If you’ve seen the ESPN documentary Broke, you’re well aware of how a lot of athletes end up filing for bankruptcy, no matter how much money they make as a professional athlete. It’s all too common, unfortunately. Frivolous spending, unwise investments, and trusting people who are untrustworthy are just some of the reasons. Being responsible and careful with your money is an important lesson, regardless of the payday. Just because you’re making $10 million a year doesn’t mean you’re going to make that (or more) every year for life. The hope of being financially solvent for life creates a trap for a lot of athletes.
Smart and savvy athletes prepare for what to do when they finish playing the game that made them rich and famous. Here are some that made a successful transition into success in business.
LeBron James invests wisely
When you talk about LeBron James, he has the kind of stature where a last name is not necessary to say. He joins Michael, Magic, Kareem, Larry, and so on with his skills as a player. But his recent payout from the recent acquisition of Beats by Apple will earn him even more than he makes from playing basketball.
LeBron already has plenty of investments going well for him; he actually takes less money from the teams he plays with. These investments will continue to work in his favor after he retires. As important as basketball has meant to him, he knows he can’t play ball professionally for life.
Tony Hawk develops his brand
Tony Hawk became a brand name when he was only a teenager. In the 1980s, he dominated skateboarding competitions, was featured in best-selling videos that were seen all over the world, and he helped popularize the sport that was once considered a passing fad. He still skates because he loves it, but he smartly knew how to be a successful business man, even when skateboarding’s popularity briefly diminished in the early ’90s.
With a line of clothing found in all Kohl’s department stores, a popular video game series, a skateboarding company to his name, and a foundation that brings skateparks to low-income neighborhoods, Hawk’s net worth is well over $100 million. He remains a humble man, determined and focused, just like how he became one of the top riders in the world.
George Foreman knows the value of integrity
At this point in his life, George Foreman is better known for his line of grilling products than any time he spent in the boxing ring. After retiring from the sport for a second time, his “Lean, Mean, Fat-Reducing Grilling Machine” took off, given its simple, yet effective use. He made some great paydays as the heavyweight champion, but his success in business has greatly eclipsed those paydays.
As he stated in an article with Success, integrity is how he conducts his business. He knows what it’s like to have millions of dollars and lose those millions, seemingly overnight. He’s been smart about his money, and that mindset led him to a large payday for the naming rights of the grills.
