Why do Pro Athletes Invest in Risky Businesses?
You read about it every now and then. A professional athlete makes what seems to be a crazy investment, loses all his or her money, and now has nothing left to show for all their hard work except a bankruptcy filing.
Right now, the NFL is investigating the possible investment by as many as 25 players in an Alabama casino operation where the owner and others have been accused of bribing legislators. How and why does this happen?
Many professional athletes have fame and fortune at a very young age and simply aren’t prepared or taught how to handle either.
A young professional athlete does not need a friend, teammate or distant cousin twice removed giving financial advice about the next best business deal.
They need solid advice from professionals – professionals who can objectively analyze the myriad business deals presented to them and tell them which ones to avoid. They need someone to tell them no and be a backstop to their friends for all these “investments” that drop like a 12 to 6 curve ball.