Latest / Money And Wealth With John Hope Bryant / A Financial Literacy Primer For Inspiring Professional Athletes

Transcript

A Financial Literacy Primer For Inspiring Professional Athletes · Money And Wealth With John Hope Bryant

0:00
Speaker 1: Welcome The Money and Wealth with John ho'bryant, a production
0:03
Speaker 1: of The Black Effect Podcast Network and iHeartRadio. Hey, Hey, Hey,
0:15
Speaker 1: this is John Hope Brian. This is Money and Wealth.
0:18
Speaker 1: I'm an entrepreneur, a businessman. I guess you can call
0:22
Speaker 1: me a philanthropist. I've built the largest financial literacy organization
0:26
Speaker 1: financial coaching organization in America, three hundred offices in forty
0:31
Speaker 1: two states operation and the Hope. We have Hope inside
0:33
Speaker 1: locations across the country. The only non profit allowed to
0:36
Speaker 1: operate inside of a bank branch in US history. We
0:39
Speaker 1: are also the coach for Delta employees, Delta Airline employees,
0:43
Speaker 1: and UPS employees, and a lot of other companies. And
0:46
Speaker 1: we're trusted by the government. Now, all that is important
0:49
Speaker 1: for this next topic. This is going to be a
0:52
Speaker 1: hot and popping podcast series. This is a primer for
0:56
Speaker 1: everybody who wants to go into professional sports and God
0:59
Speaker 1: bless you. Right, everybody should have a dream and everybody
1:02
Speaker 1: should pursue it. I surely pursued mine. But when you
1:06
Speaker 1: pursue that dream, understand that there's a business plan typically
1:11
Speaker 1: behind the dreams at work, and it's the music business
1:16
Speaker 1: or the business of music. In that example, I'll unpack
1:19
Speaker 1: the music business in a separate podcast. It's also the
1:22
Speaker 1: sports business, the business of sports, but folks don't tend
1:27
Speaker 1: to take it seriously like that. So first up in
1:29
Speaker 1: the trending topic, and I normally go easy on people
1:33
Speaker 1: because I think that if you're working class and you
1:36
Speaker 1: didn't didn't get the memo on money, well it's not
1:38
Speaker 1: really your fault. It's what you don't know that you
1:41
Speaker 1: don't know is killing you. But you think you know,
1:43
Speaker 1: and no one taught to you, and you know, we
1:46
Speaker 1: sort of, you know, come up. If you come up
1:49
Speaker 1: black and brown in these communities, no one gave you
1:51
Speaker 1: a financial literacy lesson. There was no resources there for you.
1:56
Speaker 1: There was no there was no counselors, there was no
1:58
Speaker 1: tax advisors. There was in your school teaching you these tools.
2:03
Speaker 1: I got lucky at a financial literacy course when I
2:05
Speaker 1: was nine years old. For those who know my story,
2:08
Speaker 1: read my book which is now bestseller, Financial Literacy for All,
2:12
Speaker 1: which I encourage you to get. By the way, to
2:14
Speaker 1: go along with this podcast series as you talk to
2:16
Speaker 1: your kids about going into professional sports. This is a
2:21
Speaker 1: primer for everybody coming up through high school. Who wants
2:25
Speaker 1: coming up through college, she wants to become a professional
2:27
Speaker 1: athlete in any sport Tennis, golf, football, baseball, basketball, hockey.
2:35
Speaker 1: It doesn't matter what the sport is. If you're trying
2:38
Speaker 1: to become a professional athlete as a career, or you
2:41
Speaker 1: know somebody who is. You know somebody who's dreaming about
2:44
Speaker 1: this as a career, they need to listen to this
2:48
Speaker 1: podcast episode, all of it, and they need to read
2:52
Speaker 1: this book, Financial Literacy for All, which debuted on the
2:54
Speaker 1: USA Today National Bestseller List, the top non fiction book
2:58
Speaker 1: on the list, number twelve of all Books Publishers Weekly
3:02
Speaker 1: bestseller lists, and it's still on the Amazon Global bestseller
3:06
Speaker 1: list for under economics and Business number one. Financial Literacy
3:10
Speaker 1: for All. It is a kitchen top conversation starter and
3:14
Speaker 1: a primary market up.
3:15
Speaker 2: Go through it, have this conversation.
3:17
Speaker 1: Okay, let's now get into this very important topic. This
3:24
Speaker 1: is the trending topic this week.
3:28
Speaker 2: Again.
3:28
Speaker 1: I normally go easy on folks, but I'm going all
3:31
Speaker 1: in on this gentleman because he should know better. And
3:34
Speaker 1: Bassador Andrew Young, this is not somebody making thirty thousand
3:38
Speaker 1: dollars a year who didn't get the tools, didn't have
3:42
Speaker 1: the tools, couldn't reach out to somebody to get to
3:45
Speaker 1: access to tools. It is somebody who had access to
3:48
Speaker 1: everything and threw it away, ignored it. And Bassador Andrew
3:51
Speaker 1: Young says that men and women fail for three reasons. Arrogance, pride,
3:55
Speaker 1: and greed. I don't know the dude's greedy. I don't
3:58
Speaker 1: know his story, and I'm not going to put that
4:00
Speaker 1: on him. I know he was arrogant and put a pride,
4:03
Speaker 1: and I think stupid, if not stupid, he made stupid decisions.
4:09
Speaker 2: And it's not my opinion.
4:11
Speaker 1: I'm just looking at what i'm seeing and then telling you,
4:15
Speaker 1: as a result of that, what happened. And this is
4:18
Speaker 1: a slow moving train wreck that's been in play for
4:20
Speaker 1: two or three years. I'm talking about Antonio Brown, who
4:24
Speaker 1: may have twenty twenty four after eighty eight million dollars
4:28
Speaker 1: of record earnings in the NFL, eighty eight million dollars
4:34
Speaker 1: of more than a dozen years. I think it's a
4:37
Speaker 1: dozen years playing in NFL foul for bankruptcy Protection Chapter eleven,
4:44
Speaker 1: with fifty thousand dollars of assets or less, owing three
4:48
Speaker 1: million dollars to creditors, which included some dude that he
4:52
Speaker 1: got to scuffled with and heals him one point two
4:54
Speaker 1: million dollars a moving truck driver who sued him after
4:59
Speaker 1: Antonio all to them or something.
5:00
Speaker 2: What crazy, You're an NFL player, Why are you assaulting somebody?
5:04
Speaker 1: But it also includes things like credit cards and money
5:07
Speaker 1: to a marketing firm and a law firm. What the
5:10
Speaker 1: heck you made eighty eight million dollars? And this gets worse.
5:17
Speaker 1: This guy, who is a Hall of Famer says this
5:22
Speaker 1: on his own media company website. I can't get it
5:28
Speaker 1: out of my mouth because you're filing bankruptcy and you
5:31
Speaker 1: have a media company. Okay, just this is what they
5:35
Speaker 1: released in their own words. NFL legend. That's what they say,
5:39
Speaker 1: NFL legend Antonio Brown. He is a legend about to
5:42
Speaker 1: be for the wrong reason. It's fouled bankruptcy. Today, he
5:46
Speaker 1: will be a first ballot Hall of Famer in twenty
5:49
Speaker 1: twenty seven. He will be releasing new music this summer.
5:52
Speaker 1: That was not me riffing. I'm reading you the statement
5:57
Speaker 1: this is.
5:59
Speaker 2: It gets worse.
5:59
Speaker 1: By and he is the founder of the most trusted
6:03
Speaker 1: source in all of sports. What are they smoking? I
6:08
Speaker 1: guess I have a right to my opinion. This is
6:10
Speaker 1: my opinion. I'm not judging anybody. I'm just saying this
6:13
Speaker 1: is irrational.
6:15
Speaker 2: Again.
6:15
Speaker 1: NFL legend Antonio Brown has filed bankruptcy. He will be
6:18
Speaker 1: a first ballot Hall of Famer at twenty twenty seven.
6:21
Speaker 1: It says he will be releasing new music this summer.
6:23
Speaker 1: This is the same sentence your Hall of Famer. Your
6:28
Speaker 1: claim to fame is the NFL, but your statement when
6:32
Speaker 1: you file bankruptcy as you're releasing music this summer. He's
6:35
Speaker 1: also the founder of the most trusted source gets worse
6:38
Speaker 1: or better better you look at it, the most trusted
6:40
Speaker 1: source in sports really the just how bankruptcy And I've
6:48
Speaker 1: never heard of this company that's called ct SPN network.
