May 30, 2024 • 56 mins
This episode is for all the young dreamers! If you want to be a pro-athlete, or even an entertainer, always remember the business of the industry. John is digging into the do's and don'ts of big money contracts - especially the short term ones.
To learn more about John's Operation Hope initiative, visit: https://operationhope.org/how-we-help/credit-money-management/
See omnystudio.com/listener for privacy information.
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
Welcome The Money and Wealth with John ho'bryant, a production
of The Black Effect Podcast Network and iHeartRadio. Hey, Hey, Hey,
this is John Hope Brian. This is Money and Wealth.
I'm an entrepreneur, a businessman. I guess you can call
(00:22):
me a philanthropist. I've built the largest financial literacy organization
financial coaching organization in America, three hundred offices in forty
two states operation and the Hope. We have Hope inside
locations across the country. The only non profit allowed to
operate inside of a bank branch in US history. We
are also the coach for Delta employees, Delta Airline employees,
(00:43):
and UPS employees, and a lot of other companies. And
we're trusted by the government. Now, all that is important
for this next topic. This is going to be a
hot and popping podcast series. This is a primer for
everybody who wants to go into professional sports and God
bless you. Right, everybody should have a dream and everybody
should pursue it. I surely pursued mine. But when you
(01:06):
pursue that dream, understand that there's a business plan typically
behind the dreams at work, and it's the music business
or the business of music. In that example, I'll unpack
the music business in a separate podcast. It's also the
sports business, the business of sports, but folks don't tend
(01:27):
to take it seriously like that. So first up in
the trending topic, and I normally go easy on people
because I think that if you're working class and you
didn't didn't get the memo on money, well it's not
really your fault. It's what you don't know that you
don't know is killing you. But you think you know,
and no one taught to you, and you know, we
sort of, you know, come up. If you come up
(01:49):
black and brown in these communities, no one gave you
a financial literacy lesson. There was no resources there for you.
There was no there was no counselors, there was no
tax advisors. There was in your school teaching you these tools.
I got lucky at a financial literacy course when I
was nine years old. For those who know my story,
read my book which is now bestseller, Financial Literacy for All,
(02:12):
which I encourage you to get. By the way, to
go along with this podcast series as you talk to
your kids about going into professional sports. This is a
primer for everybody coming up through high school. Who wants
coming up through college, she wants to become a professional
athlete in any sport Tennis, golf, football, baseball, basketball, hockey.
(02:35):
It doesn't matter what the sport is. If you're trying
to become a professional athlete as a career, or you
know somebody who is. You know somebody who's dreaming about
this as a career, they need to listen to this
podcast episode, all of it, and they need to read
this book, Financial Literacy for All, which debuted on the
USA Today National Bestseller List, the top non fiction book
(02:58):
on the list, number twelve of all Books Publishers Weekly
bestseller lists, and it's still on the Amazon Global bestseller
list for under economics and Business number one. Financial Literacy
for All. It is a kitchen top conversation starter and
a primary market up.
Speaker 2 (03:15):
Go through it, have this conversation.
Speaker 1 (03:17):
Okay, let's now get into this very important topic. This
is the trending topic this week.
Speaker 2 (03:28):
Again.
Speaker 1 (03:28):
I normally go easy on folks, but I'm going all
in on this gentleman because he should know better. And
Bassador Andrew Young, this is not somebody making thirty thousand
dollars a year who didn't get the tools, didn't have
the tools, couldn't reach out to somebody to get to
access to tools. It is somebody who had access to
everything and threw it away, ignored it. And Bassador Andrew
(03:51):
Young says that men and women fail for three reasons. Arrogance, pride,
and greed. I don't know the dude's greedy. I don't
know his story, and I'm not going to put that
on him. I know he was arrogant and put a pride,
and I think stupid, if not stupid, he made stupid decisions.
Speaker 2 (04:09):
And it's not my opinion.
Speaker 1 (04:11):
I'm just looking at what i'm seeing and then telling you,
as a result of that, what happened. And this is
a slow moving train wreck that's been in play for
two or three years. I'm talking about Antonio Brown, who
may have twenty twenty four after eighty eight million dollars
of record earnings in the NFL, eighty eight million dollars
(04:34):
of more than a dozen years. I think it's a
dozen years playing in NFL foul for bankruptcy Protection Chapter eleven,
with fifty thousand dollars of assets or less, owing three
million dollars to creditors, which included some dude that he
got to scuffled with and heals him one point two
(04:54):
million dollars a moving truck driver who sued him after
Antonio all to them or something.
Speaker 2 (05:00):
What crazy, You're an NFL player, Why are you assaulting somebody?
Speaker 1 (05:04):
But it also includes things like credit cards and money
to a marketing firm and a law firm. What the
heck you made eighty eight million dollars? And this gets worse.
This guy, who is a Hall of Famer says this
on his own media company website. I can't get it
(05:28):
out of my mouth because you're filing bankruptcy and you
have a media company. Okay, just this is what they
released in their own words. NFL legend. That's what they say,
NFL legend Antonio Brown. He is a legend about to
be for the wrong reason. It's fouled bankruptcy. Today, he
will be a first ballot Hall of Famer in twenty
(05:49):
twenty seven. He will be releasing new music this summer.
That was not me riffing. I'm reading you the statement
this is.
Speaker 2 (05:59):
It gets worse.
Speaker 1 (05:59):
By and he is the founder of the most trusted
source in all of sports. What are they smoking? I
guess I have a right to my opinion. This is
my opinion. I'm not judging anybody. I'm just saying this
is irrational.
Speaker 2 (06:15):
Again.
Speaker 1 (06:15):
NFL legend Antonio Brown has filed bankruptcy. He will be
a first ballot Hall of Famer at twenty twenty seven.
It says he will be releasing new music this summer.
This is the same sentence your Hall of Famer. Your
claim to fame is the NFL, but your statement when
you file bankruptcy as you're releasing music this summer. He's
also the founder of the most trusted source gets worse
(06:38):
or better better you look at it, the most trusted
source in sports really the just how bankruptcy And I've
never heard of this company that's called ct SPN network.
(06:58):
In fact, is a company might want to sue you
because that sounds a lot like another name. Anyway, that's
not my business. He can't go to the law firms.
He owns law firm money. This is just ridiculous. And this,
let me tell you how incredible this guy's career is.
Brown was drafted by the Steelers in the sixth round
in the twenty ten NFL Draft. Spent most of his
(07:18):
twelve years career in Pittsburgh. He saw a lot of
success as a seven time Pro bowler and even won
a Super Bowl ring with the Tampa Bay Buccaneers. Isn't
that where Tory's shirt off, walked off the field, ran
off the field like a lunatic. That's all I remember.
And that's when I said he will go broke that moment.
(07:39):
Whenever you make an emotional decision, it's a bad one.
That was a highly, highly emotional decision. And I guess
he played and while he took his game, his shirt
off and left the middle of the game against the
New York Jets, that's when he was I think with
the Tampa Bay Buccaneers, he's made over eighty million dollars.
He's broke. What else is there to say? But my lord,
(08:04):
now let's get into something more productive. This is John O'Briant,
and this is a serious conversation about professional athletes and
(08:28):
those who want to be a professional athlete. This is
not me picking on anybody. The examples I'm going to
give is I walk you through what happens when you're
not financially literate and you don't take this seriously as
a business, a trade, a career, a profession in your
one shot to get the rest of your life completely right.
(08:49):
It is three, five, maybe ten years to set up
thirty fifty as much as you know, seventy additional years
of your life if you live to ninety, eighty, ninety
or one hundred.
Speaker 2 (09:03):
Uh, this is gonna have to last year.
Speaker 1 (09:05):
And this sort of gladiator since that, this Superman, since
that I'm Gonna be okay, has gotten a lot of
people in a lot of trouble because it's not you know,
they're not gonna They're not gonna be okay. Sixty to
seventy percent of all professional athletes.
Speaker 2 (09:22):
In the NFL and the NBA.
Speaker 1 (09:24):
I'm I'm talking about, by the way, tennis, I'm talking
about black and white. By the way, black people and
white people, you know, from all racio socio economic situations.
