By: Eddie Greenblat, fall 2018 IAC Student Intern
Almost all of us have had that Peyton Manning commercial jingle stuck in our head, you know, this one. Athletes are all over the advertisements we see every time we turn on the television, scroll twitter, or waste time on Facebook. Some athletes have turned their advertisement careers into their sole source of income. For example, the superstar tight end for the New England Patriots, Rob Gronkowski “Gronk,” has saved all of his NFL money and only spent money he’s made on endorsement deals.
Glover Quin, of the Detroit Lions, took 70% of his paycheck for the first three years he played in the NFL and invested in “well-known, publicly traded companies.” John Urschel, a former offensive lineman for the Baltimore Ravens, decided he only need about $25,000 to live on each year, despite making around $600,000 per season. These players illustrate how athletes manage their money so that they are financially secure after their playing career ends.
Broke, the documentary featured in Part I of this series, had a part that detailed how athletes invested their money. The featured athletes invested in projects that they “felt good about” or if they knew the peopled involved. That strategy does not usually work out.
The Sports Daily published an article last year that suggested how athletes should invest their money. The article suggested investing in Index Funds, which is a “type of mutual fund or exchange-traded fund that seeks to track the returns of the market index.” Real estate can also be a good option for athletes as long as they do not over extend themselves with too many properties.
Athletes only have a limited time to use their abilities to earn a living. These people, who serve as role models and idols to many young Americans, should follow the lead of players like Gronk, Quin, and Urschel to protect their financial futures.