6:58
Speaker 1: In fact, is a company might want to sue you
7:01
Speaker 1: because that sounds a lot like another name. Anyway, that's
7:03
Speaker 1: not my business. He can't go to the law firms.
7:06
Speaker 1: He owns law firm money. This is just ridiculous. And this,
7:10
Speaker 1: let me tell you how incredible this guy's career is.
7:13
Speaker 1: Brown was drafted by the Steelers in the sixth round
7:15
Speaker 1: in the twenty ten NFL Draft. Spent most of his
7:18
Speaker 1: twelve years career in Pittsburgh. He saw a lot of
7:21
Speaker 1: success as a seven time Pro bowler and even won
7:23
Speaker 1: a Super Bowl ring with the Tampa Bay Buccaneers. Isn't
7:26
Speaker 1: that where Tory's shirt off, walked off the field, ran
7:30
Speaker 1: off the field like a lunatic. That's all I remember.
7:34
Speaker 1: And that's when I said he will go broke that moment.
7:39
Speaker 1: Whenever you make an emotional decision, it's a bad one.
7:42
Speaker 1: That was a highly, highly emotional decision. And I guess
7:47
Speaker 1: he played and while he took his game, his shirt
7:50
Speaker 1: off and left the middle of the game against the
7:52
Speaker 1: New York Jets, that's when he was I think with
7:55
Speaker 1: the Tampa Bay Buccaneers, he's made over eighty million dollars.
7:58
Speaker 1: He's broke. What else is there to say? But my lord,
8:04
Speaker 1: now let's get into something more productive. This is John O'Briant,
8:21
Speaker 1: and this is a serious conversation about professional athletes and
8:28
Speaker 1: those who want to be a professional athlete. This is
8:32
Speaker 1: not me picking on anybody. The examples I'm going to
8:35
Speaker 1: give is I walk you through what happens when you're
8:38
Speaker 1: not financially literate and you don't take this seriously as
8:41
Speaker 1: a business, a trade, a career, a profession in your
8:44
Speaker 1: one shot to get the rest of your life completely right.
8:49
Speaker 1: It is three, five, maybe ten years to set up
8:53
Speaker 1: thirty fifty as much as you know, seventy additional years
8:58
Speaker 1: of your life if you live to ninety, eighty, ninety
9:02
Speaker 1: or one hundred.
9:03
Speaker 2: Uh, this is gonna have to last year.
9:05
Speaker 1: And this sort of gladiator since that, this Superman, since
9:10
Speaker 1: that I'm Gonna be okay, has gotten a lot of
9:13
Speaker 1: people in a lot of trouble because it's not you know,
9:16
Speaker 1: they're not gonna They're not gonna be okay. Sixty to
9:20
Speaker 1: seventy percent of all professional athletes.
9:22
Speaker 2: In the NFL and the NBA.
9:24
Speaker 1: I'm I'm talking about, by the way, tennis, I'm talking
9:27
Speaker 1: about black and white. By the way, black people and
9:29
Speaker 1: white people, you know, from all racio socio economic situations.
9:34
Speaker 1: I'm talking about immigrants and you know, and non immigrants.
9:37
Speaker 1: I'm talking about all sports, hockey, football, baseball, basketball, tennis, everything, right,
9:46
Speaker 1: the same examples apply. While there's some good news here,
9:50
Speaker 1: the sixty to seventy percent of all professional athletes from
9:53
Speaker 1: NFL and NBA foul for bankruptcy and or broke within
9:58
Speaker 1: five years after retirement.
10:01
Speaker 2: And I hate to say it, typically.
10:04
Speaker 1: Their wives step leave, they end up in bankruptcy, bankruptcy
10:10
Speaker 1: and with a broken marriage because the party is over.
10:16
Speaker 2: Now, I encourage you.
10:18
Speaker 1: Guys to ladies to watch a documentary series that sort
10:22
Speaker 1: of inspired me to do this.
10:23
Speaker 2: I've been thinking about this for a long time.
10:25
Speaker 1: And Operation Hope is a partner with the NFL on
10:28
Speaker 1: one of their programs that helps with financial fluency and
10:32
Speaker 1: communities and supported by the NFL. And Financial Literacy for
10:36
Speaker 1: All involves both the Commission of the NBA and the NFL.
10:39
Speaker 1: I know they're deeply concerned about this. Roger Goodell, a
10:42
Speaker 1: friend of mine, I know he's deeply concerned about this.
10:44
Speaker 1: My friend Tony wrestler in business partner owns the Atlanta Hawks.
10:47
Speaker 1: I know he's very deeply concerned about this. But they
10:49
Speaker 1: can't force somebody to not be intoxicated with their success
10:56
Speaker 1: and force them to focus on right decision making in
11:03
Speaker 1: their lives. And there's other people who don't want you
11:05
Speaker 1: to focus on right decision making because they want to
11:07
Speaker 1: separate you from your wallet.
11:09
Speaker 2: This.
11:10
Speaker 1: I want you to watch this Netflix show Broke. I
11:14
Speaker 1: want you to pick up this book, Financial Literacy for All,
11:17
Speaker 1: which is a national bestseller in the country USA daid
11:21
Speaker 1: number one nonfiction, number twelve overall when it came out,
11:28
Speaker 1: Publish This Weekly saying it was a top nonfiction book,
11:33
Speaker 1: still number one on Amazon, and several categories business, econologies, etc.
11:38
Speaker 2: In the world financial literacy for all.
11:41
Speaker 1: This is the primer I want you to open up
11:43
Speaker 1: and talk about with your family every week in sort
11:46
Speaker 1: of a kitchen table economic conversation.
11:48
Speaker 2: And certainly if you have kids.
11:50
Speaker 1: That want to go and be professional athletes, I want
11:54
Speaker 1: them to understand that this is the business of sports.
11:58
Speaker 1: It's the sports business, and you are the head of
12:03
Speaker 1: this corporation. And if you don't realize it, people are
12:06
Speaker 1: going to separate you from the money that you may get.
12:09
Speaker 1: The money has last you for the rest of your life. Okay,
12:12
Speaker 1: let's get into this. This is about money. It's about
12:16
Speaker 1: going broke and building wealth in pro sports. And or
12:20
Speaker 1: let me give you one success story off the top,
12:24
Speaker 1: because unfortunately a lot of these examples I'm about to
12:26
Speaker 1: give you are not very positive. And my middle name's Hope,
12:30
Speaker 1: but I can't make this stuff up. But this is
12:32
Speaker 1: the facts of the matter, and I really need those
12:35
Speaker 1: who love, those who want to be professional athletes, and
12:38
Speaker 1: I encourage you to pursue your dreams. Whatever it is
12:40
Speaker 1: I pursue. Mind if you want to be a professional athlete, fantastic.
12:44
Speaker 1: But I want you to go into this with your
12:47
Speaker 1: eyes wide open. So parents, sit your children down, young people,
12:51
Speaker 1: send your friends down. Aspiring high school college athletes, sit
12:56
Speaker 1: yourself down. Girlfriends, sit your boyfriends, boyfriends and your girlfriends down.
13:02
Speaker 1: Everybody sit down and listen to this. Give this to somebody,
13:06
Speaker 1: encourage him to take less than an hour to save
13:12
Speaker 1: pain for the.
13:13
Speaker 2: Rest of their life. Good news.
13:16
Speaker 1: My brother, Reggie Jackson, who we know is mister October,
13:20
Speaker 1: played a very successful hand in the Major Baseball League,
13:25
Speaker 1: Major League Baseball, and is incredibly successful as a businessman.
13:30
Speaker 1: And I went and cut the ribbon to his most
13:32
Speaker 1: recent car dealership that he opened here in the Southeast.
13:38
Speaker 1: I believe it was a Honda dealership, if I'm not mistaken,
13:41
Speaker 1: with a great partner, a great brand, and it's doing
13:45
Speaker 1: extraordinarily well.
13:47
Speaker 2: And so he's made more money.
13:48
Speaker 1: Really much more outside of professional sports than he did inside.
13:52
Speaker 2: And I can give other examples of that.
13:56
Speaker 1: But I want you to now listen very carefully. You
14:04
Speaker 1: got a laugh to keep him crying here, And I'm
14:06
Speaker 1: not laughing at any of these people. I'm not making
14:09
Speaker 1: fun of them. In fact, some of these are tragic stories.
14:11
Speaker 1: This is the facts. Once the glamour in the glissess
14:15
Speaker 1: washed away. Here is the reality of being a professional athlete,
14:20
Speaker 1: a gladiator at the top of your game. His podcast
14:23
Speaker 1: is for every high school student the family of Saying,
14:26
Speaker 1: who aspire to become arofessional athlete. Ricky Henderson got a
14:30
Speaker 1: one million dollar check and when he got this check,
14:35
Speaker 1: the league realized after several weeks that it hadn't been cashed,
14:42
Speaker 1: so they were concerned.