I'm talking about immigrants and you know, and non immigrants.
I'm talking about all sports, hockey, football, baseball, basketball, tennis, everything, right,
(09:46):
the same examples apply. While there's some good news here,
the sixty to seventy percent of all professional athletes from
NFL and NBA foul for bankruptcy and or broke within
five years after retirement.
Speaker 2 (10:01):
And I hate to say it, typically.
Speaker 1 (10:04):
Their wives step leave, they end up in bankruptcy, bankruptcy
and with a broken marriage because the party is over.
Speaker 2 (10:16):
Now, I encourage you.
Speaker 1 (10:18):
Guys to ladies to watch a documentary series that sort
of inspired me to do this.
Speaker 2 (10:23):
I've been thinking about this for a long time.
Speaker 1 (10:25):
And Operation Hope is a partner with the NFL on
one of their programs that helps with financial fluency and
communities and supported by the NFL. And Financial Literacy for
All involves both the Commission of the NBA and the NFL.
I know they're deeply concerned about this. Roger Goodell, a
friend of mine, I know he's deeply concerned about this.
My friend Tony wrestler in business partner owns the Atlanta Hawks.
(10:47):
I know he's very deeply concerned about this. But they
can't force somebody to not be intoxicated with their success
and force them to focus on right decision making in
their lives. And there's other people who don't want you
to focus on right decision making because they want to
(11:07):
separate you from your wallet.
Speaker 2 (11:09):
This.
Speaker 1 (11:10):
I want you to watch this Netflix show Broke. I
want you to pick up this book, Financial Literacy for All,
which is a national bestseller in the country USA daid
number one nonfiction, number twelve overall when it came out,
Publish This Weekly saying it was a top nonfiction book,
(11:33):
still number one on Amazon, and several categories business, econologies, etc.
Speaker 2 (11:38):
In the world financial literacy for all.
Speaker 1 (11:41):
This is the primer I want you to open up
and talk about with your family every week in sort
of a kitchen table economic conversation.
Speaker 2 (11:48):
And certainly if you have kids.
Speaker 1 (11:50):
That want to go and be professional athletes, I want
them to understand that this is the business of sports.
It's the sports business, and you are the head of
this corporation. And if you don't realize it, people are
going to separate you from the money that you may get.
The money has last you for the rest of your life. Okay,
(12:12):
let's get into this. This is about money. It's about
going broke and building wealth in pro sports. And or
let me give you one success story off the top,
because unfortunately a lot of these examples I'm about to
give you are not very positive. And my middle name's Hope,
but I can't make this stuff up. But this is
(12:32):
the facts of the matter, and I really need those
who love, those who want to be professional athletes, and
I encourage you to pursue your dreams. Whatever it is
I pursue. Mind if you want to be a professional athlete, fantastic.
But I want you to go into this with your
eyes wide open. So parents, sit your children down, young people,
send your friends down. Aspiring high school college athletes, sit
(12:56):
yourself down. Girlfriends, sit your boyfriends, boyfriends and your girlfriends down.
Everybody sit down and listen to this. Give this to somebody,
encourage him to take less than an hour to save
pain for the.
Speaker 2 (13:13):
Rest of their life. Good news.
Speaker 1 (13:16):
My brother, Reggie Jackson, who we know is mister October,
played a very successful hand in the Major Baseball League,
Major League Baseball, and is incredibly successful as a businessman.
And I went and cut the ribbon to his most
recent car dealership that he opened here in the Southeast.
(13:38):
I believe it was a Honda dealership, if I'm not mistaken,
with a great partner, a great brand, and it's doing
extraordinarily well.
Speaker 2 (13:47):
And so he's made more money.
Speaker 1 (13:48):
Really much more outside of professional sports than he did inside.
Speaker 2 (13:52):
And I can give other examples of that.
Speaker 1 (13:56):
But I want you to now listen very carefully. You
got a laugh to keep him crying here, And I'm
not laughing at any of these people. I'm not making
fun of them. In fact, some of these are tragic stories.
This is the facts. Once the glamour in the glissess
washed away. Here is the reality of being a professional athlete,
(14:20):
a gladiator at the top of your game. His podcast
is for every high school student the family of Saying,
who aspire to become arofessional athlete. Ricky Henderson got a
one million dollar check and when he got this check,
the league realized after several weeks that it hadn't been cashed,
(14:42):
so they were concerned.
Speaker 2 (14:44):
So the league got a hold.
Speaker 1 (14:46):
Of Ricky's manager and Minnie Rickey's manager got a hold
of him and said, what's going on? Are you okay?
What happened? Did you get the check? Yes, I got
the one million dollar check. What happened to it? Why
didn't you cash it?
Speaker 2 (14:58):
Well?
Speaker 1 (14:59):
I framed it, he said, he framed it. The original
check never cashed it. Now, if you walk in my office,
I have a million dollar check on my wall from
Henry Cravis. It was a million dollar check. It came
to me over breakfast from my philanthropy operation Hope and
I was very thankful for it. I'm very proud of it.
And I made a color copy of that check after
(15:22):
I cashed it.
Speaker 2 (15:24):
What's on the wall.
Speaker 1 (15:25):
If you want to go break in my office and
take it off the wall, knock yourself out, that's a
color copy. You'll go to jail for fraud as you
try to go to the bank to cash it. By
the way, do you know that you a check is
not nearly necessarily a check? You know that you can
write routing numbers and a checking hand number on the
back of a T shirt walking into a bank and
(15:47):
technically they have to cash a T shirt. Now they
probably won't, or a lot of reason security, whatever, But
technically that anything that you have the proper information on
can be a form of a payment.
Speaker 2 (15:58):
Doesn't have to be a physical check.
Speaker 1 (16:00):
That's just a structured way of transfer deferring your money
from one person to another, yours to somebody else. But
you can write a check on anything, again, including on
the back of your T shirt, if you have the
right information. That's just a fun fat But Ricky Henderson
needed financial literacy. Magic Johnson, here's a positive story. Magic
(16:21):
Johnson made more money off the field, and really the
first pro athlete to do this. He made six million
dollars in nineteen eighty nine. Away from the court, I
know I'm not very well. We're friendly with each other,
so I'm not boosting for him. I'm just saying the
brother deserves credit where credit is due.
Speaker 2 (16:41):
He has built a.
Speaker 1 (16:42):
Business empire off the court that is to be admired.
And somebody who had become friendly with Alex Rodriguez has
actually mirrored Magic Johnson's approach. And when Magic Johnson was playing,
when he first signed up, he would find the people
(17:02):
who had the front row seats on the games. He'd
go in his uniform and befriend them. And when he
found out the ones that were business leaders, he asked
them for their card, would call them the next day
and said can I come see you for breakfast or lunch.
Of course they would say yes. They idolize the Magic
Johnson and that's why they were there at the game. Well,
(17:24):
he wanted an audience with them so he could learn
about business. And you need to know that a lot
of my famous friends in the arts and professional sports
and music people want to be them. They want to
be a business person. They're calling me asking me for
advice because they understand it's the music business, it's a
(17:44):
business of sports, it's a business of music, etc. And
this is what I want you to really get your
hands around, is that Magic Johnson went as soon as
he had that door open as a professional athlete, immediately
use the credibility to get him into the doors of
the business people. So you can understand how to doe
just to make some money, but how to keep it
(18:07):
and how to grow it. You've heard me say it
time and again. You make money during the day. You
build wealth in your sleep. Making money during the day
is what's called making a living. That's literally what it's
called making a living, but it's not making a life.
It will run out when the checks stopped, the money
will run out, right, So I need for you to
be in a situation where you can make a living
(18:29):
and a life, make money during the day, build wealth
in your sleep, which means you need assets, and those
assets cannot be on your.
Speaker 2 (18:37):
Ass. Okay.
