The Sports industry is a market in which people, activities, businesses, and organizations are involved in producing, facilitating, promoting, or organizing any activity, experience, or business enterprise focused on sports. And with sports, comes fame and money. We’ve probably ready great stories about athletes who’ve moved from rags to riches as well as we’ve seen a huge downfall of our athletes, who have had everything they could think of stripped away in the blink of an eye. They had all the worlds’ greatest things they could have dreamt of, but our sports clubs/teams are failing our Ladies and Gentlemen in the sports industry because they don’t give them the necessary tools to manage their money and newly found fame.
Today we’ll focus on the finances of pro athletes and retirees in the Soccer/Football industry. We have a lot of examples here in SA of Soccer players who were big and they had all they could ever dream of but they manage to lost it all due to miss management of funds and these are direct results of not having any idea of how to manage their newly found fame and wealth. In any event, everyone acknowledges that the finances of pro athletes and retirees are a source of serious concern. This is mostly due to a lack of financial education and the extremely poor background most of them come from. With no knowledge of how to manage the wealth they find themselves in, many gamble away this once in a lifetime chance and end up in incomprehensible financial hardships.
Being a professional soccer player is a lucrative career, with the top-paid players in the Major League Soccer earning between R1.3 million – 2.6 million as a base salary in the Premier League, meanwhile, the highest-paid soccer players will earn over R10 million a year. These figures are mind-blowing, to say the least, and can give the impression that soccer players will be comfortable for life. With two in five footballers going bankrupt, however, being savvy when it comes to financial management is crucial. Putting careful consideration into your lifestyle choices and investments is key to ensuring a stable future during your playing career and beyond it.
No matter what stage of life you’re at – whether getting by as a recent graduate or living the high life as a successful soccer player, budgeting is key to effective money management. You may be able to afford luxuries when your playing days are going well, but remember that it only takes an injury or accident and alcohol abuse for it all to go wrong; professionals like Mbulelo oldjohn Mabizela and Ronaldinho experienced this first hand. Soccer careers are short, and you need to have the right mindset when it comes to planning for your future. With this in mind, put serious thought into the essentials that you want to live with on a day-to-day basis and work out how much this will cost each month. Treat this as your budget for each month and save the remaining income
Soccer players are easy targets when it comes to making money. After all, they made their money from sports and are unlikely to have a lot of experience in accounting. They will be focused on training, performing well, and succeeding as a player. Advice from reputable financial advisors is therefore key. Spend the time to research reliable accountants and financial advisors who are experienced in their industry. Seek recommendations from fellow players and make the time to meet a few different people before choosing someone. There is a lot at stake after all
Invest wisely
Something a good financial advisor will do is guide players on how best to invest their money. Professional soccer players want to be able to focus on playing without the stress of needing to worry about the return on investments. Depending on a player’s earnings, it may well be that the financial goal is to maintain and protect a level of wealth; this can allow them to enjoy their career in the knowledge that they have enough money to live comfortably once their playing days are over. This might mean investing in property and renting it out or investing in a low-risk pension. Whatever players opt for, it is important to make sensible investments that will enable them to concentrate on soccer and manage the day-to-day pressures that come with it. It’s easy to think that professional footballers are set for life when it comes to money. However, in reality, only a very small percentage earn enough to be truly worry-free. Whatever one’s earnings, we all need to move within our means, and with high income often comes high outgoings. Given the short career of a soccer player, putting the time into planning for your future and managing your money accordingly is vital.