Sports Agents and Financial Advisors for Athletes
Here comes another story of professional athletes who were bilked out of their hard-earned money. Several players on the Columbus Blue Jackets recently spoke to a reporter about the instances in which they were swindled.
As always, the article is just another cautionary tale which has at its root the fundamental problem of who an athlete can, and cannot, trust. This is why we here at Sports Agent and Sports Lawyer Blog continually emphasize the theme that athletes need to employ risk managers, someone who can assess and analyze each and every investment opportunity and explain the pros and cons to the athlete. This person should be an attorney, but not necessarily be the athlete's personal counsel, and should not be the athlete's financial adviser.
It's easy for the athlete to be seduced when approached by an inventor or entrepreneur who promises to give the player a share in the Next Big Thing. There is no doubt that occasionally, some people do have solid ideas and the athlete could actually benefit from making an investment. More often than not, the opposite is probably true. We have written several times about athletes and their financial problems. Even having a professional financial adviser is not always sufficient:
Most athletes have a financial adviser, but the people serving in that capacity vary widely.Several Blue Jackets said they allow relatives or family friends to manage their money. Other players are represented by large sports agencies that handle all their financial matters, including bill and mortgage payment.
It's a subject that will never go away until athletes get smarter about their overall risk-taking strategy. People essentially need to allocate only a fraction of their overall disposable income to high-risk ventures. Then they need to figure out the best way to maximize that percentage. Blue Jackets player Rick Nash has the best approach. His lawyer, agent, financial adviser and accountant are all unrelated to one another. This ensures that there are greater checks and balances.
