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.
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.
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.
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.
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.
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.
Constantinos Massonos, Contributor Social justice is an essential building block for the development of a society. It represents the view that every person who is part of a society deserves equal rights, equal opportunities and equal treatment. Its importance was...
In the past couple of years or so, there has been a rise in debates regarding the conduct of athletes outside the field. One aspect of that debate is concerned with how charitable or engaged athletes are with their immediate and wider communities, their political beliefs and their willingness to take a stand for what is right – which is more often than not harder than most people would admit to determine. At the same time, the rise of social media has given athletes a platform to advertise themselves, broadcast their philanthropic side and speak out on what matters to them. It seems however, that athletes are increasingly targeted by the public not only when they say something that people disagree with, but also when they don’t say anything at all.
Sense of duty, respect for fellow human beings, morality, and discipline are what create a socially responsible person. Social responsibility concerns individuals when it is exercised by a single person, while it becomes collective when it pertains to groups of people such as companies or sports teams. The popularity that athletes enjoy due to their status as public figures gives them the opportunity to influence the behaviour of many of their fans through public announcements and various forms of promotional activities.
Many well-established athletes never thought they could have a wealthy future because of their socioeconomic backgrounds. The examples are numerous: Pele, LeBron James, Novak Djokovic, Christiano Ronaldo, and the list goes on. The sudden wealth experienced by a number of athletes has turned into a positive experience for their communities as well. These athletes have used their newfound wealth not only to support themselves and their families, but also have used part of this wealth to give back and help their communities.
Sports have become one of the most popular global activities, attracting the attention of millions of people. This growth is producing more and more powerful social icons that have considerable influence on society.
Athletes often put their bodies through rigorous training and expose themselves to many physical risks; at the same time though, they seem to neglect their mental health and stability. Mental illness is often overlooked by coaches, teachers, and parents of athletes as well. It is difficult for people to understand that the brain is just as important as the body when it comes to being a healthy athlete. This article will explore how mental health issues in athletes are just as important as physical injuries.
The ancients used to say ‘a healthy mind in a healthy body’ and I think many people can get behind that. The relationship between mental health and physical health intuitively seems obvious. For starters, during and immediately after exercise, the human brain releases endorphins, chemicals such as serotonin and dopamine that literally make us feel good. So, it would make sense that regular good exercise can help stay away from mood disorders and maintain a healthy mental state. But what about athletes?
On the MSA blog last week we discussed the recent events involving Naomi Osaka, her mental health and her decision to withdraw from the French Open. Mental health has long been overlooked in sports and in certain cases even repressed. Mental health issues and illnesses do not fit in the yes-can-do, celebratory and electrifying environment that characterizes sports. However, athletes are constantly under the spotlight, working hard week in and week out on the pitch, while trying to keep in touch with their fans and show their philanthropic face outside of it.
Winner of 28 Olympic medals, swimmer Michael Phelps is one of a number of star athletes who has publicly discussed in recent years his struggle with depression, anxiety and suicidal thoughts. NBA star basketball player DeMar DeRozan has also talked about the importance of addressing mental health issues, as all athletes are first of all humans. Gymnast Aly Raisman has described her efforts to cope with post-traumatic stress disorder after being the victim of sexual abuse.
The challenges in the lives of athletes are many; their wellbeing is impacted by their situation both on and off the field, while injuries, mental and physical pressures are a natural by-product of competing at a high level. The psychological stressors experienced by athletes put a lot of strain in their mental state and they can have devastating results.
The electronic gaming industry has grown dramatically in recent years as an alternative to other sports and, in many countries around the world, eSports is already recognized as an official sport which clearly illustrates its dynamic. In 2020, and in spite of the pandemic, the revenue of the eSports industry amounted to $947.1 million. According to analysts, the global revenue of eSports will reach and exceed $1 billion by 2021.
The online gaming industry is huge. There are currently over 2 billion e-gamers globally, generating approximately $1 billion per year for the industry. Additionally, a good amount of money is derived by purchases that the players make when playing, such as when they buy in-game currency or in-game items.
Most people are now familiar with eSports and people younger than 40 have almost definitely had a discussion regarding eSports with friends or acquaintances. When eSports started gaining traction, the very inclusion of the word “sports” in the context of videogaming was enough to lead to mockery and sarcasm. Generally, discussions orbiting around eSports spark controversy. The success of eSports lies—partly—on the fact that the industry tapped into a market that simply did not exist before, as gamers are not the first thing that comes to mind when one thinks of sports professionals or fans. Whether you love it or hate it, it does not matter anymore; eSports is on the up and up and one needs only turn to the numbers to understand the extent of its success.
Over the last decade, the eSports industry has experienced phenomenal growth, leading people to question the conventional definition of sports, one that assumes the involvement of physicality. In short, one side argues that eSports do not necessarily constitute a sport because they lack the physical aspect that we’re used to seeing in sports such as basketball, football and others. On the contrary, the other side suggests that eSports, through their competitive nature, as well as their ability to entertain, should definitely be included in the bucket of sports. In this article, we don’t seek to take part in this debate but rather explain why eSports, through their financial outlook and popularity, are here to stay.