When you’re struggling in your daily grind to earn those five solid figures you depend on and come home to watch March Madness, it is easy to envy professional athletes for the millions of dollars they earn every year for playing a game they love. But the unfortunate truth is that many athletes lack the financial literacy and wealth management skills to stay wealthy after their career is over. One avenue that has proven worth the investment for NBA players is venture capitalism.
Venture capitalism is a great form of investment for an NBA player who wants the flexibility and freedom to learn the business by partnering with other people to make it happen. A venture capital firm brings the money that a start-up needs to get off the ground in exchange for part ownership or stock value of the company. The more successful the company is, the higher rate of return venture capital investments command.
Two players, in particular, have stood out among venture capitalist ball players, Carmelo Anthony and Steve Nash. Although the investment style is attractive to many professional athletes, these two have been quite successful.
Carmelo Anthony, three-time gold medal Olympian and small forward for the Knicks, founded M7 in 2014 in order to get into venture capital. M7 is a combination of Melo and number 7, his jersey. His investments focus on digital media and tech startups such as Hullabaloo, a media company for children. Melo has already earned over $201 million in his 14 season career and will earn over $26 million for this upcoming season alone. Melo’s net worth is estimated at $90 million. His diverse holdings will set him up for financial success far beyond his basketball career.
Steve Nash, who retired as a Laker in his 19th season in the NBA, has made a number of investments in venture capital, some under the company he co-founded, Consigliere. Consigliere, now Bullish, invested in a number of projects such as Contently and Kiwi Crate. He has also invested heavily in the health industry, including supplements and the Vancouver Whitecaps Major League Soccer club. Nash also has a film production company. Nash earned over $144 million over his long professional basketball career and is still worth an estimated $95 million today.
Nash and Anthony both exemplify the idea of making smart investments and growing your money. They have both learned new skills and positioned themselves to start a new career after their time in the NBA is over. According to the NBA union, around 8% of players hit financial hardship within 10 years of leaving the sport. It can be hard to imagine blowing through hundreds of thousands or millions of dollars, but it just goes to show that having a lot of money does not always equal having a lot of success.
Whether you are just starting in business or you’re a seasoned pro, understanding the basics of money and personal finances will keep your money flowing for years to come. If you want help you can schedule a strategy session so that we can uncover why your finances are not growing the way you would like. You can also download the 10 Keys To Building Your Business and we’ll email it right over to you.