When the roar of the crowd dies down for an athlete, that’s a clear sign that their career has come to an end. It might have been a long one or it could have been of a limited nature, but regardless of the span, knowing where to go and what to do next is a necessity.
That’s because, in far too many cases, those that have failed to take the time to map out the proper strategy for their post-playing days end up watching their savings diminish or simply disappear. Either that, or they quickly find that the money they thought was there has evaporated.
In truth, real-world salaries are a far cry from what an athlete has earned in their respective sport. That’s especially true if the athlete’s post-high school education is either non-existent or lacking in any real substance, factors that keep them from getting a job they really want. This culture shock is often mind-boggling to the newly-retired athlete.
Another factor that can put a retired player in a bind is poor money management skills during the course of their career. For example, some players who have earned tens of millions (and even hundreds of millions) of dollars have found themselves virtually out of money.
That seems impossible to contemplate, but buying huge mansions, high-prestige vehicles and employing friends and families to cater to your needs can be very expensive. The end of a career can often mean the end of such luxuries, sometimes with those friends and families deserting the athlete once the money train has ended.
Unless an athlete has taken the time to fully comprehend all facets of the investing market, they may be sitting ducks for unscrupulous individuals who see them as an easy mark. This may take the form of asking the athlete to invest in a questionable endeavor that’s doomed to failure or may require the constant infusion of cash by the athlete.
Such schemes can be nipped in the bud by having DSM fully investigate such entities before a single dollar is invested. Doan Sports Management has the athlete’s best interests at heart as opposed to many that look to use the fame of that person to fulfill their own goals.
Often, the biggest investment an athlete makes is related to real estate. Still, as many former players found out during the economic crash of 2008-09, it’s not a fool-proof strategy, and can quickly end in disaster.
Avoiding such pitfalls serves as one of the basic tenets of Doan Sports Management since we emphasize diversification when it comes to investing. That allows us to make sure than any future downturn can be factored into a final equation on exactly how to proceed with an investment.
Jimmy Doan can help set up investing plans that consider such things as annuities, which will guarantee a certain income for years to come. It can also provide simple financial education to make the athlete aware of all options available.
Regarding the latter aspect, the company can also help set up a weekly or monthly budget for the athlete. This will help the individual maintain a consistent cash flow while making sure that debts don’t become a burdensome issue.
While a budget may seem like an obvious decision to make, the reality is that many athletes have never had to consider one. That’s because their level of disposable income was such that, in most cases, there was always enough money to pay the bills.
There’s no way to ignore the specter of taxes either during or after a playing career, but there is a way to legally make arrangements that the final tab will be less than it should.
Doan Sports Management can offer accountants who know the tax code very well, which will put more money into a former athlete’s pocket. This can be important since tax considerations are often overlooked when crafting out the big picture after leaving the playing field.
The end of a playing career stops a regimented schedule that the athlete has followed for many years or even decades. Unless a new job is available to take up that time, the retired athlete often finds themselves at a loss for what to do.
That can lead to a range of emotions, including boredom, depression and anger. In the latter two cases, that can manifest itself through such things as substance abuse or physical violence toward others.
While such scenarios are at the extreme end of an athlete’s retirement, they do exist, so making every effort to avoid them is why having someone committed to offering assistance is so important.
Taking a long-range approach, DSM looks at seemingly mundane things like a variety of insurance options for the person and their family. A tragedy could prevent them from providing for that unit, so investing in this area can encompass proper estate planning.
Even before the end of a career, Doan Sports Management can offer aid in other areas like:
The adage of “it’s not what you know, but who you know” when obtaining a post-playing job is just as viable as it is for the average person. That means that establishing a link with a business, whether it’s in the media, sales or whatever most interests the ex-athlete.
Doan Sports Management can work with that person in either by using their own contacts or helping establish them while the playing career is continuing. That way, when the time comes to move on from the game, a virtually seamless transition can take place.
As previously noted, higher education might not have been a priority and might not in the future for a player, but the educational needs of the children of all athletes should be addressed. That’s especially true with the increasing prices of attending a college or university, which is why Doan Sports Management can offer the proper investment strategies in creating this invaluable nest egg.
Of course, some athletes do go back to school in order to chart a new course in their life, so paying that tuition is something that should be addressed when it comes to retirement planning.
In some sports, the physical toll that’s inflicted over the course of a career can continue long after a player competes. That can lead to health issues down the road that need to be addressed but must be done without the benefit of a staff of free team doctors.
Making the proper arrangements to set aside money for such eventualities can help alleviate those concerns. This allows the ex-athlete to either take care of the issue before it becomes worse or to use it as an insurance policy that might be needed at some point in the future.
Doan Sports Management was created in order to assist an athlete in any number of ways related to their chosen profession. That bond doesn’t end once a career has concluded, which is why the above steps are so vitally important in making a true connection with our clients. For more information, or to get started, contact us at (844) 321-0000 or fill out our convenient online form.