Speaker 1 (18:40):
Alice Rodriguez did the same thing, basically following Magic's model,
and he also has made more. Well, I'm sorry, I'm
not saying he made more off the court than on
I know his net worth succeeds what he made on
the court. But he made a lot of money on
the court, but he did extremely well for himself in
real estate, primarily the business that I'm also in. Again,
(19:00):
I known enough to what he's told me personally, is
that he literally modeled Magic Johnson and when going into business,
endorsement deals, et cetera is what Magic In Rodriga and
Alex Rodriguez did in real estate. For Alex, the minimum
wage in nineteen seventy in professional sports was about fourteen
(19:25):
thousand dollars, so this money really ran up. The average
salary of a Major League baseball player in nineteen sixty
seven ish was about nineteen thousand dollars. By twenty twelve
it was three point two million dollars. So that's enough
to get anybody's eyes big as turnups, right, So I
understand why people floss. I understand why people get sort
(19:47):
of carried away by all this. And you got twenty
year old player who you know, maybe broke, so you're
so poor, can't afford the o R this Pope po.
I understand you get some money, do you not having
twenty thousand dollars and now you've got twenty million.
Speaker 2 (20:03):
You're probably gonna go Craig crazy the first year. I
get it.
Speaker 1 (20:07):
But but have some crek, create money and then set
your life straight. Read this book. Understand the taxman is
going to take their peace. Understand everybody wants to buy
their mother a house in a car and a truck
for their dad. That's like the you know, the play
the playbook for UH for aspiration and you should all right,
but you need to budget these things into categories and
(20:32):
and don't go crazy. And there's the bling factor, and
then there's a posse factor. All the folks that you
want to take from the hood with you to success,
do not do.
Speaker 2 (20:41):
That that will make you broke. Don't let guilt.
Speaker 1 (20:46):
I mean, you're not responsible for everybody in the neighborhood,
and whether they did well or not is your hustling
on that on that court. That doesn't mean you're selfish
and don't support people, but don't hire them as employees.
Call it what it is, philanthropy, right, have a little
philanthropic charity fund and when people have an emergency under
(21:07):
certain criteria, they can tap it once a year and
that's it. But really helped set people up in business,
give them a hand up, not a handout. Send him
a college, right, send him to trade school. But don't
just put them on your payroll, because when the money,
your money runs out, they still want their paycheck and
they can't give you anything.
Speaker 2 (21:25):
You've given them money, they can't give you money in return.
Speaker 1 (21:29):
But I'm getting ahead of myself, way ahead of myself.
You can see how passion I am about this topic.
The average NBA salary in nineteen eighty four was about
three hundred thousand dollars, and by twenty ten it averaged
about five million dollars.
Speaker 2 (21:44):
Michael Vick, here's another one for you.
Speaker 1 (21:47):
You had a really smart guy, I'm told, of course,
very talented, one hundred million dollar contract.
Speaker 2 (21:53):
He went bankrupt.
Speaker 1 (21:55):
His so called financial advisor was convicted for running a
Ponzi scheme out of her home, and then after that
another one was convicted of running upon not a pon
the scene, but fraudularty for having fraudulent transactions transactions on
Michael's dime. So you've heard about the stuff that Cathol news,
but you probably didn't hear that two financial advisors of
(22:17):
his robbed him right in front of him, of people
who managed his own money, I manage my own money.
I encourage you to manage to manage yours. Right, you
make it, manage it. Do not say, oh, I'm not
interested in that. No, you want to do all the
boring stuff about who, what, where and when when about
your money?
Speaker 2 (22:36):
You want to do that yourself.
Speaker 1 (22:38):
You can have advisors and all this stuff, but you
want to count your own money. Bart Scott cash his
first NFL check at a check casher. He said they
laughed at him when he did it. These are not
my words, these are These are the player's words. So
I'm not trying to humiliate anybody. Actually thanked them for
(23:00):
being so honestly that you can understand that this game
is serious because a lot of these guys never recovered.
There was the million dollar checks, of five million dollar checks,
the five hundred thousandars signing bonuses, a ten milli dollars contract,
whatever it was, that was it. That was the most
morning they were going to ever see in their life.
And when it left, it was gone. Money has velocity.
(23:23):
You rich comes from a contract like the contracts I'm
talking about here, and that money comes in it and
through your hands, it has velocity. It's going to go somewhere,
and it's either going to go to appreciating assets or
depreciating assets or nose asset at all.
Speaker 2 (23:39):
Just out the.
Speaker 1 (23:39):
Door, right and when it's gone, it's gone and you
can't get it back. The first big shoe deal was
Magic Johnson. He did a two and a half million
dollar shoe deal over five years five years, and Chat
did a three million dollar shoe deal over several years.
And Tiger Woods did a forty men dollar shoot deal
(24:01):
over five years. Getting off the court money very smart.
Lebron ultimately did it in two thousand and three. This
is two thousand and three. Now did a ninety million
dollar shoot deal with Nike Ken to becoming the This
is like becoming a CEO of a corporation before you're
ready to.
Speaker 2 (24:21):
Do the job.
Speaker 1 (24:22):
And some people navigate that and some people they just
lose their everlasting mine and never and by the time
they wake up from the dream or the party or both,
it's a nightmare. The money's gone, and the friends are gone.
So called friends are gone, the ladies are gone. Everything's
gone except the bills, which lasts forever. Ron James is
(24:44):
a great example of somebody who understood he was a
corporation and responded accordingly and didn't make emotional decisions, as
best I can tell, made passionate decisions and intelligent ones
and thoughtful ones. And his story is still being told.
Of course, we all know Magic the Air Jordan's I'm
sorry and what he did in the fact that he
(25:04):
actually got ownership in the brand he had created, so
he said to get that money. I believe it's five
percent of all sales for his brand for the rest
of his life, for the rest of the brand's life.
Brilliant Leon the seriously if I'm saying that right.
Speaker 2 (25:22):
Sea r c Y, an.
Speaker 1 (25:24):
NFL pro, said he was in a car with a
jewelry guy and the jury guy was in the back seat.
He was in the car and he had given given
a jewry guy fifty thousand dollars for some jewelry which
probably was not worth more than eight thousand dollars. I
might add, try to sell it back to the jeweler
and they will buy it for a fraction of what
they sold it to you. Anyway, there's another NFL player
(25:45):
in the back seat who was trying to outdo Leon,
and he wrote a check right all in the spot
for two hundred and fifty thousand dollars and handed it
to the jeweler. The only person how smart in that
car was a jeweler that Juliet walked off for three
hundred thousand dollars, and probably the real cost of goods
sold for him was probably twenty thousand dollars, less than
(26:09):
ten percent of the money that he collected for this custom,
not all that valuable jewelry that bleamed but and singed,
but did not ring the bell at the bank account
or the asset fall at the end of the day,
making it rain. Is strip clubs. This is legend with
(26:30):
pro athletes, you know. Most people start with the dollars
two dollars. These folks, you know, founded it as a
source of pride and a sense of their own importance
to be able to throw one hundred dollar bills.
Speaker 2 (26:42):
They still do this.
Speaker 1 (26:44):
It was a way for them to distinguish themselves amongst
themselves and from the average show of the club. And
girls would come into the locker rooms, I'm told, and
they would sell custom soup packages. Now they made sure
that there were ladies doing the selling the custom suit
packages for a suit and some shoes and a tie.
(27:06):
I'm gonna say, raggedy tie and some worn out shoes
and a not so valuable fabric. Of these suits was
fifteen thousand dollars. This was, by the way, this is
years ago, fifteen thousand dollars. And the Grand Slam package
in the baseball locker room, the Grand Slam package of
(27:27):
three to four suits, wow, was.
Speaker 2 (27:29):
Fifty thousand dollars.
Speaker 1 (27:32):
I just can't, I just can't hold it together, just
robbing you in broad daylight. By the way, these the
locker room as supposed to be off limits, so let's
put that aside. Evander Holyfield bought a one hundred acre
property near where our home is for our family property
in Greater Atlanta. Bought one hundred acres and built a
(27:57):
fifty thousand square foot home. Yes, I said that right,
fifty thousand square feed home with two bowling alleys. Why
wasn't one bowling alley enough one hundred and nine rooms?
I believe it was. And I'm gonna come back to
this part of the story the minutes. We'll hold on
to that now. Of course, Evander was a boxer, so
that's another sport. He made a mint boxing, and when
(28:19):
you think about these boxers today, and it's one in
Las Vegas who I've said is going to have very
serious problems that he keeps taking a jet for himself
and a jet for his girls, and another jet for
his friends, private jets flying around the world. I don't
care how much money you make, you can go broke.
