Eps 1: Smart money investments by football players
When players retire, and the million-dollar paydays halt, luxurious spending habits don't always call an audible to a more sustainable game plan.
Broyles offers a valuable lesson: make a financial plan that suits your means.
Broyles spent time in the offseason with New Orleans running back Mark Ingram teaching students about financial planning.
Host
Willard Wilson
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While NFL players earn an average of $1.9 million a year, as many as 15% of them end up filing for bankruptcy. Although they make far more money than their counterparts in other sports, NFL players spend more than twice as much as their counterparts in the rest of the world and go bankrupt for similar reasons.
According to a recent study by four researchers, this explains the high number of bankruptcies in the US professional league NFL and other professional sports. To make matters worse, the long playing careers of NFL players and their families do little to lower the bankruptcy rate. When players retire and the million-dollar paydays are stopped, luxurious spending habits require an audible and more sustainable game plan.
The game you have known and loved is more than just a football game, it is a business, a profession and a way of life for many people in the United States.
Many players are able to earn a second income outside of football due to the high cost of living and lack of affordable housing in the United States.
Patriots netminder Gronkowski has avoided becoming a bankrupt statistic by balancing his spending with certain revenue streams. In his autobiography, he explains his decision not to spend the millions in NFL salary he earned. It's good that Gronk is aware of his financial situation and how well he and his colleagues are saving. Only a minority of NFL couples live off football investments, but it's a testament to how well the players and their significant others have saved.
Instead, they rely on income from perks and appearances to fund their lifestyles and other sources of income, such as food, clothing, and travel.
Of course, stock selection in fantasy sports requires informed decisions about how assets, players, and companies will perform in the future. Whether it's a team, a player, or even a company, multiple streams of income can help secure finances both during working hours and in retirement, says Isaac Petersen, who runs a data-gathering company - driven fantasy choices for professional footballers.
In fantasy football, for example, that means predicting whether Baltimore Ravens quarterback Joe Flacco will play in the August draft. But smart forecasting and risk-taking can still be derailed by the unpredictability of the NFL and other professional sports leagues like the National Football League and Major League Baseball.
Watson says mastering takes time, which is why analysts typically stay in the same field for at least five years. And while consumer sentiment can play a big role in a company's market value, much more can go wrong.
If you are a permanent playoff qualifier in your fantasy league, or if you have a solid accounting background, these skills can help you make money in the market. In studies that measure the role of luck and skill, rewards are found in a variety of areas, such as stock market performance, profits, and earnings per share.
When you look at that, it's pretty easy to see the difference between putting together a stock portfolio and putting together a fantasy football team. Instead of using an investment fund with an annual return of 1.5%, you can rely on your team to beat the market every time you win, just as investment funds do.
If you invest time, even a fraction of that time, you can make hundreds of thousands or even millions of dollars in a short period of time.
In terms of diversification, Cronqvist recommends bonds that hedge against stock market falls and alternative investments that hedge against inflation. Share prices rise and fall, and while you can lose money in fantasy leagues, you won't lose money if you invest for the long term. Investing can be very rewarding if you pick good companies and make smart bets, even if share prices change.
During the questions and answers the professor spoke to, many of the stakeholders asked questions, including: "What is the best alternative investment in which you can invest your money, and what are some examples of alternative investments? Finally, he said that before his death, famous investor Warren Buffett advised him to invest in stocks, bonds, mutual funds and other alternative assets such as gold.
There is money in the game at the moment, and footballers work best when they put their money where their mouth is, but in other classes funding an uncertain lifespan is commonplace. NFL players: "I love people and I love football, so I'm going to be a part of it."