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Money Smart Athlete Blog

The aim of the Money Smart Athlete Blog is to provide athletes worldwide with the tools to become money smart and help them make savvy financial decisions. We created this blog to transmit and share the knowledge we have accumulated as financial and business advisors during the past two decades.

Editorials

December 2021 Editorial: Sports Betting and Athletes

Betting or gambling is one of the oldest social activities of civilization. Gambling preceded history and record-keeping. The betting industry has been growing for decades. It was assisted by the digital revolution which rendered betting as easy as writing a text message and it was further boosted by the legislative changes in the US three years ago. Several market researchers believe that the market will experience meteoric rise over the next few years, with the size of the industry rising well over $100bn.

Betting industry

Athletes, match fixing and illegal betting

Evidence of sports betting can be found as early as the beginning of competitive sports in Ancient Greece, Egypt and Rome. Today, growing digital infrastructure and an ever-increasing number of sports events have allowed sports betting to expand to a multi-billion industry. Any person, in any corner of the world, with access to a device connected to the internet can bet on the outcome of a variety of events taking place during a sports event.

Special Themes

Athletes turned real estate professionals

In earlier articles, we discussed professional athletes’ unique traits and characteristics, and how those can be used to develop athletes into successful businesspeople and entrepreneurs. While such characteristics align with what you would expect from a financially successful individual, it’s clear that not all athletes succeed in their business dealings, while others take off by exploiting their traits and how they align with the competitive and fast-paced nature of certain industries. Specifically, in this article, we will explore how professional athletes’ characteristics align with the world of real estate and further discover those individuals who succeeded in the field of real estate after their professional careers.

Special Themes

Athletes gifting property to family: Know the legal traps

 Gifts between members of the same family are quite common. In its simplest form, gifting, is the transfer of wealth and/or assets from one individual to another. Athlete examples include Kevin Durant, Tiger Woods and Anthony Walker. It is alleged that Dwayne Wade bought his mum a church; yes, an actual church.

Financial Literacy, Special Themes

Athletes: How to get acquainted and benefit from the Real Estate market

Former US president (1933-1945) Franklin D. Roosevelt (FDR) said ‘real estate cannot be lost or stolen, nor can it be carried away. Purchased with common sense, paid for in full, and managed with reasonable care, it is about the safest investment in the world’. This statement is frequently recast and repackaged by people familiar with real estate. This article gives a brief overview of the real estate world in order to point out how it might be beneficial to athletes and how this line of investment might be ideal for them in terms of securing their long-term financial well-being.

Athlete Career and Life Plan, Special Themes

Are real estate investments a good idea for athletes?

The process of setting up a financial plan, requires athletes to decide, ideally with the help of a trusted financial advisor, how their hard-earned money can be invested to generate even more money. While saving money can protect athletes’ wealth and should be the first priority in any financial plan, investing allows them to beat inflation and exponentially grow their money.

Editorials

November 2021 Editorial: Athletes and Real Estate Investments

Athletes are encouraged to plan for their future early on. The short duration of sport careers in combination with the high earnings, deems early and efficient financial planning a necessity for athletes. A huge part of that is saving and then investing those savings in places that would hopefully guarantee athletes a healthy cash flow in their lives post-retirement.

Athlete Career and Life Plan, Special Themes

Athletes – The time to plan your future is now

A famous Chinese proverb reads “the best time to plant a tree was 20 years ago; the second-best time is now”. Time is you ally in achieving any goal, so the earlier you start planning, the better. This is especially true for athletes, who, as previously discussed, have short term sports careers and must have a post-retirement plan in place in order to transition as smoothly as possible into their new lives.

Special Themes

How Athletes Can Build Multiple Revenue Channels

Over the past two years, we have all been tasked with navigating unchartered territories, due to the outbreak of the Covid-19 pandemic. A catastrophe of unparalleled proportion, which nevertheless, left us with a lot of lessons that should be considered, as we try to shift towards the post-Covid era. As stated in previous articles, professional athletes have been amongst the hardest hit by this pandemic, not necessarily in monetary terms, but in terms of seeing their status quo being challenged. Athletes have to rethink the way they approach their financial well-being and have to recalibrate their strategy towards financial freedom. In this article, we seek to explore how athletes should plan ahead, learning from the lessons of the Covid-19 era, to emerge financially stronger and more independent. Specifically, we will focus on why the pandemic has made the case for the need of multiple revenue streams, and how such streams can be pursued by professional athletes.