People say, oh, it's no way he's gonna go broke. Yeah,
he wears one pair of shoes and then tosses it. No,
(28:41):
he's gonna go broke. Right, But so here's here's a
great example or a bad example. Really, Evander Holyfield. NFL
players spend the most money because what I'm told, because
no one see them under their helmet, so they they
sort of go out of their way to floss. And
they're the ones who really make it rain and write
(29:02):
the checks in the clubs and do the bottle service
and all that stuff. Pro golfer John Daly, who is Caucasian,
for the purpose of making sure that everybody knows that
this the pain is equally distributed here lost fifty million
dollars gambling million. Charles Barkley said he lost ten million
(29:23):
dollars gambling. Charles was smart enough to be multi talent,
then he's still working to this very day off the
court was extremely valuable, extremely.
Speaker 2 (29:34):
Well.
Speaker 1 (29:35):
It has a net worth and a and a brand.
So he can, I guess afford to lose that ten million,
but I know it hurts ten million dollars. Okay, how
much money you make. It's a lot of motive. Keith
mccantz of the NFL's somebody. I want you to do
some research on Andre Rison, our son of the NFL.
(29:57):
Somebody gonna come back to this story. This is somebody
you might recall, had the hip hop girlfriend and they
brought down their house, his house in Atlanta.
Speaker 2 (30:08):
Hold on to that story. We're going to come back
to that.
Speaker 1 (30:13):
So it contracts NBA and baseball contracts are guaranteed. You
may not know those are going to be football players.
And again I'm not discouraging you. I want you to
pursue your dreams. NFL contracts are not guaranteed. Only the
signing bonus is guaranteed. Now there's of course exceptions to
all these rules, but generally speaking, that contract is not guaranteed. Worse,
(30:37):
athletes paid the top tax bracket, while a hedge fund
manager or a real estate entrepreneur pays twenty percent or less.
Which called capital gains tax even less because they've got
a big corporation and tax people and lawyers who are
working to figure out this deduction and that deduction and
this tax right off and that. So a hedge fund manager,
a private equity person, a bank or a financier, real
(30:59):
estate person, and entrepreneur like me has staff people and
professionals who are working all the time for them to
maximize their tax benefits under the law. Where these players
are just a corporation of one again their CEO before
they're prepared to be one. They're writing a check at
the highest tax bracket.
Speaker 2 (31:18):
And you may not know.
Speaker 1 (31:19):
You may end up playing taxes in multiple states and
taxing districts because you're getting paid every week and your
and your baby tax based on the place you're playing.
Isn't that crazy? Darryl Strawberry went to prison for not
paying taxes. Yeah, I'd rather owe my mother God rest
(31:40):
her soul than than to owe the I R S.
I mean that that that's not something to play with.
The gangster al Capone did not go down because of
murdering mayhem. He went down because of tax evasion. Do
not play with the I R s and and don't
don't be a don't be angry about it. You know
(32:01):
you made the money, you'd be happy to pay taxes.
Speaker 2 (32:05):
I mean you made a lot of money. I means
you're doing extraordinarily well.
Speaker 1 (32:07):
You just want to make sure you're maximizing the legally
available tax benefits to you, which means you needed professionals
that you can trust, who are credentialed and have good,
unimpeachable credentials that can give you great tax.
Speaker 2 (32:22):
Advice around allowable deductions and things like that.
Speaker 1 (32:28):
In the NFL, you are paid over a six month period,
and you're paid on a pro route period over that
six months. You've got to then budget yourself for the
rest of that year so the money will last. Literally,
it's paycheck to paycheck with a bunch of zeros next
to it. So you get paid for six months. Now
you've got to self manage yourself for six months. Imagine
(32:49):
how tough that is for somebody who's newly rich and
thinks some money's gonna last forever. Daz Bryant, the Easy
DZ Bryant once picked up a fifty six thousand dollars
bill at a restaurant. I just can't imagine when I
get a thousand dollar bill if sponsoring folks, and I've
done very well, I mean I got an attitude, right,
(33:12):
a thousand dollars bill. I still remember every time I
paid a big bill in a restaurant. This dude paid
fifty six thousand dollars at a restaurant, and if you
plus it up on the taxes, that means that was
one hundred and ten thousand dollars check before he paid
taxes he paid, So it's one hundred ten thousand dollars
for earnings, right but once and then you pay taxes
(33:33):
on that because you're the highest tax bracket. So the
net was fifty six thousand dollars for a meal. That's
gonna go away. You'll never see it again. He went broke.
(33:53):
Here's some bad business business deals and bad businesses, and
a lot of athletes, for some reason, seem to be
attracted to like you know, a magnet. The metal car washes,
stripper pole businesses inside of houses. Don't ask me about this,
I don't know, but the portable stripper pole businesses or
people wanted to put stripper poles in their houses a
(34:13):
big business. And that's people have done athletes have done that. Restaurants.
There's nothing wrong with restaurants and clubs, but they're cash businesses.
You've got to be there. You can't play, you can't
you know, sample your own product. Right, he's being eating
up all the food and drinking all the drinks. It
has to be serious business, but a lot of these
things are just socially attractive to athletes. Car washing, strip clubs, clubs,
(34:36):
financing movies, financing record labels.
Speaker 2 (34:38):
So you have heard her.
Speaker 1 (34:40):
One of my trending topic this gud dude Antonio Brown
who just went bust. What's his big comeback? He's got
music coming out this summer. Hasn't he paid attention to
any facts that are out there for anybody to see.
That is a really bad move after you just filed bankruptcy.
But what he doesn't listen because the infybody out there,
if you really want to know, could call me. Yeah,
(35:02):
I'd be happy to talk to him for free. I
don't want anything for anybody. I'm good. This is free,
by the way to you. It's estimated that one out
of very forty business ideas you know, will work. So
what's the chances that your cousin bam bam is going
to have a great business idea. And when you ask
them where's a business plan and they say, what's that,
that should be a great signal that it is a
(35:22):
bad business idea and you should run as fast as
you can. Family and friends are the worst. Yes, I
said it all of a sudden. Everybody wants to be
your friend when you're rich and you're wealthy, and I
really know this, and it's heartbreaking the stuff that people
will bring to you, to your doorstep once you've made
a little bit of money, it's heartbreaking. You just feel
(35:42):
like you just feel used in a slot machine and exhausted,
and you cannot just go into this feeling like you
had to take the entire neighborhood with you or you
will go bro.
Speaker 2 (35:53):
You can help people, give them a hand up, not
a handout.
Speaker 1 (35:56):
One mother was upset with her son because he was
not doing what she wanted him to do financially. So
he became a pro, and she got so upset she
gave him a bill over twenty five thousand dollars. At
his party to celebrate his contract, she gave him a
bill over twenty five thousand dollars for raising him no,
(36:20):
I'm not kidding. That's completely serious, and it's very sad.
Money changes people. I've seen it. My mother had this
brilliant thing she did in her will when she passed away.
Whennia Smith got rest her soul, she worked an hourly
job for thirty two years. Wennida Smith did a great
job and had a net worth, you know, cumulatively with
all this, you know, sort of add up the money
(36:42):
she gave for different family members to do things, buy homes, whatever,
about a million dollars net worth. And she said in
her will it was a I call a poison pill
clause that said anybody who challenges his will will be
cut out of it. Mom was gangster. I will be
doing the same thing. I encourage you to have a
wheel first of all, and yes, do the same thing.
(37:04):
This is your intention. You made the money. No one
has the right to tell you how to spend it
or how to allocate it. It is your as long as
you're winning your right mind, it's your choice. And anybody
who challenges that will on the reel after you're gone
gets cut out of it. By by Felicia, another player
had had sixty mobile phone numbers assigned to him from
(37:24):
the phone company. The only problem was he only had
one phone. I'll let you figure the rest of that out.
