Athletes and Investments - Yet Another Cautionary Tale
You're a professional athlete, so everyone wants your money, right? Even savvy athletes and coaches looking for presumably safe investments can find themselves in dire straits over an investment gone wrong. That's why it can be critical to consult a competent attorney before signing anything involving your money.
Consider the case of Michigan football coach Rich Rodriguez, who invested in condo construction near college campuses as part of a new trend to sell college-themed living to the aging baby boomers. Sounds like a solid investment opportunity for an athlete, right? Well, not so fast. As discussed here, the investment at Virginia Tech's stadium did not go according to plan. A partner allegedly made off with much of the funds, and the investment fell apart.
What really made this a bad investment for Rodriguez is that he was personally sued by the creditors when the deal fell apart. Everyone knew that Rodriguez was a millionaire (coach and athlete salaries are generally public information), but Rodriguez's mistake may have been the "personal guarantee" he signed, apparently putting himself on the hook for the debt.
The bottom line is that if you're a pro athlete, you make a lot of money. You have every right to invest your money in lucrative projects that are not available to most people. Just be wary - and consult a qualified sports attorney to see that your interests are protected.