14:44
Speaker 2: So the league got a hold.
14:46
Speaker 1: Of Ricky's manager and Minnie Rickey's manager got a hold
14:48
Speaker 1: of him and said, what's going on? Are you okay?
14:51
Speaker 1: What happened? Did you get the check? Yes, I got
14:54
Speaker 1: the one million dollar check. What happened to it? Why
14:57
Speaker 1: didn't you cash it?
14:58
Speaker 2: Well?
14:59
Speaker 1: I framed it, he said, he framed it. The original
15:04
Speaker 1: check never cashed it. Now, if you walk in my office,
15:07
Speaker 1: I have a million dollar check on my wall from
15:10
Speaker 1: Henry Cravis. It was a million dollar check. It came
15:13
Speaker 1: to me over breakfast from my philanthropy operation Hope and
15:15
Speaker 1: I was very thankful for it. I'm very proud of it.
15:18
Speaker 1: And I made a color copy of that check after
15:22
Speaker 1: I cashed it.
15:24
Speaker 2: What's on the wall.
15:25
Speaker 1: If you want to go break in my office and
15:27
Speaker 1: take it off the wall, knock yourself out, that's a
15:29
Speaker 1: color copy. You'll go to jail for fraud as you
15:32
Speaker 1: try to go to the bank to cash it. By
15:35
Speaker 1: the way, do you know that you a check is
15:37
Speaker 1: not nearly necessarily a check? You know that you can
15:40
Speaker 1: write routing numbers and a checking hand number on the
15:43
Speaker 1: back of a T shirt walking into a bank and
15:47
Speaker 1: technically they have to cash a T shirt. Now they
15:50
Speaker 1: probably won't, or a lot of reason security, whatever, But
15:53
Speaker 1: technically that anything that you have the proper information on
15:57
Speaker 1: can be a form of a payment.
15:58
Speaker 2: Doesn't have to be a physical check.
16:00
Speaker 1: That's just a structured way of transfer deferring your money
16:03
Speaker 1: from one person to another, yours to somebody else. But
16:06
Speaker 1: you can write a check on anything, again, including on
16:10
Speaker 1: the back of your T shirt, if you have the
16:12
Speaker 1: right information. That's just a fun fat But Ricky Henderson
16:17
Speaker 1: needed financial literacy. Magic Johnson, here's a positive story. Magic
16:21
Speaker 1: Johnson made more money off the field, and really the
16:26
Speaker 1: first pro athlete to do this. He made six million
16:28
Speaker 1: dollars in nineteen eighty nine. Away from the court, I
16:32
Speaker 1: know I'm not very well. We're friendly with each other,
16:36
Speaker 1: so I'm not boosting for him. I'm just saying the
16:39
Speaker 1: brother deserves credit where credit is due.
16:41
Speaker 2: He has built a.
16:42
Speaker 1: Business empire off the court that is to be admired.
16:47
Speaker 1: And somebody who had become friendly with Alex Rodriguez has
16:52
Speaker 1: actually mirrored Magic Johnson's approach. And when Magic Johnson was playing,
16:59
Speaker 1: when he first signed up, he would find the people
17:02
Speaker 1: who had the front row seats on the games. He'd
17:06
Speaker 1: go in his uniform and befriend them. And when he
17:09
Speaker 1: found out the ones that were business leaders, he asked
17:12
Speaker 1: them for their card, would call them the next day
17:14
Speaker 1: and said can I come see you for breakfast or lunch.
17:16
Speaker 1: Of course they would say yes. They idolize the Magic
17:20
Speaker 1: Johnson and that's why they were there at the game. Well,
17:24
Speaker 1: he wanted an audience with them so he could learn
17:27
Speaker 1: about business. And you need to know that a lot
17:31
Speaker 1: of my famous friends in the arts and professional sports
17:35
Speaker 1: and music people want to be them. They want to
17:38
Speaker 1: be a business person. They're calling me asking me for
17:41
Speaker 1: advice because they understand it's the music business, it's a
17:44
Speaker 1: business of sports, it's a business of music, etc. And
17:47
Speaker 1: this is what I want you to really get your
17:50
Speaker 1: hands around, is that Magic Johnson went as soon as
17:54
Speaker 1: he had that door open as a professional athlete, immediately
17:58
Speaker 1: use the credibility to get him into the doors of
18:02
Speaker 1: the business people. So you can understand how to doe
18:04
Speaker 1: just to make some money, but how to keep it
18:07
Speaker 1: and how to grow it. You've heard me say it
18:09
Speaker 1: time and again. You make money during the day. You
18:12
Speaker 1: build wealth in your sleep. Making money during the day
18:15
Speaker 1: is what's called making a living. That's literally what it's
18:17
Speaker 1: called making a living, but it's not making a life.
18:21
Speaker 1: It will run out when the checks stopped, the money
18:23
Speaker 1: will run out, right, So I need for you to
18:26
Speaker 1: be in a situation where you can make a living
18:29
Speaker 1: and a life, make money during the day, build wealth
18:32
Speaker 1: in your sleep, which means you need assets, and those
18:34
Speaker 1: assets cannot be on your.
18:37
Speaker 2: Ass. Okay.
18:40
Speaker 1: Alice Rodriguez did the same thing, basically following Magic's model,
18:44
Speaker 1: and he also has made more. Well, I'm sorry, I'm
18:46
Speaker 1: not saying he made more off the court than on
18:48
Speaker 1: I know his net worth succeeds what he made on
18:51
Speaker 1: the court. But he made a lot of money on
18:53
Speaker 1: the court, but he did extremely well for himself in
18:55
Speaker 1: real estate, primarily the business that I'm also in. Again,
19:00
Speaker 1: I known enough to what he's told me personally, is
19:03
Speaker 1: that he literally modeled Magic Johnson and when going into business,
19:11
Speaker 1: endorsement deals, et cetera is what Magic In Rodriga and
19:15
Speaker 1: Alex Rodriguez did in real estate. For Alex, the minimum
19:19
Speaker 1: wage in nineteen seventy in professional sports was about fourteen
19:25
Speaker 1: thousand dollars, so this money really ran up. The average
19:30
Speaker 1: salary of a Major League baseball player in nineteen sixty
19:33
Speaker 1: seven ish was about nineteen thousand dollars. By twenty twelve
19:37
Speaker 1: it was three point two million dollars. So that's enough
19:42
Speaker 1: to get anybody's eyes big as turnups, right, So I
19:44
Speaker 1: understand why people floss. I understand why people get sort
19:47
Speaker 1: of carried away by all this. And you got twenty
19:51
Speaker 1: year old player who you know, maybe broke, so you're
19:54
Speaker 1: so poor, can't afford the o R this Pope po.
19:57
Speaker 1: I understand you get some money, do you not having
20:00
Speaker 1: twenty thousand dollars and now you've got twenty million.
20:03
Speaker 2: You're probably gonna go Craig crazy the first year. I
20:05
Speaker 2: get it.
20:07
Speaker 1: But but have some crek, create money and then set
20:10
Speaker 1: your life straight. Read this book. Understand the taxman is
20:13
Speaker 1: going to take their peace. Understand everybody wants to buy
20:15
Speaker 1: their mother a house in a car and a truck
20:19
Speaker 1: for their dad. That's like the you know, the play
20:21
Speaker 1: the playbook for UH for aspiration and you should all right,
20:26
Speaker 1: but you need to budget these things into categories and
20:32
Speaker 1: and don't go crazy. And there's the bling factor, and
20:35
Speaker 1: then there's a posse factor. All the folks that you
20:37
Speaker 1: want to take from the hood with you to success,
20:40
Speaker 1: do not do.
20:41
Speaker 2: That that will make you broke. Don't let guilt.
20:46
Speaker 1: I mean, you're not responsible for everybody in the neighborhood,
20:49
Speaker 1: and whether they did well or not is your hustling
20:52
Speaker 1: on that on that court. That doesn't mean you're selfish
20:55
Speaker 1: and don't support people, but don't hire them as employees.
21:00
Speaker 1: Call it what it is, philanthropy, right, have a little
21:03
Speaker 1: philanthropic charity fund and when people have an emergency under
21:07
Speaker 1: certain criteria, they can tap it once a year and
21:10
Speaker 1: that's it. But really helped set people up in business,
21:15
Speaker 1: give them a hand up, not a handout. Send him
21:16
Speaker 1: a college, right, send him to trade school. But don't
21:19
Speaker 1: just put them on your payroll, because when the money,
21:21
Speaker 1: your money runs out, they still want their paycheck and
21:24
Speaker 1: they can't give you anything.