People were just taking advantage of him and he was
paying the bill. He had six homes. He only lived
in one, but the other five homes were always posse
to crash. What he was playing on the field, They
were playing at the club or wherever. Why can't you
(37:45):
go to word? What were they doing before we became
became a pro athlete? Again, you cannot You cannot carry
everybody into their nirvana. Is it's a dream. They're going
to wake up and it's not going to be real,
and you're gonna wake up. It's going to be a nightmare.
Former number one tennis player in the world Sanchez Vicario
(38:05):
lost all sixty dollars.
Speaker 2 (38:08):
Of her fortune to her parents.
Speaker 1 (38:10):
The photo you see of them is parents kissing them
on her in the chee cheeks. Is so loving, so sweet. Yeah,
while that they had their hands in her pocket and
took every dime she had, she's broke. There was something
called the ball or alert, Yes I said that, and
(38:30):
it alerted women that when ballers basketball players were going
from the courts to a club or wherever, the women
would get and there were seven thousand MILLIONALSS lists would
get a text message of where to show up. Okay,
I won't go any more on that child support drama.
(38:52):
Holyfield had to pay for child support for eleven children
from nine women. That's this is an absolute way to
go broke. You got to take the care of these
children for eighteen years. Your career will last three years,
five years maximum ten years on average three to five years.
Where's this money coming from? A fifty thousand, thirty thousand,
(39:14):
twenty thousand, eighty thousand, one hundred thousand dollars a month
for child support payments? That's not including your other bills.
How's that sustainable? And you can't just turn it off there?
These are real, live people. This is a relationship. You
created a life, you brought in this world, and you're
responsible for him or her or both. Holyfield had eleven
(39:36):
children from nine women. Travis Henry from the NFL oh
seventeen thousand dollars per month woof in child support for
nine children from nine women.
Speaker 2 (39:48):
He could not pay, went broke.
Speaker 1 (39:51):
NFL has the biggest injury's highest pay in the shortest
career co SAR. Another player got a seven year twenty
s six million dollar contract.
Speaker 2 (40:01):
Yay.
Speaker 1 (40:03):
A few weeks later, he got a twenty thousand dollars
see you later from the Cleveland team that he had
signed with.
Speaker 2 (40:09):
Something happened they could let him go.
Speaker 1 (40:11):
I told you, NFL contracts basically a version of at
will again. This is a great things. I'm not down
in the NFL again. I partnered with the NFL. I
know a lot of people who've done extraordinarily well at
NFL players, but that's because they looked after their money,
and they knew the contracts they signed, and they didn't
play around with this opportunity. They treated it like it was,
(40:32):
which is once in a lifetime gift. Tarrell Owens, NFL star,
went from rich to zero. Major League Baseball player Lenny
Dykstra went from being worth fifty eight million dollars to
a bank account of fifty thousand dollars.
Speaker 2 (40:50):
What's this?
Speaker 1 (40:50):
What is fifty thousand dollars number? Tonio Brown same thing,
fifty thousand dollars in assets. He had thirty one million
dollars in assets at one point is bankrups filing? He
had fifty thousand dollars and by the way, he went
to prison NFL star Warren Sapp dead broke. Major League
Baseball star Kurt Shilling put thirty five million dollars into
(41:12):
a video game business. Se would you see a trend here?
It's like it's like adult kids, right, but yeah, it's five.
These are toys. But you can't invest all your money
in a toy. Where's the real estate? Where's the you
need a where's the accounting business or the law firm
you started up, or the you know, I mean a franchise.
Speaker 2 (41:34):
You know, somebody with a proven business plan.
Speaker 1 (41:37):
You know, twenty McDonald's that you want to own, or
Burger Kings or whatever. Right I mean this, Okay, anyway,
you know where this story is going. You put thirty
five million dollars, but video game business ended up upside
down fifty million dollars broke. He had twenty two million
dollars in assets and owed one hundred and fifty one
million dollars. Latree Spreewell earned one hundred million dollars and
(42:02):
famously turned down a twenty one million dollar extension, saying
this someone was as bad as Antonio Brown, maybe worse.
It's maybe worse. Actually, he actually said he turned out
a twenty one dollar contract extension because he quote had
a family defeat.
Speaker 2 (42:21):
He went broke.
Speaker 1 (42:22):
One hundred and ten million dollar made in fifteen NBA
seasons with Antonio Walker, and he's working through trying to
come back. Right now, Allen Iverson squandered two hundred million
dollars in his NBA career. This is eyewatering. These are
I piercing numbers. Two hundred million dollars. Now, I told
(42:44):
you where the career and numbers started and how they
racked up. So when Reggie Jackson, my brother Reggie, when
he was coming up, it was not the biggest those
were not That wasn't the time when the biggest paychecks
were coming through. And my brother, not my brother, but
my friend Billy Are and her late husband and Hank Aaron.
He didn't the home run king. He didn't make a
fortune in baseball coming up, but he made a fortunate
(43:06):
new business owning BMW dealerships and doing endorsement deals and
doing business deals.
Speaker 2 (43:11):
I mean just brilliant as a businessman.
Speaker 1 (43:13):
He understood, they all understood this was a shot to
turn an income into an asset, a temporary moment, into
a career of lifetime sustainability and quality of life. I'll
get to what to do here in a moment. NFL players,
it's comedy. Sell their Super Bowl rings when they get
(43:36):
in trouble. You can go on the auction networks in
eBay and see Super Bowl rings for sale. Mark Brunnell
in twenty eleven lost fifty million dollars. Remember that story
I told you about Holyfield who has a house near
our home. Well, it was one hundred acres. He lost it.
(43:57):
He owed twelve million dollars at the time one hundred
and nine room home worth at the time nine million dollars.
I think he ended up selling it under distress for
five million dollars to a rapper who has it now.
And I hope that he is managing his affairs properly.
He seemed to be floss into. But that's I'm not
(44:17):
gonna get into. This is a professional sports. I don't
know his story all right, so I wish him well.
Leon Searcy retired from the NFL in two thousand and
two after ten years. He's a sales rep for a
software company today. After ten years, what I want you
to do is take five years with an income to
(44:39):
figure out you're going to live on it for fifty years.
So let me give you a quick investment, one on
one situation. If you put two and a half million
dollars in the bank and it gets ten percent average
return from the stock market, and when you have a
pie here of what to do with money. Private equity
on Wall Street means something different than private equity on
(45:01):
your street. A lot of these guys are doing private equity,
meaning they're investing in the strip club and the restaurant.
The thing I told you about the silly stuff. Private equity.
That's where most of the money is going to the
things of their own, their own ideas, most of which
don't work because they're not financially illiterate, not because they're
(45:21):
not smart people. They're obviously breeding the talent. They're professional athletes.
But that doesn't mean you're a great investor. So I
want you to have most of that insecurities publicly traded
stocks on the stock market through proper brokerage firms with
proper advisors. In that regard, I use Rockefeller Capital Management,
as in the Rockefeller family. But you can, you know,
(45:43):
but I still pay attention to everything, even though I've
got somebody handing my business. Also used Wells Fargo to
a few others. Right, So I want you to have
a securities portfolio. I want you to have real estate, right.
I want you to have some stocks and bonds. You
can also have some gold or whatever is and that
you know, if you want to do that natural resources.
And if you have a look you want to take
ten percent, do some crypto or whatever. Knock yourself out,
(46:06):
but don't don't use your wrint money. And it should
be five percent for private equity, not fifty five percent,
not eighty five percent for our hood version of private equity,
which is pooking them in some crazy idea for a
business that they want you to finance, and they've never
been a business person in their life. So if you
(46:26):
have two and a half million dollars, that'll return about
two hundred and fifty thousand dollars a year, which should
be enough for remote they have most people to live
on in retirement. If you have five million dollars that
you've made, again, these people made thirty million, forty million,
fifty million, one hundred million dollars contracts. I'm not talking
a lot of that money. Five million dollars of that
ten percent return on your stock portfolio is five hundred
(46:48):
thousand dollars a year. That's a lot of passive income.
That's a lot of money to chill once you're retired,
and that's for the rest of your life. Don't never
touch the principle you want to live off the interest. Okay,
everybody watching this, tell the young person who has short
attention span to go to this point of the audio
(47:10):
the podcast and just listen to what I just said
to them. Take a principal amount of money, do not
touch it. Do not touch it. Put it in conservative
boring stock right, the same stocks that are building my
billionaire friends. Put it in right best the biggest and
best companies in America and the world that are proven track,
working for profitability, et cetera. And don't touch the principle.
