One could say that 2008 was tough on many people especially on those who were exposed and over-leveraged, but when talking about pro athletes it is a whole new ballgame. Some of them have made not just a few millions, but close to or over $100 million. They might have invested in some bad restaurants, real estate deals or apparel companies, but are usually not overcommitted in private equity deals/start-ups. Shady advisors and bad habits are a curse to the pro leagues.
When I read the following articles I was saddened, but also embarrassed by what we stand for as a whole. We have many quality pro players who have a huge impact on their communities, but the lost opportunities we see in the cases described is appalling. Just imagine what the proper counsel and direction could have meant for not just the individual player and family but also for the entourage or the hanger-on.
Like most athletes who are totally consumed by the sport I did not pay as much attention in my playing days as I would now after working in the financial sector for almost 10 years. As a player you trust your advisors and don't want to be bothered with financial matters you might not understand anyway. The key is to find proper counsel and that is a challenge in this unreal culture of recruitment and presentation. The shady advisors/agents outnumber the solid firms and the NBA and Player Union are not doing enough to monitor the player management sector. But that is obviously only one part of the problem. Education is necessary to guide the players to a life style which they can hopefully maintain for the rest of their lives.
We at Coldstream have our thoughts on this issue – what are yours?
http://www.businessinsider.com/10-ways-sports-stars-destroy-their-finances-2009-9
http://sports.yahoo.com/nba/blog/ball_dont_lie/post/Former-Celtics-star-Antoine-Walker-is-broke-and-?urn=nba,198509
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