21:25
Speaker 2: You've given them money, they can't give you money in return.
21:29
Speaker 1: But I'm getting ahead of myself, way ahead of myself.
21:32
Speaker 1: You can see how passion I am about this topic.
21:36
Speaker 1: The average NBA salary in nineteen eighty four was about
21:39
Speaker 1: three hundred thousand dollars, and by twenty ten it averaged
21:42
Speaker 1: about five million dollars.
21:44
Speaker 2: Michael Vick, here's another one for you.
21:47
Speaker 1: You had a really smart guy, I'm told, of course,
21:50
Speaker 1: very talented, one hundred million dollar contract.
21:53
Speaker 2: He went bankrupt.
21:55
Speaker 1: His so called financial advisor was convicted for running a
21:57
Speaker 1: Ponzi scheme out of her home, and then after that
22:01
Speaker 1: another one was convicted of running upon not a pon
22:05
Speaker 1: the scene, but fraudularty for having fraudulent transactions transactions on
22:09
Speaker 1: Michael's dime. So you've heard about the stuff that Cathol news,
22:14
Speaker 1: but you probably didn't hear that two financial advisors of
22:17
Speaker 1: his robbed him right in front of him, of people
22:20
Speaker 1: who managed his own money, I manage my own money.
22:23
Speaker 1: I encourage you to manage to manage yours. Right, you
22:25
Speaker 1: make it, manage it. Do not say, oh, I'm not
22:29
Speaker 1: interested in that. No, you want to do all the
22:31
Speaker 1: boring stuff about who, what, where and when when about
22:36
Speaker 1: your money?
22:36
Speaker 2: You want to do that yourself.
22:38
Speaker 1: You can have advisors and all this stuff, but you
22:39
Speaker 1: want to count your own money. Bart Scott cash his
22:45
Speaker 1: first NFL check at a check casher. He said they
22:50
Speaker 1: laughed at him when he did it. These are not
22:53
Speaker 1: my words, these are These are the player's words. So
22:56
Speaker 1: I'm not trying to humiliate anybody. Actually thanked them for
23:00
Speaker 1: being so honestly that you can understand that this game
23:05
Speaker 1: is serious because a lot of these guys never recovered.
23:08
Speaker 1: There was the million dollar checks, of five million dollar checks,
23:10
Speaker 1: the five hundred thousandars signing bonuses, a ten milli dollars contract,
23:13
Speaker 1: whatever it was, that was it. That was the most
23:16
Speaker 1: morning they were going to ever see in their life.
23:17
Speaker 1: And when it left, it was gone. Money has velocity.
23:23
Speaker 1: You rich comes from a contract like the contracts I'm
23:26
Speaker 1: talking about here, and that money comes in it and
23:29
Speaker 1: through your hands, it has velocity. It's going to go somewhere,
23:32
Speaker 1: and it's either going to go to appreciating assets or
23:36
Speaker 1: depreciating assets or nose asset at all.
23:39
Speaker 2: Just out the.
23:39
Speaker 1: Door, right and when it's gone, it's gone and you
23:44
Speaker 1: can't get it back. The first big shoe deal was
23:48
Speaker 1: Magic Johnson. He did a two and a half million
23:51
Speaker 1: dollar shoe deal over five years five years, and Chat
23:55
Speaker 1: did a three million dollar shoe deal over several years.
23:58
Speaker 1: And Tiger Woods did a forty men dollar shoot deal
24:01
Speaker 1: over five years. Getting off the court money very smart.
24:06
Speaker 1: Lebron ultimately did it in two thousand and three. This
24:09
Speaker 1: is two thousand and three. Now did a ninety million
24:12
Speaker 1: dollar shoot deal with Nike Ken to becoming the This
24:17
Speaker 1: is like becoming a CEO of a corporation before you're
24:20
Speaker 1: ready to.
24:21
Speaker 2: Do the job.
24:22
Speaker 1: And some people navigate that and some people they just
24:27
Speaker 1: lose their everlasting mine and never and by the time
24:30
Speaker 1: they wake up from the dream or the party or both,
24:35
Speaker 1: it's a nightmare. The money's gone, and the friends are gone.
24:37
Speaker 1: So called friends are gone, the ladies are gone. Everything's
24:40
Speaker 1: gone except the bills, which lasts forever. Ron James is
24:44
Speaker 1: a great example of somebody who understood he was a
24:47
Speaker 1: corporation and responded accordingly and didn't make emotional decisions, as
24:51
Speaker 1: best I can tell, made passionate decisions and intelligent ones
24:54
Speaker 1: and thoughtful ones. And his story is still being told.
24:57
Speaker 1: Of course, we all know Magic the Air Jordan's I'm
25:01
Speaker 1: sorry and what he did in the fact that he
25:04
Speaker 1: actually got ownership in the brand he had created, so
25:09
Speaker 1: he said to get that money. I believe it's five
25:10
Speaker 1: percent of all sales for his brand for the rest
25:14
Speaker 1: of his life, for the rest of the brand's life.
25:17
Speaker 1: Brilliant Leon the seriously if I'm saying that right.
25:22
Speaker 2: Sea r c Y, an.
25:24
Speaker 1: NFL pro, said he was in a car with a
25:27
Speaker 1: jewelry guy and the jury guy was in the back seat.
25:30
Speaker 1: He was in the car and he had given given
25:32
Speaker 1: a jewry guy fifty thousand dollars for some jewelry which
25:35
Speaker 1: probably was not worth more than eight thousand dollars. I
25:38
Speaker 1: might add, try to sell it back to the jeweler
25:40
Speaker 1: and they will buy it for a fraction of what
25:42
Speaker 1: they sold it to you. Anyway, there's another NFL player
25:45
Speaker 1: in the back seat who was trying to outdo Leon,
25:50
Speaker 1: and he wrote a check right all in the spot
25:53
Speaker 1: for two hundred and fifty thousand dollars and handed it
25:56
Speaker 1: to the jeweler. The only person how smart in that
25:58
Speaker 1: car was a jeweler that Juliet walked off for three
26:01
Speaker 1: hundred thousand dollars, and probably the real cost of goods
26:05
Speaker 1: sold for him was probably twenty thousand dollars, less than
26:09
Speaker 1: ten percent of the money that he collected for this custom,
26:13
Speaker 1: not all that valuable jewelry that bleamed but and singed,
26:18
Speaker 1: but did not ring the bell at the bank account
26:23
Speaker 1: or the asset fall at the end of the day,
26:26
Speaker 1: making it rain. Is strip clubs. This is legend with
26:30
Speaker 1: pro athletes, you know. Most people start with the dollars
26:34
Speaker 1: two dollars. These folks, you know, founded it as a
26:37
Speaker 1: source of pride and a sense of their own importance
26:40
Speaker 1: to be able to throw one hundred dollar bills.
26:42
Speaker 2: They still do this.
26:44
Speaker 1: It was a way for them to distinguish themselves amongst
26:46
Speaker 1: themselves and from the average show of the club. And
26:52
Speaker 1: girls would come into the locker rooms, I'm told, and
26:56
Speaker 1: they would sell custom soup packages. Now they made sure
27:00
Speaker 1: that there were ladies doing the selling the custom suit
27:03
Speaker 1: packages for a suit and some shoes and a tie.
27:06
Speaker 1: I'm gonna say, raggedy tie and some worn out shoes
27:10
Speaker 1: and a not so valuable fabric. Of these suits was
27:14
Speaker 1: fifteen thousand dollars. This was, by the way, this is
27:17
Speaker 1: years ago, fifteen thousand dollars. And the Grand Slam package
27:21
Speaker 1: in the baseball locker room, the Grand Slam package of
27:27
Speaker 1: three to four suits, wow, was.
27:29
Speaker 2: Fifty thousand dollars.
27:32
Speaker 1: I just can't, I just can't hold it together, just
27:35
Speaker 1: robbing you in broad daylight. By the way, these the
27:38
Speaker 1: locker room as supposed to be off limits, so let's
27:41
Speaker 1: put that aside. Evander Holyfield bought a one hundred acre
27:46
Speaker 1: property near where our home is for our family property
27:50
Speaker 1: in Greater Atlanta. Bought one hundred acres and built a
27:57
Speaker 1: fifty thousand square foot home. Yes, I said that right,
28:00
Speaker 1: fifty thousand square feed home with two bowling alleys. Why
28:04
Speaker 1: wasn't one bowling alley enough one hundred and nine rooms?
