But I had a million dollars

We hear stories about professional athletes going broke and we shake our heads not understanding how someone could have a million dollars, sponsorships and bonuses and end up broke.  It just doesn’t make sense… or does it?

Let’s take a tiny little peek at the million-dollar contract…

Athlete signs a million dollar contract, but they only take home 500k, because of various federal, state and municipal taxes. 

Taxes – $500k

Agents work hard to negotiate the perfect contract for the athletes, so they must get paid , right? 4%-10% of the million-dollar contract will be paid to the agent.  If the athlete has a business manager, accountant or any other team members, they may get paid for their services first or on an ongoing basis.

Agent  - $100k

One of the first financial decisions an athlete makes, especially if they are not playing in their hometown is where they will live? Does the athlete buy or rent? This decision sets the tone for all other financial purchases.  Does the athlete get an affordable apartment until a budget is formulated or do they let pride kick in and purchase the biggest house in the neighborhood of the veteran athletes on the team (not considering the veteran athlete has been in the league for a while and has amassed the type of money to purchase and maintain a mansion). Most athletes will purchase the big home, thinking this is the beginning of my career and I will always be able to keep up these payments and it is what they have dreamed of when they signed the contract.

House  - $4k a month for mortgage on the new mansion $48k per year

Another big purchase that athletes make when they sign the big contract is a new car.  Now it would make sense to continue driving their current car or maybe a tiny upgrade to a newer model, but pride kicks in and they purchase a luxury custom designed car to impress onlookers and maybe even to prove to themselves that they made it.

Car – $1.5k per month $20k per year or $80k

What is left? Approximately, $280k for expenses and savings, but the athlete has not taken into consideration, that they are now the local bank.  Athletes are now an ATM for family members who gave up so much for them.  All of their friends expect them to pay ALL of the bills when hanging out.

Friends/ Family/ personal expenses – $180k (this is probably on the low end)

Keeping up with jones, pride to prove that you have made it to yourself and friends as well as not being able to say no leaves athletes who signed a million-dollars contract with approximately $100k.

We prepare our high school students for college, our college students to be executives and entrepreneurs, but we do not prepare our athletes for life as a professional athlete and beyond.  Athletes need to be physically prepared for life as  a professional athlete, but also mentally for the financial pitfalls, emotionally for the struggles of being in the spotlight and spiritually to be grounded and understand the need to giveback and impact the community. 

Let's prepare our athlete to win on and off the field.

Be Blessed,

A. Mayartis J.

Run Your Own Race

The goal of most runners in a race is cross the finish line first, however for some runners the objective is just to get across the finish line, no matter where they come in, in the race.  In life we need to look at our businesses the same way…Instead of trying to be the first to market, maybe we should take our time to perfect our service/ product and be the best that in the market. 

When you watch a race, most times runners are not side-by-side, they are at various stages... staggered along the course and although they are all competing they are also running THEIR OWN race.  As a runner you are aware of your competitors and are definitely trying your hardest to beat them, but you can only do what you can do.  How do we run our race in business staying aware of competitors and win?

1. Prepare for your race – When running a race for the first time or even as a seasoned runner, you prepare months in advance, so that your body can endure the journey.  In order to start our own business you need to have a clear and concise plan that gives you direction.  This also enables others to help you attain your goal.
2. Stay in your lane – If you are opening up a shoe store, but know nothing about finances or marketing then you need to bring someone in that will be able to handle that part of the race for you.   If you know your strengths and weaknesses you can bring in a trainer to help with the areas you are having difficulty.
3. Hurdles are a part of the race– If you fall during the race, because there was an unexpected hurdle… its not over get back up and continue.  Starting a business is filled with lots of surprises to stop you from accomplishing your goal, but when you find a hurdle in your way you have to jump over it the best way you can and keep on running towards your goal. 
4. Race Delay– There are various reasons a race could be delayed, but it is important that you are ready the moment the officials are prepared to start the race.  When starting a business there are also several things like finances, permits, inventory that can hinder you from beginning.  Even the memory of those issues can put additional hurdles in your mind obstructing you from doing your best.  Whatever the delay is in your race you have to shake it off and accomplish your goals.  You have prepared for this moment for so long, so do not let anything stop you.
5. Funding – Races can be expensive… entry fees, clothing and even transportation to the race, but if you have trained for it, part of your preparation is securing the proper financing.  Finances may be the one reason that you do not open you business, but you cannot let that stop you Educate yourself on the various was to finance a business and be diligent about getting the money.  If you continue to seek ways to secure funds the money will come.
6. Medical unit– If you are running your race and you get hurt you may need to go to the side and get a little medical help before you continue on.  In business if you are having difficulty it may be time for you to reach out to a mentor to get needed advice, so that you move your business forward. It may not be time for you to proceed with this business and you need to know and understand that as well.

These tips will help you stay strong and win your race, but at the end of the day you have to determine what winning is for you.  Is it beating everyone to market or across the finish line or is it crossing the finish line in your own time at your own pace.  Run your own race.

Be Blessed

A. Mayartis J