Athlete Wealth Podcast

Last time, we discussed how to find a sports agent who has the expertise and experience for your situation that can advocate for you in contract negotiations and representation. 

This week, we continue the conversation to help you finish building out a trusted team that can help you navigate the biggest financial decision of your life by finding the right financial team for you.

As an athlete, you would take the time to research and find the best medical professional to help you deal with an injury. You should do the same when it comes to managing your wealth. To do that well, it’s important to understand some basic concepts of the financial advisor world to be able to take responsibility in this decision and own your wealth.

During this episode, we discuss topics and questions such as:

• What are the unique issues a draft family will face from a financial perspective?
• When should you begin searching for your financial team?
• What are the biggest financial mistakes draft families make?
• What is the difference between a financial advisor and a certified financial planner? What is the difference between a broker/dealer and a registered investment advisor?
• How can you ensure that the team you’re hiring has the experience and expertise to handle your wealth?
• What beyond investing should your financial team help to manage?
• What are the key questions you should ask while searching for a team to handle your wealth?

Listen to episode 4 for answers to these questions and more.

How confident are you that you chose the right agent?

In a $10 billion industry, it brings a host of characters that want a piece of your business. It can be difficult to know who are the people that have the expertise and the experience to help you.

Too often, the only advice you receive is to do your due diligence. But that assumes you know what questions to ask, which is largely untrue. So what ends up happening is families are trying to do the best they can, but end up asking the wrong questions, and when you ask the wrong questions, you're going to get an answer, it's just the wrong answer.

In this podcast, we provide a framework and the right questions to ask when choosing your sports agent.

• What are the needs a player has?
• Who is qualified to meet those needs?
• What are the three types of employees of an agency that the MLBPA regulates?
• Is an agent worth paying 4-5% commission on your signing bonus?
• Can your agent get your drafted higher?

Download this show's free resource ("Questions to ask a potential sports agent") HERE

Should you sign a professional contract or head to campus?

This is the decision every high school or college player with eligibility will make this upcoming June. This looming decision will have a dramatic impact on the trajectory of your baseball career and life. How prepared and confident are you that you would make the right decision?

Many factors should be considered when deciding to sign a professional contract; however, for the majority of players, it’s a question of money.

The question the industry is asking is, “What’s Your Number?”

The reality is: everyone has a different “number,” and there is a lot of work that should go into it.

This will be the most significant financial decision of your life. How much you sign for, the taxes you pay, and what you do with that money will have enormous consequences.

So how much is enough?

In episode two, we breakdown the process of what it takes to determine your number. We believe if you follow the process we layout, you can have a lot of confidence going into draft day. Regardless of where you end up being selected, you will have a definitive path to make the decision that is right for you.

In this episode, we breakdown the incredible opportunity an amateur player has to become a professional baseball player. We detail what's the probability, the career trajectory, and pathway to navigate the MLB Draft process successfully.

It's hard to encapsulate the excitement surrounding the upcoming MLB Draft. Years of hard work, sacrifice, and dedication all point to this one day. Becoming a pro.

It's a rare opportunity to realize a childhood dream, but equally as important, it's an opportunity to change your financial future. With one announcement from the podium, players will move from asking their parents for lunch money to becoming one of America’s wealthiest.

In last year's draft:

• $316 million paid to draftees
• $128 million of that was on the first 34 picks
• 71 players signed for $1 million or more
• Only two players drafted in the top 10 rounds did not sign
• 73% of the first-round draft picks play in the major leagues according to Baseball America

Baseball is a game. Professional baseball is a business.

You are now responsible for thinking about your career from a business standpoint and you're going to be forced to make decisions, whether you make them well or not, they will have a significant impact on your current and your future life.

Episode one is the starting point for making the right decision.

Jon Condo, my former teammate and 15-year NFL veteran, now real estate agent joins to talk real estate. With real estate prices notching up to record price increases, and an unhealthy supply of homes for sale, Jon answers common questions for NFL Players. 

As NFL players focused on growing our net worth and creating generational wealth, real estate is a solid part of that equation. We also get a chance to share our own real estate stories and where NFL players can get tripped up.

We also talk about the consistency necessary to last 15 years in the NFL in an unforgivable position of long snapper. You cannot redeem yourself from mistakes, and must be perfect for 10-15 snaps a game. Jon shares what shaped his commitment to professionalism and performance.