(47:33):
In fact, you want some stocks to have a dividend payment,
meaning they pay a return on their earnings to their
shareholders in a fee. But you should be able to
get a ten percent eight to ten percent average return
five eight something north of five percent.
Speaker 2 (47:49):
Five.
Speaker 1 (47:50):
You know, bonds will give you that five eight ten
percent return on your stock portfolio. And if you have
five million dollars in there, that's half million dollars a
year and a budget to live on a half million
dollars a year for the rest of your life and
any money else other money you make outside of NFL.
You've got businesses, or you want to do some side
thing or go work for corporation, well that's extra money.
Speaker 2 (48:12):
So I just gave you. I gave everybody official literacy lesson.
Use that one. If you want to go on professional sports.
Speaker 1 (48:18):
Never touch the principle, and you can always if I
read something goes wrong, you still have that money to
draw on, even the stock market goes crazy temporarily.
Speaker 2 (48:31):
One of the things the.
Speaker 1 (48:31):
Gentlemen said on the on the on on the documentary,
I thought it was brilliant, and it's a goal without
a plan is a wish. Yes, a goal without a
plan is nothing more than a wish. Completely true. Private
equity is probably a problem with these athletes. And I've
already described it because it's it's hood equity. It's hood
(48:53):
private equity, not institutional wall free private equity. And again
I'm not going to repeat that, I've already said it,
but it just it just it's so so important to
get that one right, Like you can't keep funding all
your friends, crazy ideas which are not proven and will fail.
Thirty thousand here, twenty thousand here. Everybody's got an idea,
(49:13):
but they can't pay you back when the idea to
go south of the border, can they? Sorry, man, I
don't know what happened.
Speaker 2 (49:19):
I know what happened.
Speaker 1 (49:20):
You know what you're doing, and I paid for it,
and now you want some more money to cover your bills.
Here's some success stories ended a positive note. Former NBA
forward Jamal Mashburn owns several car dealerships and restaurants throughout Kentucky.
He's doing extraordinarily well. Long since retired. Winfred Tubbs is
(49:42):
an entrepreneur and an investor, doing extraordinarily well. Somebody told
one of these guys the gentleman mention. Andre Rezooned, his
coach told him when he saw him spinning like it
was going out of style, told him, don't make me
pull up in my Cadillac and asked you to wash
my car, meaning you've gone broke.
Speaker 2 (50:02):
He's all, that's never gonna happen to me.
Speaker 1 (50:04):
And he remembers this great saying that Mike told him
to live like a king for a year, or live
like a prince. Forever. I want you to live like
a prince forever. It's nothing wrong. I mean, a prince
is a great thing. If you in fact, if you
lived like a prince and didn't know what a king
lived like, you would another difference. You'd be completely happy.
Lived like a king for a year or lived like
a prince forever. That's what I'm talking about. Make smart
(50:24):
sexy again. We were making dumb sexy way too long,
dumbed down and celebrated it. It's time to make smart
sexy again. Okay, let's end with Andre Rison, and I'm
not picking on him. Remember the guy whose girlfriend burned
down his house again? I think my memory was the
singer who was his girlfriend. I believe it was Atlanta,
(50:47):
but I'm sure you guys will correct me. Well, he
foiled bankruptcy in two thousand and seven. Here's a good news.
He got sober in the brain and he went turned
to college and got a degree, and he's all about
living his best life now. So God bless you. Man.
I look a saint as a center that got up.
(51:08):
We're all angels with dirty faces. You cannot have a
rainbow without a storm. First, I applaud your comeback God
bless you. Many people have not. I'm opposing the Counselors,
a group of leaders from communities that are underserved in
business and commerce and finance and real estate and faith.
(51:30):
I've got a whole list of these folks that I
trust that don't need the money from these athletes.
Speaker 2 (51:35):
We don't need a check.
Speaker 1 (51:38):
For professional athletes like Reggie Jackson, by Man, Bishop td Jakes, financiers,
don People's all these people, the Russell family, these folks
that I know who could become really good role model
and mentors, Grant Hill. There's so many to these athletes,
and we don't want a thing. We just want them
(51:59):
to succeed. I'm going to put together this group called
the Counselors and start trying to have conversations around financial literacy.
Financial literacy is the civil rights issue of this generation.
If you don't know better, you cannot do better. And
to quote Anbassador Andrew Young, to live in a system
of free enterprise and not to understand the rules of
free enterprise must be the very definition of slavery.
Speaker 2 (52:22):
Let's know better, so we do better.
Speaker 1 (52:25):
Okay, here's a fan question the top off this incredible
day of this highly needed podcast topic for everybody who
wants to come up from nothing, who wants to go
from the streets to the suites in professional sports, this
segment was for you. There's a question on Instagram from
(52:46):
a Vigra underscore code. What is financial literacy to you?
It's when you know better, you do better, because it's
what we don't know that We don't know. This killings,
but we think we know what I've been talking about.
This segment was no matter how much I love you,
my son or my daughter, if I don't have wisdom,
I can only give you my own ignorance. Out of love,
(53:08):
we passed down bad habits from generation to generation. Out
of love, we pass down ignorance. Well, you don't know better,
you cannot do better. And if you hang around nine
bro people, you've heard me say it time again, you
will be the tenth. We've got to take the emotions
out of our money and start understanding that we are
all capitalists. The only choice is which form of capitalism
(53:32):
you're going to choose? Pick up adopt six forms of capitalism.
I cover that in another podcast episode. Go back and
listen to it. If you don't think you're a capitalist,
then you're on another universe because you're watching this on
a device you paid for in a car, a note
of what you pay for in a house or an
(53:54):
apartment that you pay for with a job income that
you pay for, and so on and so forth in
a business income you've created. So we better get We've
got to get smart about money. Financial literacy is the
civil rights issue of the generation. We've got to go
from the streets to the suites, from civil rights to
building that with sil rights.
Speaker 2 (54:12):
Also, this is as important as the right to vote.
Speaker 1 (54:16):
That you know, it is entirely possible that this is
an ambassador you unquote that having a seven under credit score
just might be as important as a college degree. And
I really want you to get your college degree. Everybody
needs to have two courses, a financial literacy course and
a computer course because the future is technology and money.
If your data is not about God or love, your
(54:38):
day is about money. John O'Brien, I'm out and it's
makes smart sexy again. Money and Wealth with John O'Brien
is a production of the Black Effect podcast Network. For
(55:01):
more podcasts from the Black Defect podcast Network, visit the
iHeartRadio app, Apple Podcasts or wherever you listen to your
favorite shows,
Welcome The Money and Wealth with John ho'bryant, a production
of The Black Effect Podcast Network and iHeartRadio. Hey, Hey, Hey,
this is John Hope Brian. This is Money and Wealth.
I'm an entrepreneur, a businessman. I guess you can call
(00:22):
me a philanthropist. I've built the largest financial literacy organization
financial coaching organization in America, three hundred offices in forty
two states operation and the Hope. We have Hope inside
locations across the country. The only non profit allowed to
operate inside of a bank branch in US history. We
are also the coach for Delta employees, Delta Airline employees,
(00:43):
and UPS employees, and a lot of other companies. And
we're trusted by the government. Now, all that is important
for this next topic. This is going to be a
hot and popping podcast series. This is a primer for
everybody who wants to go into professional sports and God
bless you. Right, everybody should have a dream and everybody
should pursue it. I surely pursued mine. But when you
(01:06):
pursue that dream, understand that there's a business plan typically
behind the dreams at work, and it's the music business
or the business of music. In that example, I'll unpack
the music business in a separate podcast. It's also the
sports business, the business of sports, but folks don't tend
(01:27):
to take it seriously like that. So first up in
the trending topic, and I normally go easy on people
because I think that if you're working class and you
didn't didn't get the memo on money, well it's not
really your fault. It's what you don't know that you
don't know is killing you. But you think you know,
and no one taught to you, and you know, we
sort of, you know, come up. If you come up
(01:49):
black and brown in these communities, no one gave you
a financial literacy lesson. There was no resources there for you.