28:08
Speaker 1: I believe it was. And I'm gonna come back to
28:10
Speaker 1: this part of the story the minutes. We'll hold on
28:12
Speaker 1: to that now. Of course, Evander was a boxer, so
28:15
Speaker 1: that's another sport. He made a mint boxing, and when
28:19
Speaker 1: you think about these boxers today, and it's one in
28:22
Speaker 1: Las Vegas who I've said is going to have very
28:24
Speaker 1: serious problems that he keeps taking a jet for himself
28:28
Speaker 1: and a jet for his girls, and another jet for
28:30
Speaker 1: his friends, private jets flying around the world. I don't
28:33
Speaker 1: care how much money you make, you can go broke.
28:35
Speaker 1: People say, oh, it's no way he's gonna go broke. Yeah,
28:37
Speaker 1: he wears one pair of shoes and then tosses it. No,
28:41
Speaker 1: he's gonna go broke. Right, But so here's here's a
28:46
Speaker 1: great example or a bad example. Really, Evander Holyfield. NFL
28:51
Speaker 1: players spend the most money because what I'm told, because
28:55
Speaker 1: no one see them under their helmet, so they they
28:57
Speaker 1: sort of go out of their way to floss. And
29:00
Speaker 1: they're the ones who really make it rain and write
29:02
Speaker 1: the checks in the clubs and do the bottle service
29:04
Speaker 1: and all that stuff. Pro golfer John Daly, who is Caucasian,
29:09
Speaker 1: for the purpose of making sure that everybody knows that
29:11
Speaker 1: this the pain is equally distributed here lost fifty million
29:16
Speaker 1: dollars gambling million. Charles Barkley said he lost ten million
29:23
Speaker 1: dollars gambling. Charles was smart enough to be multi talent,
29:27
Speaker 1: then he's still working to this very day off the
29:30
Speaker 1: court was extremely valuable, extremely.
29:34
Speaker 2: Well.
29:35
Speaker 1: It has a net worth and a and a brand.
29:39
Speaker 1: So he can, I guess afford to lose that ten million,
29:41
Speaker 1: but I know it hurts ten million dollars. Okay, how
29:43
Speaker 1: much money you make. It's a lot of motive. Keith
29:49
Speaker 1: mccantz of the NFL's somebody. I want you to do
29:53
Speaker 1: some research on Andre Rison, our son of the NFL.
29:57
Speaker 1: Somebody gonna come back to this story. This is somebody
30:01
Speaker 1: you might recall, had the hip hop girlfriend and they
30:05
Speaker 1: brought down their house, his house in Atlanta.
30:08
Speaker 2: Hold on to that story. We're going to come back
30:11
Speaker 2: to that.
30:13
Speaker 1: So it contracts NBA and baseball contracts are guaranteed. You
30:18
Speaker 1: may not know those are going to be football players.
30:20
Speaker 1: And again I'm not discouraging you. I want you to
30:22
Speaker 1: pursue your dreams. NFL contracts are not guaranteed. Only the
30:27
Speaker 1: signing bonus is guaranteed. Now there's of course exceptions to
30:32
Speaker 1: all these rules, but generally speaking, that contract is not guaranteed. Worse,
30:37
Speaker 1: athletes paid the top tax bracket, while a hedge fund
30:41
Speaker 1: manager or a real estate entrepreneur pays twenty percent or less.
30:44
Speaker 1: Which called capital gains tax even less because they've got
30:48
Speaker 1: a big corporation and tax people and lawyers who are
30:51
Speaker 1: working to figure out this deduction and that deduction and
30:53
Speaker 1: this tax right off and that. So a hedge fund manager,
30:57
Speaker 1: a private equity person, a bank or a financier, real
30:59
Speaker 1: estate person, and entrepreneur like me has staff people and
31:02
Speaker 1: professionals who are working all the time for them to
31:05
Speaker 1: maximize their tax benefits under the law. Where these players
31:10
Speaker 1: are just a corporation of one again their CEO before
31:13
Speaker 1: they're prepared to be one. They're writing a check at
31:16
Speaker 1: the highest tax bracket.
31:18
Speaker 2: And you may not know.
31:19
Speaker 1: You may end up playing taxes in multiple states and
31:22
Speaker 1: taxing districts because you're getting paid every week and your
31:27
Speaker 1: and your baby tax based on the place you're playing.
31:30
Speaker 1: Isn't that crazy? Darryl Strawberry went to prison for not
31:35
Speaker 1: paying taxes. Yeah, I'd rather owe my mother God rest
31:40
Speaker 1: her soul than than to owe the I R S.
31:44
Speaker 1: I mean that that that's not something to play with.
31:48
Speaker 1: The gangster al Capone did not go down because of
31:52
Speaker 1: murdering mayhem. He went down because of tax evasion. Do
31:56
Speaker 1: not play with the I R s and and don't
31:59
Speaker 1: don't be a don't be angry about it. You know
32:01
Speaker 1: you made the money, you'd be happy to pay taxes.
32:05
Speaker 2: I mean you made a lot of money. I means
32:06
Speaker 2: you're doing extraordinarily well.
32:07
Speaker 1: You just want to make sure you're maximizing the legally
32:10
Speaker 1: available tax benefits to you, which means you needed professionals
32:14
Speaker 1: that you can trust, who are credentialed and have good,
32:19
Speaker 1: unimpeachable credentials that can give you great tax.
32:22
Speaker 2: Advice around allowable deductions and things like that.
32:28
Speaker 1: In the NFL, you are paid over a six month period,
32:31
Speaker 1: and you're paid on a pro route period over that
32:34
Speaker 1: six months. You've got to then budget yourself for the
32:36
Speaker 1: rest of that year so the money will last. Literally,
32:41
Speaker 1: it's paycheck to paycheck with a bunch of zeros next
32:43
Speaker 1: to it. So you get paid for six months. Now
32:46
Speaker 1: you've got to self manage yourself for six months. Imagine
32:49
Speaker 1: how tough that is for somebody who's newly rich and
32:53
Speaker 1: thinks some money's gonna last forever. Daz Bryant, the Easy
32:57
Speaker 1: DZ Bryant once picked up a fifty six thousand dollars
33:02
Speaker 1: bill at a restaurant. I just can't imagine when I
33:05
Speaker 1: get a thousand dollar bill if sponsoring folks, and I've
33:08
Speaker 1: done very well, I mean I got an attitude, right,
33:12
Speaker 1: a thousand dollars bill. I still remember every time I
33:15
Speaker 1: paid a big bill in a restaurant. This dude paid
33:17
Speaker 1: fifty six thousand dollars at a restaurant, and if you
33:20
Speaker 1: plus it up on the taxes, that means that was
33:24
Speaker 1: one hundred and ten thousand dollars check before he paid
33:27
Speaker 1: taxes he paid, So it's one hundred ten thousand dollars
33:29
Speaker 1: for earnings, right but once and then you pay taxes
33:33
Speaker 1: on that because you're the highest tax bracket. So the
33:35
Speaker 1: net was fifty six thousand dollars for a meal. That's
33:39
Speaker 1: gonna go away. You'll never see it again. He went broke.
33:53
Speaker 1: Here's some bad business business deals and bad businesses, and
33:56
Speaker 1: a lot of athletes, for some reason, seem to be
33:58
Speaker 1: attracted to like you know, a magnet. The metal car washes,
34:04
Speaker 1: stripper pole businesses inside of houses. Don't ask me about this,
34:08
Speaker 1: I don't know, but the portable stripper pole businesses or
34:11
Speaker 1: people wanted to put stripper poles in their houses a
34:13
Speaker 1: big business. And that's people have done athletes have done that. Restaurants.
34:17
Speaker 1: There's nothing wrong with restaurants and clubs, but they're cash businesses.
34:20
Speaker 1: You've got to be there. You can't play, you can't
34:23
Speaker 1: you know, sample your own product. Right, he's being eating
34:26
Speaker 1: up all the food and drinking all the drinks. It
34:28
Speaker 1: has to be serious business, but a lot of these
34:30
Speaker 1: things are just socially attractive to athletes. Car washing, strip clubs, clubs,
34:36
Speaker 1: financing movies, financing record labels.
34:38
Speaker 2: So you have heard her.
34:40
Speaker 1: One of my trending topic this gud dude Antonio Brown
34:44
Speaker 1: who just went bust. What's his big comeback? He's got
34:47
Speaker 1: music coming out this summer. Hasn't he paid attention to
34:51
Speaker 1: any facts that are out there for anybody to see.
