The Top 4 Reasons Why Athletes Go Bankrupt In Life After?Sports

CEO of Vaynermedia and co-founder of VaynerSports, Gary Vaynerchuk released this video with his thoughts about why most athletes go bankrupt.

When I came across this video, my initial thoughts were, “This is really insightful, but at the same time it really isn’t a secret or mystery to anybody.”

I mean, we’ve all seen tons of athletes blow their money during and after their career.

We’ve heard the stories about athletes being depressed and struggling during the transition phase.

We all know about the numerous downfalls and obstacles that athletes can go through outside of the sport they play.

Sometimes people can’t imagine how any athlete can lose so much money during their athletic career, yet I’ve always believed it’s one of those things that you can never fully understand unless you’re in their shoes.

You can’t relate to what it’s like to come from absolutely nothing to entering the draft and becoming a millionaire in a just a week.

You can’t relate to suddenly being the bread-winner in your family at the age of 20 and dealing with family members you haven’t heard from in years now reaching out to you to “congratulate” you on all of your success.

You can’t relate to advisors, agents, scouts, coaches, and managers giving you advice every two minutes and having to not only assess if they know what they’re talking about, but also assess who has your best interest in mind with no alternative motives.

We can sit here debating and questioning all day – you simply can’t imagine what it’s like until it’s happened to you.

Nonetheless, it’s something that we have to keep talking about and getting athletes to understand because it’s that important.

The leagues aren’t going anywhere and the money isn’t going anywhere. What we have to ensure is that athletes are empowered and educated enough to take control of their own futures.

Gary Vaynerchuk definitely presented some accurate and valid points as to why athletes struggle financially during and after their playing career, but I wanted to take a deeper dive into these points and address some possible solutions.

4 Main Reasons Why Athletes Go Broke In Life After Sports

1. Not Taking Advantage Of Their Network- The network that you have or can potentially have as a professional athlete might be the strongest your network will ever be in your life. Especially if your playing in a major city such as Los Angeles, New York or Miami. The individuals who sit court side are more than likely some of the most influential people in that particular city. Think about why Kevin Durant when to Golden State. Think about why Lebron James went to LA. The opportunities that your network can provide can be life-changing if you take advantage of it. But it’s not enough to just show up the games and just say “Hi” to them. Take the extra step. Do what others aren’t doing and offer to take them to lunch or for coffee. Even if you’re the last man on the bench, you’re still on the team and they will respect you for engaging with them. Don’t let your network slip. The people you meet will directly have an impact on what happens after your athletic career is over.
2. Not Developing Their Personal Brand- Your brand is the single most important asset that you have as an athlete. Not your money. Not your cars or your house. It’s your brand and your reputation. Think about what people are saying about you when you’re not around. How are you influencing that perception? What types of things are you doing outside of your sport? Are you charitable? Do you sign autographs and speak to fans even if you don’t feel like it? How are you treating the people around the arena? How do you carry yourself online and on social media? All of these things affect the way people see you and your personality. People do things for people that they know like and trust. So it’s your number one job to be a good person and become someone that people like and trust outside of being an athlete. If you’re not, over time it will show and it will negatively affect you. After all, if you’re not controlling your brand and the way people look at you then the media or other people are dictating it.
3. Not Making Sound Business Investments- As an athlete, you have tons of people who will come up to you offering business advice or trying to get money for investments, etc… While some of these ideas and opportunities might be legit, many of them more than likely won’t be. It goes back to the number of athletes we’ve seen in the past lose millions on business deals such as restaurants, car washes, clubs and things of that nature. Athletes will take advice from people around them who have zero experience with business, but pitch them on an innovative idea that they need money for. Sometimes in order to make big money and maximize your return, you have to take big risks in business. The problem lies where athletes don’t do enough research and gain the information for themselves. If you’re an athlete and you plan to invest or act on a business opportunity, exercise your due diligence. Get people around you have that knowledge or hire people who have an expertise in the field your investing in. A few thousand dollars can save you from losing hundreds of thousands or even millions in the long-run. Business can be hard to navigate alone. Know the game before you play it.
4. Not Prioritizing Life After Sports- Plain and simple, you cannot be an athlete forever. No one can. So it’s critical that you start trying things outside of your sport. Figure out what you love to do. Start to take classes or courses to help you learn yourself better. Most of the time your passion won’t find you, you have to go out and find it. This means getting out of your comfort zone and stepping outside of the athlete mold. Majority of athletes will stay in this box their entire life because that’s who the world wants them to be, but you have to know that you’re bigger than that. If you think you might want to be a writer, start a blog or write in your free-time. If you think you might want to be an actor in life after sports, research different acting classes or start reaching out to companies that might give you an chance to be featured in marketing campaigns. What about public speaking? Go back to your high school or community center and give speeches for free to see if this is something that you would potentially want to pursue. Whatever you think you might want to do in life after sports, just try it while you’re still playing. See what works for you and what doesn’t. Self-awareness is key here as well. Understand what you’re good and what you have potential to be great at. These things take some time and a lot of introspection which is why you shouldn’t wait until you’re career is over. Life after sports comes quickly, so it’s up to you to be prepared for that step.

What Exactly Is The Next Step?

There are always going to be programs initiated by all major leagues.

There are always going to be resources provided by external entities.

There are going to be people who deeply care about athletes, their careers, and their well-being going forward.

Being a former athlete myself, these are all things that I wish I would have be informed about while I was playing. My athletic career didn't take me to the NBA, yet I know that every athlete needs to understand this advice.

It doesn't matter where you play or what level you play on, the most important thing you can is educate yourself. Don’t rely on others to provide this information for you. Get out here and learn it yourself. Take control of your life.

Be intentionally knowledgeable about life outside of your sport because your sport is only a small part of your life.

You will always be considered an athlete long after the ball stops bouncing and you can’t run or jump anymore, but don’t let that be the only thing people consider you as.

You’re more than that.

You have more value to give to the world.

Once you understand the full capacity of your being and purpose on this earth, whether your a current or former athlete, there’s nothing you can’t do or achieve.

Nothing.

Want to learn how to use the pro athletes mindset in business and life? Get your free download of The Pivot Game right here ?? https://eepurl.com/c7hiP9

Malcolm Lemmons is a former professional athlete turned entrepreneur, author, and speaker. To check out more, visit his website at www.malcolmlemmons.com.