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Rags to Riches- Athletes need a proper Financial Team

Updated on May 25, 2010

Going from an unpaid college athlete to the professional ranks can make them go from rags to riches overnight. If that person does not manage all of that money properly, he could be back to rags very quickly, regardless of any multi-year million dollar contract.

But what do they need to do to make the financial transition to the highly lucrative professional ranks?

What they need to do is put together a team of four experts, those four being an agent, an accountant, a financial advisor and a lawyer.

In the past, most athletes just assumed that all they needed was an agent and that he would take care of everything for him.

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 in a hurry.

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.

We have to make sure they understand they have to set up a stable blend of stocks and bonds."

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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