Greetings Nick!

THE WEEK OF MARCH 30, 2012

This week’s news boomed with the announcement that the Magic Johnson-led investment group purchased the Los Angeles Dodgers. If you have never read up on the former L.A. Lakers superstar, he will probably go down as the most successful pro athlete-turned-businessman of all time. He was MAGIC on the basketball court (champion in high school, college, NBA, Olympics) and continues applying the Midas touch with his business dealings – Starbucks, Lakers, Movie Theatres and now the Dodgers. No doubt, Magic will polish up the Dodgers’ franchise and turn the Big Blue Brand back to its rightful place in Major league Baseball as one of its cornerstone franchises!

On the flip side, the news came this past week that another former pro athlete joins the long list of others that have lost their career fortunes to a string of bad luck, bad investments, failed marriages, or sometimes just stupidity. Former NBA star Dennis Rodman admitted he has nothing left from a financial standpoint and is facing jail time because of failed child support payments that exceeds over $800,000! Allen Iverson, another ex-NBAer, reportedly blew away his $150-million in career earnings. Some say he lavishly employed a 50-person entourage to handle his affairs while he scored points for the Philadelphia 76ers.

I am not picking on the NBA. Plenty of athletes have committed epic blunders with their career finances including well known MLB Hall of Famers Rollie Fingers and Tony Gwynn. Look at Marion Jones, a three-time Olympic Gold Medalist, who made more than $7 million per year until she was indicted on check fraud and IRS forgery charges in recent years. She eventually lost all of her medals, her reputation and later filed for bankruptcy after serving six months in jail.

According to Sports Illustrated, 78% of just NFL players, have filed for personal bankruptcy after being retired for only two years. 60% of NBA players suffered the same fate. Having been around many pro athletes, it’s always been my belief that players during their early playing years will live a lavish lifestyle based on their peak earnings yet fail to think about the money needed to sustain themselves and their families later in life.

This might seem miniscule, but when I was working with the Washington Capitals, our first round draft pick (Scott Stevens, now a Hall of Famer) was 18-years-old. He was buying thousands in team merchandise for his family at XMAS. He decided to ship it all back to his Canadian home and wrote me his check. When I asked him if he was going to subtract it from his checkbook, he commented “Nah, my agent will figure that all out!”

Regardless of your net worth down the road, you have to play an active role in the management of your financial affairs. Even the best money manager won’t care about your money as much as you do and for that reason, you have to be the final and most important decision maker! Take time now, fellas, whether it’s basic online courses or some in college, on banking and investments. Be smart with your earnings and those you trust to manage it!

Everyone faces the challenges of new-found fame. Look at Tim Tebow and Jeremy Lin. Once their fame rose like a thermostat on a warm sunny day, they were besieged by agents, investment firms, financial advisors and lawyers from all walks of life. You, too, will come upon this shortly in your career, if not now. Just understand the basics of your financial matters and be as smart about your wallet as you will be about exercising your body and your time spent working out on the field.

Know that this piece is not meant to be a downer but the stories you’ve read up above are reasons why you need to protect your future and while you’re young and inching your way up to a possible career in the big leagues, start to understand now how the business side works as well!

MY BEST ALWAYS!

Jim Loria

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ALWAYS REMEMBER THIS SPECIAL QUOTE FELLAS …

BEFORE YOU (by William Arthur Ward)

… Before you speak, listen.
… Before you write, think.
… Before you spend, earn.
… Before you invest, investigate.
… Before you criticize, wait.
… Before you pray, forgive.
… Before you quit, try.
… Before you retire, save.
… Before you die, give.

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“Talent is a GIFT; Character is a CHOICE!” – stated by former NBA Coach Larry Brown

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“Happiness doesn’t depend on what we have, but it does depend on how we feel toward what we have. We can be happy with little and miserable with much”- stated by William Dempster Hoard, the 16th Governor of the state of Wisconsin, 1889


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Jim Loria, Career Planning Expert for Sports Professionals
E-mail address: loria@sfstampede.com