34:54
Speaker 1: That is a really bad move after you just filed bankruptcy.
34:57
Speaker 1: But what he doesn't listen because the infybody out there,
35:00
Speaker 1: if you really want to know, could call me. Yeah,
35:02
Speaker 1: I'd be happy to talk to him for free. I
35:04
Speaker 1: don't want anything for anybody. I'm good. This is free,
35:07
Speaker 1: by the way to you. It's estimated that one out
35:09
Speaker 1: of very forty business ideas you know, will work. So
35:13
Speaker 1: what's the chances that your cousin bam bam is going
35:16
Speaker 1: to have a great business idea. And when you ask
35:18
Speaker 1: them where's a business plan and they say, what's that,
35:20
Speaker 1: that should be a great signal that it is a
35:22
Speaker 1: bad business idea and you should run as fast as
35:27
Speaker 1: you can. Family and friends are the worst. Yes, I
35:30
Speaker 1: said it all of a sudden. Everybody wants to be
35:33
Speaker 1: your friend when you're rich and you're wealthy, and I
35:34
Speaker 1: really know this, and it's heartbreaking the stuff that people
35:37
Speaker 1: will bring to you, to your doorstep once you've made
35:40
Speaker 1: a little bit of money, it's heartbreaking. You just feel
35:42
Speaker 1: like you just feel used in a slot machine and exhausted,
35:46
Speaker 1: and you cannot just go into this feeling like you
35:48
Speaker 1: had to take the entire neighborhood with you or you
35:50
Speaker 1: will go bro.
35:53
Speaker 2: You can help people, give them a hand up, not
35:55
Speaker 2: a handout.
35:56
Speaker 1: One mother was upset with her son because he was
36:00
Speaker 1: not doing what she wanted him to do financially. So
36:04
Speaker 1: he became a pro, and she got so upset she
36:07
Speaker 1: gave him a bill over twenty five thousand dollars. At
36:11
Speaker 1: his party to celebrate his contract, she gave him a
36:15
Speaker 1: bill over twenty five thousand dollars for raising him no,
36:20
Speaker 1: I'm not kidding. That's completely serious, and it's very sad.
36:24
Speaker 1: Money changes people. I've seen it. My mother had this
36:28
Speaker 1: brilliant thing she did in her will when she passed away.
36:31
Speaker 1: Whennia Smith got rest her soul, she worked an hourly
36:34
Speaker 1: job for thirty two years. Wennida Smith did a great
36:37
Speaker 1: job and had a net worth, you know, cumulatively with
36:40
Speaker 1: all this, you know, sort of add up the money
36:42
Speaker 1: she gave for different family members to do things, buy homes, whatever,
36:46
Speaker 1: about a million dollars net worth. And she said in
36:48
Speaker 1: her will it was a I call a poison pill
36:51
Speaker 1: clause that said anybody who challenges his will will be
36:55
Speaker 1: cut out of it. Mom was gangster. I will be
36:59
Speaker 1: doing the same thing. I encourage you to have a
37:01
Speaker 1: wheel first of all, and yes, do the same thing.
37:04
Speaker 1: This is your intention. You made the money. No one
37:06
Speaker 1: has the right to tell you how to spend it
37:08
Speaker 1: or how to allocate it. It is your as long as
37:10
Speaker 1: you're winning your right mind, it's your choice. And anybody
37:13
Speaker 1: who challenges that will on the reel after you're gone
37:16
Speaker 1: gets cut out of it. By by Felicia, another player
37:21
Speaker 1: had had sixty mobile phone numbers assigned to him from
37:24
Speaker 1: the phone company. The only problem was he only had
37:27
Speaker 1: one phone. I'll let you figure the rest of that out.
37:30
Speaker 1: People were just taking advantage of him and he was
37:32
Speaker 1: paying the bill. He had six homes. He only lived
37:35
Speaker 1: in one, but the other five homes were always posse
37:38
Speaker 1: to crash. What he was playing on the field, They
37:41
Speaker 1: were playing at the club or wherever. Why can't you
37:45
Speaker 1: go to word? What were they doing before we became
37:46
Speaker 1: became a pro athlete? Again, you cannot You cannot carry
37:50
Speaker 1: everybody into their nirvana. Is it's a dream. They're going
37:54
Speaker 1: to wake up and it's not going to be real,
37:57
Speaker 1: and you're gonna wake up. It's going to be a nightmare.
38:00
Speaker 1: Former number one tennis player in the world Sanchez Vicario
38:05
Speaker 1: lost all sixty dollars.
38:08
Speaker 2: Of her fortune to her parents.
38:10
Speaker 1: The photo you see of them is parents kissing them
38:13
Speaker 1: on her in the chee cheeks. Is so loving, so sweet. Yeah,
38:17
Speaker 1: while that they had their hands in her pocket and
38:20
Speaker 1: took every dime she had, she's broke. There was something
38:25
Speaker 1: called the ball or alert, Yes I said that, and
38:30
Speaker 1: it alerted women that when ballers basketball players were going
38:37
Speaker 1: from the courts to a club or wherever, the women
38:40
Speaker 1: would get and there were seven thousand MILLIONALSS lists would
38:43
Speaker 1: get a text message of where to show up. Okay,
38:48
Speaker 1: I won't go any more on that child support drama.
38:52
Speaker 1: Holyfield had to pay for child support for eleven children
38:56
Speaker 1: from nine women. That's this is an absolute way to
38:59
Speaker 1: go broke. You got to take the care of these
39:01
Speaker 1: children for eighteen years. Your career will last three years,
39:05
Speaker 1: five years maximum ten years on average three to five years.
39:11
Speaker 1: Where's this money coming from? A fifty thousand, thirty thousand,
39:14
Speaker 1: twenty thousand, eighty thousand, one hundred thousand dollars a month
39:18
Speaker 1: for child support payments? That's not including your other bills.
39:22
Speaker 1: How's that sustainable? And you can't just turn it off there?
39:26
Speaker 1: These are real, live people. This is a relationship. You
39:29
Speaker 1: created a life, you brought in this world, and you're
39:31
Speaker 1: responsible for him or her or both. Holyfield had eleven
39:36
Speaker 1: children from nine women. Travis Henry from the NFL oh
39:42
Speaker 1: seventeen thousand dollars per month woof in child support for
39:46
Speaker 1: nine children from nine women.
39:48
Speaker 2: He could not pay, went broke.
39:51
Speaker 1: NFL has the biggest injury's highest pay in the shortest
39:54
Speaker 1: career co SAR. Another player got a seven year twenty
39:59
Speaker 1: s six million dollar contract.
40:01
Speaker 2: Yay.
40:03
Speaker 1: A few weeks later, he got a twenty thousand dollars
40:05
Speaker 1: see you later from the Cleveland team that he had
40:09
Speaker 1: signed with.
40:09
Speaker 2: Something happened they could let him go.
40:11
Speaker 1: I told you, NFL contracts basically a version of at
40:14
Speaker 1: will again. This is a great things. I'm not down
40:17
Speaker 1: in the NFL again. I partnered with the NFL. I
40:20
Speaker 1: know a lot of people who've done extraordinarily well at
40:23
Speaker 1: NFL players, but that's because they looked after their money,
40:26
Speaker 1: and they knew the contracts they signed, and they didn't
40:29
Speaker 1: play around with this opportunity. They treated it like it was,
40:32
Speaker 1: which is once in a lifetime gift. Tarrell Owens, NFL star,
40:38
Speaker 1: went from rich to zero. Major League Baseball player Lenny
40:44
Speaker 1: Dykstra went from being worth fifty eight million dollars to
40:48
Speaker 1: a bank account of fifty thousand dollars.
40:50
Speaker 2: What's this?
40:50
Speaker 1: What is fifty thousand dollars number? Tonio Brown same thing,
40:53
Speaker 1: fifty thousand dollars in assets. He had thirty one million
40:56
Speaker 1: dollars in assets at one point is bankrups filing? He
41:01
Speaker 1: had fifty thousand dollars and by the way, he went
41:04
Speaker 1: to prison NFL star Warren Sapp dead broke. Major League
41:09
Speaker 1: Baseball star Kurt Shilling put thirty five million dollars into
41:12
Speaker 1: a video game business. Se would you see a trend here?
41:15
Speaker 1: It's like it's like adult kids, right, but yeah, it's five.
41:19
Speaker 1: These are toys. But you can't invest all your money
41:21
Speaker 1: in a toy. Where's the real estate? Where's the you
41:26
Speaker 1: need a where's the accounting business or the law firm
41:29
Speaker 1: you started up, or the you know, I mean a franchise.