Financial Literacy, Special Themes

What can athletes learn from the pandemic

There is no doubt that the COVID-19 pandemic has had a profound negative impact on all the stakeholders of the sports industry, as the response of the majority of national and international decision-makers to the outbreak was the shutting down of sport competitions at all levels, including the Olympics. Professional and amateur athletes, sports organizations and sports-related companies and their employees, all had to face their own share of financial distress.

Editorials

October 2021 Editorial: Athletes planning for the future in the post-Covid era

The novel coronavirus – Covid-19 – broke into our lives almost two years ago and altered every aspect of our reality. Offices moved online, sporting events lost their magic and human interaction changed fundamentally. We can only hope that we are briskly taking back control of our lives with the increasing rate of vaccination and the gradual washing away of the virus itself.

Special Themes

The financial cost of covid-19 on European Football

Sports was and is one of the hardest-hit industries by the pandemic, due to the fact that it relies on live action and interaction, momentum and the gathering of large crowds in stadia and other venues. The outbreak of the virus was like Armageddon for sports which saw most of its revenue streams temporarily blocked and stadia closed indefinitely, while clubs still had to pay the enormous salaries to their athletes. For athletes of individual sports, the situation was even grimmer. The Tokyo Olympics and the Euro championship were not spared either.

Special Themes

Athletes and bad investments

"Financial literacy" has become a very a popular term these days. It basically refers to having the right set of skills and knowledge that allows an individual to make informed and effective decisions with all of their personal financial resources. Specifically, it is about spending within your means, investing wisely and saving for emergencies. Although these “rules” sound simple, many people find it hard to adhere to them, especially athletes.

Building and Maintaining a Financial Plan, Financial Literacy

Athletes: How should your income affect your investment choices

Last week we explored the concept of Risk Appetite and its three basic descriptive categories: risk-averse, risk-seeking and risk neutral. Understanding your Risk Appetite or Risk Tolerance is one of the major factors that you have to take into account when creating your investment plan. The second important factor relates to your income; these two concepts are closely intertwined.

Financial Literacy, Risk Management

Athlete-Investors: Understand your Risk Appetite

When psychologists and sociologists study deviant behavior they tend to focus on socioeconomic backgrounds, conditioning and environmental and structural factors. Economists on the other hand, for right or wrong, have come up with a different perspective: risk-appetite. They argue that people commit crimes as rational beings weighing risk against gain. In the case of criminals, prison sentence against loot. The rational response to risk is not necessarily to avoid it at any cost but to take it into account in your decision making. Risk appetite refers to the amount of risk that an individual or organization is able and/or willing to accept in pursuit of certain objectives. There are three basic categories of risk appetite: risk-averse, risk-neutral and risk-seeking. Every single individual has their own risk appetite, including athletes.

Financial Literacy, Special Themes

The Best Athlete Investors

Despite being well paid, many professional athletes are looking for alternative sources of income to grow their wealth. To this end, they often use their sports earnings to invest in various ventures and projects. Most investments are usually made after retirement; however, we have a number of cases where athletes begin investing way before they retire.  The rationale behind athletes’ investments is the creation of alternative sources of revenue which can potentially lead to the creation and accumulation of wealth. 

Financial Literacy, Special Themes

Athletes and Investments: Keep an eye out for market trends

The significance of creating a financial plan that can eventually guide athletes to financial freedom, has been reiterated in a number of articles, here on the Money Smart Athlete Blog. Being able to choose wisely when, where and how to invest money, in order for them to grow, is a very critical component of a financial plan which can help athletes meet both their short and long-term goals they set.

Editorials

September 2021 Editorial: Off the Pitch: Athletes and Investments

Investing is one of the key ways that athletes can achieve the financial goals they have set in their financial and life plan.  Through investing athletes can make their money work for them and take charge of their financial security by growing their wealth and by generating additional income streams to support their desired lifestyle.

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