By Niovie Constantinou, Contributor
A sports career brings uncertainty. That’s why being proactive is key to long-term financial stability. In the past, most athletes entered business after retirement. Many failed to manage their income well and ended up bankrupt—Diego Maradona and Mike Tyson are examples.
Today, the trend is changing. Athletes now enter the business world while still active. LeBron James is one example. He owns a minority stake in Liverpool FC and invested $1 million in Blaze Pizza. His small stake in Beats by Dr. Dre earned $30 million when Apple acquired it in 2014.
Sports careers can be short. Injuries can end them suddenly. That’s why many athletes start their own businesses early. Lonzo Ball, a 19-year-old rookie, skipped a big shoe deal to launch his own brand. He believed it would bring better returns over time.
Young athletes today focus on maximizing income early. Lonzo Ball’s story shows they should start even younger. It’s vital to understand the risks in sports and to build alternative career paths early. As a young athlete, you should:
Explore your interests: Choose an industry or business that suits you. Use your skills and knowledge. Take relevant courses. Research your options. Gain the experience and credentials you’ll need. A career consultant can guide you.
Diversify your income: Your business doesn’t have to be sports-related. You could become a coach, start a sports magazine, or invest in technology or restaurants. Don’t rely on one source of income.
Create a financial plan: Know how you’ll fund your business. Talk to financial advisors. Get help with managing investments and securing long-term returns.
Use your personal brand: While at your peak, connect with fans through media and live events. Promote your business using your public profile. Ask contacts for help with marketing, financing, or growth. No one can promote your business better than you.
For more information and direction when pursuing a business parallel to your sports career, you may get in touch with us at [email protected]