41:34
Speaker 2: You know, somebody with a proven business plan.
41:37
Speaker 1: You know, twenty McDonald's that you want to own, or
41:39
Speaker 1: Burger Kings or whatever. Right I mean this, Okay, anyway,
41:43
Speaker 1: you know where this story is going. You put thirty
41:45
Speaker 1: five million dollars, but video game business ended up upside
41:47
Speaker 1: down fifty million dollars broke. He had twenty two million
41:52
Speaker 1: dollars in assets and owed one hundred and fifty one
41:56
Speaker 1: million dollars. Latree Spreewell earned one hundred million dollars and
42:02
Speaker 1: famously turned down a twenty one million dollar extension, saying
42:08
Speaker 1: this someone was as bad as Antonio Brown, maybe worse.
42:11
Speaker 1: It's maybe worse. Actually, he actually said he turned out
42:15
Speaker 1: a twenty one dollar contract extension because he quote had
42:19
Speaker 1: a family defeat.
42:21
Speaker 2: He went broke.
42:22
Speaker 1: One hundred and ten million dollar made in fifteen NBA
42:26
Speaker 1: seasons with Antonio Walker, and he's working through trying to
42:31
Speaker 1: come back. Right now, Allen Iverson squandered two hundred million
42:35
Speaker 1: dollars in his NBA career. This is eyewatering. These are
42:40
Speaker 1: I piercing numbers. Two hundred million dollars. Now, I told
42:44
Speaker 1: you where the career and numbers started and how they
42:47
Speaker 1: racked up. So when Reggie Jackson, my brother Reggie, when
42:49
Speaker 1: he was coming up, it was not the biggest those
42:51
Speaker 1: were not That wasn't the time when the biggest paychecks
42:53
Speaker 1: were coming through. And my brother, not my brother, but
42:57
Speaker 1: my friend Billy Are and her late husband and Hank Aaron.
43:01
Speaker 1: He didn't the home run king. He didn't make a
43:03
Speaker 1: fortune in baseball coming up, but he made a fortunate
43:06
Speaker 1: new business owning BMW dealerships and doing endorsement deals and
43:10
Speaker 1: doing business deals.
43:11
Speaker 2: I mean just brilliant as a businessman.
43:13
Speaker 1: He understood, they all understood this was a shot to
43:17
Speaker 1: turn an income into an asset, a temporary moment, into
43:22
Speaker 1: a career of lifetime sustainability and quality of life. I'll
43:28
Speaker 1: get to what to do here in a moment. NFL players,
43:33
Speaker 1: it's comedy. Sell their Super Bowl rings when they get
43:36
Speaker 1: in trouble. You can go on the auction networks in
43:39
Speaker 1: eBay and see Super Bowl rings for sale. Mark Brunnell
43:43
Speaker 1: in twenty eleven lost fifty million dollars. Remember that story
43:47
Speaker 1: I told you about Holyfield who has a house near
43:51
Speaker 1: our home. Well, it was one hundred acres. He lost it.
43:57
Speaker 1: He owed twelve million dollars at the time one hundred
43:59
Speaker 1: and nine room home worth at the time nine million dollars.
44:04
Speaker 1: I think he ended up selling it under distress for
44:06
Speaker 1: five million dollars to a rapper who has it now.
44:10
Speaker 1: And I hope that he is managing his affairs properly.
44:14
Speaker 1: He seemed to be floss into. But that's I'm not
44:17
Speaker 1: gonna get into. This is a professional sports. I don't
44:20
Speaker 1: know his story all right, so I wish him well.
44:25
Speaker 1: Leon Searcy retired from the NFL in two thousand and
44:29
Speaker 1: two after ten years. He's a sales rep for a
44:32
Speaker 1: software company today. After ten years, what I want you
44:37
Speaker 1: to do is take five years with an income to
44:39
Speaker 1: figure out you're going to live on it for fifty years.
44:42
Speaker 1: So let me give you a quick investment, one on
44:45
Speaker 1: one situation. If you put two and a half million
44:49
Speaker 1: dollars in the bank and it gets ten percent average
44:52
Speaker 1: return from the stock market, and when you have a
44:54
Speaker 1: pie here of what to do with money. Private equity
44:57
Speaker 1: on Wall Street means something different than private equity on
45:01
Speaker 1: your street. A lot of these guys are doing private equity,
45:04
Speaker 1: meaning they're investing in the strip club and the restaurant.
45:07
Speaker 1: The thing I told you about the silly stuff. Private equity.
45:11
Speaker 1: That's where most of the money is going to the
45:14
Speaker 1: things of their own, their own ideas, most of which
45:18
Speaker 1: don't work because they're not financially illiterate, not because they're
45:21
Speaker 1: not smart people. They're obviously breeding the talent. They're professional athletes.
45:24
Speaker 1: But that doesn't mean you're a great investor. So I
45:28
Speaker 1: want you to have most of that insecurities publicly traded
45:32
Speaker 1: stocks on the stock market through proper brokerage firms with
45:35
Speaker 1: proper advisors. In that regard, I use Rockefeller Capital Management,
45:40
Speaker 1: as in the Rockefeller family. But you can, you know,
45:43
Speaker 1: but I still pay attention to everything, even though I've
45:45
Speaker 1: got somebody handing my business. Also used Wells Fargo to
45:48
Speaker 1: a few others. Right, So I want you to have
45:50
Speaker 1: a securities portfolio. I want you to have real estate, right.
45:54
Speaker 1: I want you to have some stocks and bonds. You
45:55
Speaker 1: can also have some gold or whatever is and that
45:57
Speaker 1: you know, if you want to do that natural resources.
46:01
Speaker 1: And if you have a look you want to take
46:03
Speaker 1: ten percent, do some crypto or whatever. Knock yourself out,
46:06
Speaker 1: but don't don't use your wrint money. And it should
46:08
Speaker 1: be five percent for private equity, not fifty five percent,
46:11
Speaker 1: not eighty five percent for our hood version of private equity,
46:15
Speaker 1: which is pooking them in some crazy idea for a
46:19
Speaker 1: business that they want you to finance, and they've never
46:21
Speaker 1: been a business person in their life. So if you
46:26
Speaker 1: have two and a half million dollars, that'll return about
46:29
Speaker 1: two hundred and fifty thousand dollars a year, which should
46:31
Speaker 1: be enough for remote they have most people to live
46:33
Speaker 1: on in retirement. If you have five million dollars that
46:36
Speaker 1: you've made, again, these people made thirty million, forty million,
46:39
Speaker 1: fifty million, one hundred million dollars contracts. I'm not talking
46:41
Speaker 1: a lot of that money. Five million dollars of that
46:44
Speaker 1: ten percent return on your stock portfolio is five hundred
46:48
Speaker 1: thousand dollars a year. That's a lot of passive income.
46:52
Speaker 1: That's a lot of money to chill once you're retired,
46:56
Speaker 1: and that's for the rest of your life. Don't never
46:58
Speaker 1: touch the principle you want to live off the interest. Okay,
47:02
Speaker 1: everybody watching this, tell the young person who has short
47:06
Speaker 1: attention span to go to this point of the audio
47:10
Speaker 1: the podcast and just listen to what I just said
47:12
Speaker 1: to them. Take a principal amount of money, do not
47:15
Speaker 1: touch it. Do not touch it. Put it in conservative
47:19
Speaker 1: boring stock right, the same stocks that are building my
47:23
Speaker 1: billionaire friends. Put it in right best the biggest and
47:26
Speaker 1: best companies in America and the world that are proven track,
47:30
Speaker 1: working for profitability, et cetera. And don't touch the principle.
47:33
Speaker 1: In fact, you want some stocks to have a dividend payment,
47:36
Speaker 1: meaning they pay a return on their earnings to their
47:40
Speaker 1: shareholders in a fee. But you should be able to
47:43
Speaker 1: get a ten percent eight to ten percent average return
47:46
Speaker 1: five eight something north of five percent.
47:49
Speaker 2: Five.
47:50
Speaker 1: You know, bonds will give you that five eight ten
47:52
Speaker 1: percent return on your stock portfolio. And if you have
47:57
Speaker 1: five million dollars in there, that's half million dollars a
47:59
Speaker 1: year and a budget to live on a half million
48:01
Speaker 1: dollars a year for the rest of your life and
48:02
Speaker 1: any money else other money you make outside of NFL.
48:06
Speaker 1: You've got businesses, or you want to do some side
48:09
Speaker 1: thing or go work for corporation, well that's extra money.
