Every athlete is aware that they are on borrowed time to an extent. So it’s vital that they have something to move on to after their sports career stalls. A lot of players go into coaching or managing upon retirement from the playing side, which is a natural progression because of their vast experience in the sport, but a lot of pro athletes have made the jump into investments. The great thing about investments is that, from an athlete’s perspective, they have the money and the resources to pay into a venture, and from their perspective, they can’t go wrong, right? Well, not exactly. Many athletes over the years have made complete blunders when it comes to this, and others have had more than their fair share of success. So let’s have a look at the best and worst investments made by athletes.
As an illustrious player with the Red Sox, as well as the Angels and Mets, the “Hit Dog” hit 328 home runs and received the MVP and the RBI championship Awards back in 1995. But now he has made the change to running a company, OMNI New York, which manages more than 7000 units of housing in the Boston, Las Vegas, Cheyenne, Miami, and New York areas.
Between him and Chris Spencer, they were the two best centers in the NFL draught of 2005, and enjoyed a career with the Baltimore Ravens and the St. Louis Rams, famously walking away from a 37.5 million dollar contract to become a farmer! Setting up his own thousand acre farm in Louisburg, North Carolina, he specializes in sweet potatoes and cucumbers, if you wanted to know! If you go to www.sportsafieldtrophyproperties.com, you can get an idea of the type of life that he gave up professional football for, and it’s not a bad Life by the looks of it!
Oscar De La Hoya
Before he retired in 2009, he was one of the most popular boxers of his time. In addition to his two Olympic gold medals, 10 world titles, and a 36-9 record (30 of those were knockouts), he has now made the change to entrepreneur and mogul. His corporation Golden Boy Enterprises took up within various industries, including clothing as well as media, and acquired magazines The Ring, World Boxing Magazine, and KO Magazine. But his property development company, Golden Boy Partners, focuses on urban development in the Latino communities.
While Elway has had many business successes since he did make a complete faux pas when he and a co-investor put in 15 million dollars that turned out to be a Ponzi scheme. The hedge fund manager, Sean Mueller, ended up collecting 71 million dollars in funds from 60 investors. And, perhaps the most clichéd investment by a sports icon, he invested in steakhouse restaurants, surprisingly called “Elway’s”.
Considered NBA royalty, since leading the Warriors to their first Championship since 1975, he has dipped his toe into the investment game. In 2015, he started a software start-up known as Slyce, with Bryant Barr, who he played basketball with at Davidson College. The idea behind the company was to develop platforms for athletes and improve their contact with fans. It’s nice to see a celebrity actively looking for ways to engage with their fans, rather than trying to avoid them at all costs!
NBA golden boy Webber, becoming the first sophomore since Magic Johnson to be a number one overall draft pick, has tried his hand at various investments. In addition to his restaurants, notably the “Fat Webber Burger” chain, he started a real estate company, Maktub, this helps to develop properties in the Chicago area.
A fan favorite of the New Orleans Saints, McAllister invested in a Nissan dealership in Jackson, Mississippi. This car dealership filed for chapter 11 bankruptcy back in 2009 and was sued by Nissan Finance, resulting in his Louisiana home being auctioned off. In 2012 a settlement was ordered by a judge, but McAllister was again sued by Nissan after claims that he has not paid them a cent.
Arguably the most successful sportsman on and off the court, the first round draft pick in 1979, he has managed impressive feat in being one of the seven people to achieve the Triple Crown in basketball, the NCAA, NBA championships, and winning an Olympic gold medal for his efforts. Arguably, Magic Johnson’s successes after his basketball career have equaled his efforts, and although he has had many businesses that have gone by the wayside, he has invested in multiple properties in America, including the Fontainebleau Park Plaza shopping center in Miami.
One of the greatest centers in NBA history, he achieved to the All-Star feat as well as being an MVP and Olympic gold medalist. He was inducted into the Basketball Hall of Fame as well as the Olympics Hall Of Fame as part of the 1992 Olympic basketball team, as well as for his own efforts. In 2008, he founded the private equity firm Admiral Capital Group, which is a supporter of the David Carver Academy, as well as various investments in upmarket hotels, office buildings, as well as various apartment complexes.
And on the other side of the basketball coin, the ex-Chicago Bull invested in a private jet that didn’t soar as high as he hoped, and has made poor financial decisions since, one that resulted in one of his financial advisors, Robert Lunn being sentenced to 3 years in prison in March 2016. Famously known as “No Tippin’ Pippen” due to his skinflint nature, it’s no surprise that he is cautious with his money nowadays!
The celebrity investment game has had its fair share of ups and downs, and if we can learn anything from this, it’s possibly not to be a basketball player! For some more financial blunders check out this www.time.com article, for an eye-opening account of athlete investments gone sour. But whether you are a Stephen Curry or a Scottie Pippen, it shows that a sporting hero should look beyond their career! They won’t be able to dine out on after dinner speeches forever!