Real estate investments are also often in an athletes portfolio. Once again, I ask you, would it be better for the athlete if they owned the real estate brokerage?
Next, the financial managers come and take the remaining money and invest it in the stock market and other financial fund engines. They give a percentage of the athletes money to more risky, venture seeking, business owners or the athlete will start their own businesses. I believe the statistics show that over 70% of new businesses fail within the first 5 years. With a majority of athletes going broke, why would anyone put any money at risk? Let me ask you, would it be better if the athlete owned the financial brokerage and had investors giving the athlete their money, instead of the other way around?
I know what you are thinking. Sure it sounds great, but only the top paid athletes will have the ability to own so many businesses and no one can manage that much business. That is not true. Our system works for almost every professional athlete, active or retired. We leave no athlete behind.
Let me ask you, if there was a company that provided the business creation and all the back office services to provide the athlete with multiple, scalable businesses that offered better products and services at the same or better prices to their fans, family and community, would you be interested in learning more? 360 Sports offers legal, accounting, marketing, advisement and much more- at no cost! We don’t charge a fee, rather we are equity partners.
We assist with the capital raise to launch the business, so the athlete does not risk any of their money. 360 Sports agency offers professional athletes our ‘athlete accelerator’ unprecedented and unparalleled business and branding opportunity. Each athlete is majority share holder and the principal of their own family office style business and earn a paycheck based on yield to cover their lifestyle expenses. A portion of the capital raise can also be used to help fund an athletes causes.
Our community centered agencies will be staffed by active and ex athletes who have professional licenses. We intend to provide thousands of jobs for retired professional athletes all across the country. Click on the linked words in this post to learn how 360 Sports, Inc. helps protect athletes.