There was no there was no counselors, there was no
tax advisors. There was in your school teaching you these tools.
I got lucky at a financial literacy course when I
was nine years old. For those who know my story,
read my book which is now bestseller, Financial Literacy for All,
(02:12):
which I encourage you to get. By the way, to
go along with this podcast series as you talk to
your kids about going into professional sports. This is a
primer for everybody coming up through high school. Who wants
coming up through college, she wants to become a professional
athlete in any sport Tennis, golf, football, baseball, basketball, hockey.
(02:35):
It doesn't matter what the sport is. If you're trying
to become a professional athlete as a career, or you
know somebody who is. You know somebody who's dreaming about
this as a career, they need to listen to this
podcast episode, all of it, and they need to read
this book, Financial Literacy for All, which debuted on the
USA Today National Bestseller List, the top non fiction book
(02:58):
on the list, number twelve of all Books Publishers Weekly
bestseller lists, and it's still on the Amazon Global bestseller
list for under economics and Business number one. Financial Literacy
for All. It is a kitchen top conversation starter and
a primary market up.
Speaker 2 (03:15):
Go through it, have this conversation.
Speaker 1 (03:17):
Okay, let's now get into this very important topic. This
is the trending topic this week.
Speaker 2 (03:28):
Again.
Speaker 1 (03:28):
I normally go easy on folks, but I'm going all
in on this gentleman because he should know better. And
Bassador Andrew Young, this is not somebody making thirty thousand
dollars a year who didn't get the tools, didn't have
the tools, couldn't reach out to somebody to get to
access to tools. It is somebody who had access to
everything and threw it away, ignored it. And Bassador Andrew
(03:51):
Young says that men and women fail for three reasons. Arrogance, pride,
and greed. I don't know the dude's greedy. I don't
know his story, and I'm not going to put that
on him. I know he was arrogant and put a pride,
and I think stupid, if not stupid, he made stupid decisions.
Speaker 2 (04:09):
And it's not my opinion.
Speaker 1 (04:11):
I'm just looking at what i'm seeing and then telling you,
as a result of that, what happened. And this is
a slow moving train wreck that's been in play for
two or three years. I'm talking about Antonio Brown, who
may have twenty twenty four after eighty eight million dollars
of record earnings in the NFL, eighty eight million dollars
(04:34):
of more than a dozen years. I think it's a
dozen years playing in NFL foul for bankruptcy Protection Chapter eleven,
with fifty thousand dollars of assets or less, owing three
million dollars to creditors, which included some dude that he
got to scuffled with and heals him one point two
(04:54):
million dollars a moving truck driver who sued him after
Antonio all to them or something.
Speaker 2 (05:00):
What crazy, You're an NFL player, Why are you assaulting somebody?
Speaker 1 (05:04):
But it also includes things like credit cards and money
to a marketing firm and a law firm. What the
heck you made eighty eight million dollars? And this gets worse.
This guy, who is a Hall of Famer says this
on his own media company website. I can't get it
(05:28):
out of my mouth because you're filing bankruptcy and you
have a media company. Okay, just this is what they
released in their own words. NFL legend. That's what they say,
NFL legend Antonio Brown. He is a legend about to
be for the wrong reason. It's fouled bankruptcy. Today, he
will be a first ballot Hall of Famer in twenty
(05:49):
twenty seven. He will be releasing new music this summer.
That was not me riffing. I'm reading you the statement
this is.
Speaker 2 (05:59):
It gets worse.
Speaker 1 (05:59):
By and he is the founder of the most trusted
source in all of sports. What are they smoking? I
guess I have a right to my opinion. This is
my opinion. I'm not judging anybody. I'm just saying this
is irrational.
Speaker 2 (06:15):
Again.
Speaker 1 (06:15):
NFL legend Antonio Brown has filed bankruptcy. He will be
a first ballot Hall of Famer at twenty twenty seven.
It says he will be releasing new music this summer.
This is the same sentence your Hall of Famer. Your
claim to fame is the NFL, but your statement when
you file bankruptcy as you're releasing music this summer. He's
also the founder of the most trusted source gets worse
(06:38):
or better better you look at it, the most trusted
source in sports really the just how bankruptcy And I've
never heard of this company that's called ct SPN network.
(06:58):
In fact, is a company might want to sue you
because that sounds a lot like another name. Anyway, that's
not my business. He can't go to the law firms.
He owns law firm money. This is just ridiculous. And this,
let me tell you how incredible this guy's career is.
Brown was drafted by the Steelers in the sixth round
in the twenty ten NFL Draft. Spent most of his
(07:18):
twelve years career in Pittsburgh. He saw a lot of
success as a seven time Pro bowler and even won
a Super Bowl ring with the Tampa Bay Buccaneers. Isn't
that where Tory's shirt off, walked off the field, ran
off the field like a lunatic. That's all I remember.
And that's when I said he will go broke that moment.
(07:39):
Whenever you make an emotional decision, it's a bad one.
That was a highly, highly emotional decision. And I guess
he played and while he took his game, his shirt
off and left the middle of the game against the
New York Jets, that's when he was I think with
the Tampa Bay Buccaneers, he's made over eighty million dollars.
He's broke. What else is there to say? But my lord,
(08:04):
now let's get into something more productive. This is John O'Briant,
and this is a serious conversation about professional athletes and
(08:28):
those who want to be a professional athlete. This is
not me picking on anybody. The examples I'm going to
give is I walk you through what happens when you're
not financially literate and you don't take this seriously as
a business, a trade, a career, a profession in your
one shot to get the rest of your life completely right.
(08:49):
It is three, five, maybe ten years to set up
thirty fifty as much as you know, seventy additional years
of your life if you live to ninety, eighty, ninety
or one hundred.
Speaker 2 (09:03):
Uh, this is gonna have to last year.
Speaker 1 (09:05):
And this sort of gladiator since that, this Superman, since
that I'm Gonna be okay, has gotten a lot of
people in a lot of trouble because it's not you know,
they're not gonna They're not gonna be okay. Sixty to
seventy percent of all professional athletes.
Speaker 2 (09:22):
In the NFL and the NBA.
Speaker 1 (09:24):
I'm I'm talking about, by the way, tennis, I'm talking
about black and white. By the way, black people and
white people, you know, from all racio socio economic situations.
I'm talking about immigrants and you know, and non immigrants.
I'm talking about all sports, hockey, football, baseball, basketball, tennis, everything, right,
(09:46):
the same examples apply. While there's some good news here,
the sixty to seventy percent of all professional athletes from
NFL and NBA foul for bankruptcy and or broke within
five years after retirement.
Speaker 2 (10:01):
And I hate to say it, typically.
Speaker 1 (10:04):
Their wives step leave, they end up in bankruptcy, bankruptcy
and with a broken marriage because the party is over.
Speaker 2 (10:16):
Now, I encourage you.
Speaker 1 (10:18):
Guys to ladies to watch a documentary series that sort
of inspired me to do this.
Speaker 2 (10:23):
I've been thinking about this for a long time.
Speaker 1 (10:25):
And Operation Hope is a partner with the NFL on
one of their programs that helps with financial fluency and
communities and supported by the NFL. And Financial Literacy for
All involves both the Commission of the NBA and the NFL.
I know they're deeply concerned about this. Roger Goodell, a
friend of mine, I know he's deeply concerned about this.
My friend Tony wrestler in business partner owns the Atlanta Hawks.
(10:47):
I know he's very deeply concerned about this. But they
can't force somebody to not be intoxicated with their success
and force them to focus on right decision making in
their lives. And there's other people who don't want you
to focus on right decision making because they want to
(11:07):
separate you from your wallet.
Speaker 2 (11:09):
This.
Speaker 1 (11:10):
I want you to watch this Netflix show Broke. I
want you to pick up this book, Financial Literacy for All,
which is a national bestseller in the country USA daid
number one nonfiction, number twelve overall when it came out,
Publish This Weekly saying it was a top nonfiction book,
(11:33):
still number one on Amazon, and several categories business, econologies, etc.
