Risk management for professional athletes

Recently, there have been several articles about professional athletes who have lost $ million in bad financial decisions. Athletes go from golfers to boxers to professional baseball players and have a weak decision to buy cars, women and tigers to fight for gambling and poor business investment. There are some who have been deceived by your agent, accountant or ex-wife. Most of these problems are due to the lack of education and some are attributable to lack of maturity. Whatever the case, these issues are open to entrepreneurs with financial and risk management activities. According to a surprising statistic, 78% of NFL players are bankrupt or financially in difficulty after two years of retirement and 60% of the NBA players have fallen from retirement within five years. These athletes know they have a lot of money and do not think about what will happen when they stop running millions of dollars of checks. Many people do not understand business and / or finances. Some of them have never taken a single at the university. Some professional athletes do not have time to concentrate their finances. Workplace stress does not allow much time to concentrate on field issues such as investment or retirement plans. Raghib "Rocket" Ismail, a former professional footballer who wrote $ 18.5 million in his biggest payroll in four years in 1991, once said, "I once met JP Morgan and literally was Charlie's interview with Brown's teacher "It is not that he is not an intelligent man, but without concentrating on details, many professional athletes ran away in the rain when their money went away.

All of the athletes out there did not necessarily lose their money because they were living extravagant lifestyles. Some people have tried to invest and plan their future, but they did not have people who could trust their money or tried to handle them themselves but did not have enough time or knowledge to do it properly. Some invested in high-risk businesses that flopped up and some invested in businesses that did not have the chance at all. One player invested in an invention that contained an inflatable raft that was attached to the bottom of the sofa so that people with high precipitation could fill the raft and be on the couch when their area was flooded. If this player had someone in the financial / risk management business that he could trust and gain a reputation, he would not have lost his money for such a dumb investment.

The financial / risk management companies that athletes should use should have good reputation with all their clients, and not with Joe's accountant at the local Tape Shopping Center. These companies should try to educate their clients about things they do not understand in bidding meetings and possibly on workshops for financial management and personal finance. If they try to keep the athlete in the dark, they are likely to try to take them in some way. All investments do not have to be "homerun". These companies should try to keep the athletes in the cause.

Financial / risk management is key to everyone's financial stability, regardless of how much money they are earning. If all the investments a person makes is high risk and big prizes, then either a casino can go because everything they do is gambling. Although it is bad for many athletes to have this problem, they open doors to those entrepreneurs in the risk management business. Athletes need to understand that even sports should be seen as businesses and self-employed people who need to work and manage their business.

Source by sbobet

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