48:12
Speaker 2: So I just gave you. I gave everybody official literacy lesson.
48:15
Speaker 2: Use that one. If you want to go on professional sports.
48:18
Speaker 1: Never touch the principle, and you can always if I
48:22
Speaker 1: read something goes wrong, you still have that money to
48:25
Speaker 1: draw on, even the stock market goes crazy temporarily.
48:31
Speaker 2: One of the things the.
48:31
Speaker 1: Gentlemen said on the on the on on the documentary,
48:35
Speaker 1: I thought it was brilliant, and it's a goal without
48:37
Speaker 1: a plan is a wish. Yes, a goal without a
48:42
Speaker 1: plan is nothing more than a wish. Completely true. Private
48:48
Speaker 1: equity is probably a problem with these athletes. And I've
48:50
Speaker 1: already described it because it's it's hood equity. It's hood
48:53
Speaker 1: private equity, not institutional wall free private equity. And again
48:57
Speaker 1: I'm not going to repeat that, I've already said it,
48:59
Speaker 1: but it just it just it's so so important to
49:02
Speaker 1: get that one right, Like you can't keep funding all
49:05
Speaker 1: your friends, crazy ideas which are not proven and will fail.
49:10
Speaker 1: Thirty thousand here, twenty thousand here. Everybody's got an idea,
49:13
Speaker 1: but they can't pay you back when the idea to
49:15
Speaker 1: go south of the border, can they? Sorry, man, I
49:18
Speaker 1: don't know what happened.
49:19
Speaker 2: I know what happened.
49:20
Speaker 1: You know what you're doing, and I paid for it,
49:23
Speaker 1: and now you want some more money to cover your bills.
49:27
Speaker 1: Here's some success stories ended a positive note. Former NBA
49:31
Speaker 1: forward Jamal Mashburn owns several car dealerships and restaurants throughout Kentucky.
49:37
Speaker 1: He's doing extraordinarily well. Long since retired. Winfred Tubbs is
49:42
Speaker 1: an entrepreneur and an investor, doing extraordinarily well. Somebody told
49:47
Speaker 1: one of these guys the gentleman mention. Andre Rezooned, his
49:51
Speaker 1: coach told him when he saw him spinning like it
49:54
Speaker 1: was going out of style, told him, don't make me
49:57
Speaker 1: pull up in my Cadillac and asked you to wash
50:00
Speaker 1: my car, meaning you've gone broke.
50:02
Speaker 2: He's all, that's never gonna happen to me.
50:04
Speaker 1: And he remembers this great saying that Mike told him
50:06
Speaker 1: to live like a king for a year, or live
50:09
Speaker 1: like a prince. Forever. I want you to live like
50:11
Speaker 1: a prince forever. It's nothing wrong. I mean, a prince
50:14
Speaker 1: is a great thing. If you in fact, if you
50:16
Speaker 1: lived like a prince and didn't know what a king
50:17
Speaker 1: lived like, you would another difference. You'd be completely happy.
50:20
Speaker 1: Lived like a king for a year or lived like
50:22
Speaker 1: a prince forever. That's what I'm talking about. Make smart
50:24
Speaker 1: sexy again. We were making dumb sexy way too long,
50:28
Speaker 1: dumbed down and celebrated it. It's time to make smart
50:31
Speaker 1: sexy again. Okay, let's end with Andre Rison, and I'm
50:35
Speaker 1: not picking on him. Remember the guy whose girlfriend burned
50:39
Speaker 1: down his house again? I think my memory was the
50:44
Speaker 1: singer who was his girlfriend. I believe it was Atlanta,
50:47
Speaker 1: but I'm sure you guys will correct me. Well, he
50:50
Speaker 1: foiled bankruptcy in two thousand and seven. Here's a good news.
50:55
Speaker 1: He got sober in the brain and he went turned
50:58
Speaker 1: to college and got a degree, and he's all about
51:02
Speaker 1: living his best life now. So God bless you. Man.
51:05
Speaker 1: I look a saint as a center that got up.
51:08
Speaker 1: We're all angels with dirty faces. You cannot have a
51:11
Speaker 1: rainbow without a storm. First, I applaud your comeback God
51:15
Speaker 1: bless you. Many people have not. I'm opposing the Counselors,
51:21
Speaker 1: a group of leaders from communities that are underserved in
51:26
Speaker 1: business and commerce and finance and real estate and faith.
51:30
Speaker 1: I've got a whole list of these folks that I
51:32
Speaker 1: trust that don't need the money from these athletes.
51:35
Speaker 2: We don't need a check.
51:38
Speaker 1: For professional athletes like Reggie Jackson, by Man, Bishop td Jakes, financiers,
51:45
Speaker 1: don People's all these people, the Russell family, these folks
51:49
Speaker 1: that I know who could become really good role model
51:52
Speaker 1: and mentors, Grant Hill. There's so many to these athletes,
51:57
Speaker 1: and we don't want a thing. We just want them
51:59
Speaker 1: to succeed. I'm going to put together this group called
52:01
Speaker 1: the Counselors and start trying to have conversations around financial literacy.
52:06
Speaker 1: Financial literacy is the civil rights issue of this generation.
52:09
Speaker 1: If you don't know better, you cannot do better. And
52:13
Speaker 1: to quote Anbassador Andrew Young, to live in a system
52:16
Speaker 1: of free enterprise and not to understand the rules of
52:19
Speaker 1: free enterprise must be the very definition of slavery.
52:22
Speaker 2: Let's know better, so we do better.
52:25
Speaker 1: Okay, here's a fan question the top off this incredible
52:29
Speaker 1: day of this highly needed podcast topic for everybody who
52:34
Speaker 1: wants to come up from nothing, who wants to go
52:36
Speaker 1: from the streets to the suites in professional sports, this
52:41
Speaker 1: segment was for you. There's a question on Instagram from
52:46
Speaker 1: a Vigra underscore code. What is financial literacy to you?
52:51
Speaker 1: It's when you know better, you do better, because it's
52:54
Speaker 1: what we don't know that We don't know. This killings,
52:56
Speaker 1: but we think we know what I've been talking about.
52:58
Speaker 1: This segment was no matter how much I love you,
53:02
Speaker 1: my son or my daughter, if I don't have wisdom,
53:05
Speaker 1: I can only give you my own ignorance. Out of love,
53:08
Speaker 1: we passed down bad habits from generation to generation. Out
53:12
Speaker 1: of love, we pass down ignorance. Well, you don't know better,
53:17
Speaker 1: you cannot do better. And if you hang around nine
53:19
Speaker 1: bro people, you've heard me say it time again, you
53:21
Speaker 1: will be the tenth. We've got to take the emotions
53:24
Speaker 1: out of our money and start understanding that we are
53:27
Speaker 1: all capitalists. The only choice is which form of capitalism
53:32
Speaker 1: you're going to choose? Pick up adopt six forms of capitalism.
53:36
Speaker 1: I cover that in another podcast episode. Go back and
53:41
Speaker 1: listen to it. If you don't think you're a capitalist,
53:43
Speaker 1: then you're on another universe because you're watching this on
53:47
Speaker 1: a device you paid for in a car, a note
53:51
Speaker 1: of what you pay for in a house or an
53:54
Speaker 1: apartment that you pay for with a job income that
53:57
Speaker 1: you pay for, and so on and so forth in
53:59
Speaker 1: a business income you've created. So we better get We've
54:02
Speaker 1: got to get smart about money. Financial literacy is the
54:05
Speaker 1: civil rights issue of the generation. We've got to go
54:07
Speaker 1: from the streets to the suites, from civil rights to
54:09
Speaker 1: building that with sil rights.
54:12
Speaker 2: Also, this is as important as the right to vote.
54:16
Speaker 1: That you know, it is entirely possible that this is
54:18
Speaker 1: an ambassador you unquote that having a seven under credit score
54:22
Speaker 1: just might be as important as a college degree. And
54:25
Speaker 1: I really want you to get your college degree. Everybody
54:28
Speaker 1: needs to have two courses, a financial literacy course and
54:30
Speaker 1: a computer course because the future is technology and money.
54:35
Speaker 1: If your data is not about God or love, your
54:38
Speaker 1: day is about money. John O'Brien, I'm out and it's
54:40
Speaker 1: makes smart sexy again. Money and Wealth with John O'Brien
54:57
Speaker 1: is a production of the Black Effect podcast Network. For
55:01
Speaker 1: more podcasts from the Black Defect podcast Network, visit the
55:04
Speaker 1: iHeartRadio app, Apple Podcasts or wherever you listen to your
55:08
Speaker 1: favorite shows,