If any NFL players have real estate questions, reach out to Jon Condo directly at: [email protected] or me at: [email protected].

Episode Highlights

• How Jon took a disciplined approach and his path to becoming a long snapper, playing for 15 seasons.
• Condo’s transition to his career after football and what helped him along the way.
• We discuss doing what you’re good at and can consistently win at is a recipe for success in a career after the NFL. Taking care of your business and growing your Net Worth allows for flexibility and freedom to pursue what you are passionate about post-NFL.
• We talk about mailbox money and that doesn’t just mean real estate. Jon shares some of his experiences investing in real estate early in his NFL career and what he has taken from it.
• As a young NFL Player should you buy or rent? Is rent wasted money? 
• Credit score and what impact does it have on getting a mortgage to buy a home.
• When renting out your home, know your downside, risks, and opportunity cost.
• Real estate tax Planning including 1031 exchanges, Section 121 exclusions. Click on the links for more details but the tl;dr is you can avoid taxes or kick the can down the road with some of these strategies. Seek out qualified professionals like us at AWM Capital for specific advice here.
• Always have an exit strategy to realize your profits. This might seem obvious but many people don’t have a plan in real estate investing. 
• What maximizes residential real estate value? What improvements actually can add to the value of the home. 
• Can you time the market in real estate?
• Where does real estate belong in your Net Worth stack?
• My free link for checking Mortgage Rates: http://www.mortgagenewsdaily.com/mortgage_rates/

Grant Haley of the New Orleans Saints joins me this week to talk Venture Capital investing from the viewpoint of an active player. Grant was in the latest class of the Next Play Venture Fellowship with me and is also finishing his MBA while competing his ass off in the New Orleans Saints offseason program. 

He is doing what so many NFL players miss - including myself when I was playing - in taking advantage of the absurd amount of resources available to active players. Many of these resources amount to free money and easy networking. We cover what his biggest takeaways from the NPC Fellowship were, and what he has learned grinding it out in the NFL. 

NFL Players are entering a new phase of #athleteand, of which Grant is a prime example.  

EPISODE HIGHLIGHTS

• Venture investing from the investing side and also from the entrepreneurs side. There is a process to greatness in this space just as there is in football. The Tom Brady of venture capitalists has the process to be able to repeat the winning over and over.
• Why I constantly say the term “own your wealth” and why you are doing a disservice to yourself to not be informed.
• If you think a good financial advisor is a stock picker then you're misinformed, and you should demand better. Certified Financial Planners with real expertise for your situation is what actually is valuable to you.
• Before making any investment you must answer the why of making that investment. Is there a priority you are targeting? Investing is more than just buying stocks. To actually create value, all factors of your financial life should be taken into consideration. 
• Your team matters in football, and it’s no different for your financial team. Specialization at corner, tight end, or running back applies in exactly the same way to investing, tax, and planning experts. 

Athletes are taken advantage of most often when it comes to making private investments. So many of my teammates ended up with bad advice, poor returns, or even losing all of their money in bad private deals. 

It pays to know what you’re doing if you’re interested in getting into the private side of finance.

That’s why this week, I’m joined by Akbar Gbajabiamila to discuss Venture Capital investing.

Akbar is an NFL veteran of the Raiders, Dolphins and Chargers, current host of American Ninja Warrior and NFL Fantasy Live, and he wrote the book Everyone Can Be a Ninja. Akbar is a true example of #morethananathlete, and has achieved continued exceptional success after his already successful football career.

Akbar and I met through the Next Play Capital Venture Fellowship, a two week event that takes a cohort of current and former professional athletes on a crash course of how the best venture capital investors approach investing, and gives perspective on what it takes to build a successful company.

