Be Careful Young Men

Now is the time of year when some of the not so fortunate college prospects for the NFL are beginning to sign their sports representation agreements with sports agents. I caution each and every one of them to make sure they know what they are getting themselves into in the long run.

There is an old saying in professional sports, “If your [sports] agent, your financial advisor, and your accountant somehow introduced you to one or the other; fire them all!” I remember being hired as a consultant for a sports agency who represented a lot of high net worth players.  One client in particular caught my attention one day, when I noticed that there seemed to be a disconnect between the agents and the player’s future. 

One day I asked a member in the agency how this particular client was introduced to his financial advisor. He said, “I don’t know.”

I then asked how that client was introduced get his real estate agent to purchase his home. Again the answer, “I don’t know.”

Finally, I asked if the agency had a relationship with either the real estate agent or the financial advisor. The answer? Yep, you guessed it, “I don’t know.”

I was quite dumbfounded by the responses, because the agents were negotiating a multi-million dollar contract, but had very little input or say-so in what the player was going to be doing with his money once they completed he negotiations.

While it can be dangerous to have the agent introduce the client to just one financial advisor or one accountant, it can be just as dangerous, when the major advisors of a professional athletes career have no idea what the long term plan is for the athlete.

Advertisements

About this entry