Episode Highlights 

• Our takeaways from completing the Next Play Capital Venture Fellowship
• Access is what matters in venture capital returns, top firms continue to win year in and year out
• Akbar’s venture startup mask idea created during COVID so fans could attend sporting events
• As an entrepreneur it isn’t just about money but the strategic partnership and team you pick to help guide you as a growing company.
• Conflicts of Interest in financial advice and why independent advisors align incentives of the advisor and player
• How to invest like a professional outside of Venture Capital and how to pick a financial team that adds real value
• Akbar talks about his recent crypto trading and the FOMO, fear of missing out, so many guys get caught up in
• Akbar’s advice for active players and using their status to create a strong network: “your network is your net worth” as he says

In this episode, we’re joined by Brandon Copeland (@bcope51), linebacker for the @atlantafalcons and about to enter his 8th @NFL season, Ivy League professor of Life 101 at @uofpenn, @Forbes 30 Under 30, and established leader in the #morethananathlete movement. Brandon and I discuss what we have learned during our NFL careers about money, investing, and football - including the mistakes we’ve made along the way. 

Brandon and I both have a similar focus of helping to build financial freedom for all NFL players, and as we discuss throughout the episode, the pillars of personal wealth (net worth, human capital, investing, annual spending, after-tax returns) do not have to be over-complicated by Wall Street. Similar to football, keeping it simple is the best strategy.

NFL Players can’t afford to learn at the rate of their own experience; we must learn faster and channel our competitive drive to eliminate the unnecessary money mistakes every NFL Player will make.

Topics:

• The story of how Life 101 started and what Brandon teaches in the offseason at his alma mater University of Pennsylvania.https://www.life101.io/
• Discussing money and how the educational system really drops the ball, not just for athletes but for everyone.
• Not being afraid to learn and ask questions especially when it comes to money.
• Getting the right experts on your team matters. You cannot be an expert at everything.
• Money is just a tool to be used for financial freedom, whether that is to provide for the people you care about, or to make the impact you desire during your life.
• Treating yourself like a business, and not letting your entourage ruin that business
• Brandon’s biggest piece of advice for the newly drafted Rookies (Also check out Kiplinger.com/cope)
• Vet and demand the best from your advisors, financial advisers & agents. Don’t just rely.
• Being competitive about spending money is a game you won’t win.
• How to operate as an NFL Player to retain your wealth, mentally create the right mindset to not fall into this trap
• Brandon tells his experience day trading options and his maturity as an investor during his investing career and generational investing.
• Brandon brings up the concept of delayed gratification and being patient when it comes to investing.
• How Brandon approaches his real estate investments and the constant learning required to become an expert in the space.
• Tax strategy is often ignored or poorly implemented for NFL Players resulting in less money in the pockets of players.
• Biggest mistakes as a player when it comes to wealth: including not knowing your net worth, savings rate, and annual spending after tax returns matter and human capital must be common.
• Brandon’s grandfather, NFL Player & Super Bowl Champion advice he gave to Brandon when he was younger

What should your financial game plan be after you retire from the NFL?

The truth is that tax planning isn’t over when you retire - the game is actually just beginning. There are still plenty of opportunities as a retired player for you to keep more of the money you earned if you take the right steps. A solid tax strategy saves money. Just filing your taxes does not.

In this week’s episode, I scratch the surface on the topics below, but if you want more details then download my Post Career Tax Game Plan through the form below.

Key Highlights

• (00:06) After-tax return is what matters
• (3:58) Roth Conversions Strategy
• (3:13) Backdoor Roth IRA Strategy
• (5:15) NFL Pension + Annuity Plan + CAP Plan + 401(k) Plan Optimization
• (7:38) Donor-Advised Funds saves on taxes and increase impact of giving
• (8:22) Leveraging Post-NFL income with all the above

Listen as I explore the 3 tax planning opportunities I personally missed and continue to see NFL and MLB athletes missing every year. This is money that should be in your pocket that you are missing out on.

1. The Jock Tax - Every time you visit another state to play a game, you pay state and local taxes according to however your team calculates payroll. The problem is they sometimes ignore training camp, minicamp, injured reserve and possibly cost you a lot in taxes. Recalculating your “duty days” can save a ton of money throughout your career.         
2. Individual 401k - Deferring your endorsement income (think trading card deals, appearances, endorsements) can save up to $22,800 every year for NFL Players. This adds up over a career.
3. Roth IRAs - I go into detail how much my advisors cost me by missing non-deductible Roth Conversion strategies. Missing this simple strategy is evidence of just plain bad tax planning.

Go check your financial accounts and if you don’t have a Roth IRA account and Individual 401k account, you are getting poor tax planning from your advisors. Time to move on and get a team that can actually allow you to keep more money in your pocket.

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