Speaker 2 (11:38):
In the world financial literacy for all.
Speaker 1 (11:41):
This is the primer I want you to open up
and talk about with your family every week in sort
of a kitchen table economic conversation.
Speaker 2 (11:48):
And certainly if you have kids.
Speaker 1 (11:50):
That want to go and be professional athletes, I want
them to understand that this is the business of sports.
It's the sports business, and you are the head of
this corporation. And if you don't realize it, people are
going to separate you from the money that you may get.
The money has last you for the rest of your life. Okay,
(12:12):
let's get into this. This is about money. It's about
going broke and building wealth in pro sports. And or
let me give you one success story off the top,
because unfortunately a lot of these examples I'm about to
give you are not very positive. And my middle name's Hope,
but I can't make this stuff up. But this is
(12:32):
the facts of the matter, and I really need those
who love, those who want to be professional athletes, and
I encourage you to pursue your dreams. Whatever it is
I pursue. Mind if you want to be a professional athlete, fantastic.
But I want you to go into this with your
eyes wide open. So parents, sit your children down, young people,
send your friends down. Aspiring high school college athletes, sit
(12:56):
yourself down. Girlfriends, sit your boyfriends, boyfriends and your girlfriends down.
Everybody sit down and listen to this. Give this to somebody,
encourage him to take less than an hour to save
pain for the.
Speaker 2 (13:13):
Rest of their life. Good news.
Speaker 1 (13:16):
My brother, Reggie Jackson, who we know is mister October,
played a very successful hand in the Major Baseball League,
Major League Baseball, and is incredibly successful as a businessman.
And I went and cut the ribbon to his most
recent car dealership that he opened here in the Southeast.
(13:38):
I believe it was a Honda dealership, if I'm not mistaken,
with a great partner, a great brand, and it's doing
extraordinarily well.
Speaker 2 (13:47):
And so he's made more money.
Speaker 1 (13:48):
Really much more outside of professional sports than he did inside.
Speaker 2 (13:52):
And I can give other examples of that.
Speaker 1 (13:56):
But I want you to now listen very carefully. You
got a laugh to keep him crying here, And I'm
not laughing at any of these people. I'm not making
fun of them. In fact, some of these are tragic stories.
This is the facts. Once the glamour in the glissess
washed away. Here is the reality of being a professional athlete,
(14:20):
a gladiator at the top of your game. His podcast
is for every high school student the family of Saying,
who aspire to become arofessional athlete. Ricky Henderson got a
one million dollar check and when he got this check,
the league realized after several weeks that it hadn't been cashed,
(14:42):
so they were concerned.
Speaker 2 (14:44):
So the league got a hold.
Speaker 1 (14:46):
Of Ricky's manager and Minnie Rickey's manager got a hold
of him and said, what's going on? Are you okay?
What happened? Did you get the check? Yes, I got
the one million dollar check. What happened to it? Why
didn't you cash it?
Speaker 2 (14:58):
Well?
Speaker 1 (14:59):
I framed it, he said, he framed it. The original
check never cashed it. Now, if you walk in my office,
I have a million dollar check on my wall from
Henry Cravis. It was a million dollar check. It came
to me over breakfast from my philanthropy operation Hope and
I was very thankful for it. I'm very proud of it.
And I made a color copy of that check after
(15:22):
I cashed it.
Speaker 2 (15:24):
What's on the wall.
Speaker 1 (15:25):
If you want to go break in my office and
take it off the wall, knock yourself out, that's a
color copy. You'll go to jail for fraud as you
try to go to the bank to cash it. By
the way, do you know that you a check is
not nearly necessarily a check? You know that you can
write routing numbers and a checking hand number on the
back of a T shirt walking into a bank and
(15:47):
technically they have to cash a T shirt. Now they
probably won't, or a lot of reason security, whatever, But
technically that anything that you have the proper information on
can be a form of a payment.
Speaker 2 (15:58):
Doesn't have to be a physical check.
Speaker 1 (16:00):
That's just a structured way of transfer deferring your money
from one person to another, yours to somebody else. But
you can write a check on anything, again, including on
the back of your T shirt, if you have the
right information. That's just a fun fat But Ricky Henderson
needed financial literacy. Magic Johnson, here's a positive story. Magic
(16:21):
Johnson made more money off the field, and really the
first pro athlete to do this. He made six million
dollars in nineteen eighty nine. Away from the court, I
know I'm not very well. We're friendly with each other,
so I'm not boosting for him. I'm just saying the
brother deserves credit where credit is due.
Speaker 2 (16:41):
He has built a.
Speaker 1 (16:42):
Business empire off the court that is to be admired.
And somebody who had become friendly with Alex Rodriguez has
actually mirrored Magic Johnson's approach. And when Magic Johnson was playing,
when he first signed up, he would find the people
(17:02):
who had the front row seats on the games. He'd
go in his uniform and befriend them. And when he
found out the ones that were business leaders, he asked
them for their card, would call them the next day
and said can I come see you for breakfast or lunch.
Of course they would say yes. They idolize the Magic
Johnson and that's why they were there at the game. Well,
(17:24):
he wanted an audience with them so he could learn
about business. And you need to know that a lot
of my famous friends in the arts and professional sports
and music people want to be them. They want to
be a business person. They're calling me asking me for
advice because they understand it's the music business, it's a
(17:44):
business of sports, it's a business of music, etc. And
this is what I want you to really get your
hands around, is that Magic Johnson went as soon as
he had that door open as a professional athlete, immediately
use the credibility to get him into the doors of
the business people. So you can understand how to doe
just to make some money, but how to keep it
(18:07):
and how to grow it. You've heard me say it
time and again. You make money during the day. You
build wealth in your sleep. Making money during the day
is what's called making a living. That's literally what it's
called making a living, but it's not making a life.
It will run out when the checks stopped, the money
will run out, right, So I need for you to
be in a situation where you can make a living
(18:29):
and a life, make money during the day, build wealth
in your sleep, which means you need assets, and those
assets cannot be on your.
Speaker 2 (18:37):
Ass. Okay.
Speaker 1 (18:40):
Alice Rodriguez did the same thing, basically following Magic's model,
and he also has made more. Well, I'm sorry, I'm
not saying he made more off the court than on
I know his net worth succeeds what he made on
the court. But he made a lot of money on
the court, but he did extremely well for himself in
real estate, primarily the business that I'm also in. Again,
(19:00):
I known enough to what he's told me personally, is
that he literally modeled Magic Johnson and when going into business,
endorsement deals, et cetera is what Magic In Rodriga and
Alex Rodriguez did in real estate. For Alex, the minimum
wage in nineteen seventy in professional sports was about fourteen
(19:25):
thousand dollars, so this money really ran up. The average
salary of a Major League baseball player in nineteen sixty
seven ish was about nineteen thousand dollars. By twenty twelve
it was three point two million dollars. So that's enough
to get anybody's eyes big as turnups, right, So I
understand why people floss. I understand why people get sort
(19:47):
of carried away by all this. And you got twenty
year old player who you know, maybe broke, so you're
so poor, can't afford the o R this Pope po.
I understand you get some money, do you not having
twenty thousand dollars and now you've got twenty million.
Speaker 2 (20:03):
You're probably gonna go Craig crazy the first year. I
get it.
Speaker 1 (20:07):
But but have some crek, create money and then set
your life straight. Read this book. Understand the taxman is
going to take their peace. Understand everybody wants to buy
their mother a house in a car and a truck
for their dad. That's like the you know, the play
the playbook for UH for aspiration and you should all right,
but you need to budget these things into categories and
(20:32):
and don't go crazy. And there's the bling factor, and
then there's a posse factor. All the folks that you
want to take from the hood with you to success,
do not do.
Speaker 2 (20:41):
That that will make you broke. Don't let guilt.
Speaker 1 (20:46):
I mean, you're not responsible for everybody in the neighborhood,
and whether they did well or not is your hustling
on that on that court. That doesn't mean you're selfish
and don't support people, but don't hire them as employees.
Call it what it is, philanthropy, right, have a little
philanthropic charity fund and when people have an emergency under
(21:07):
certain criteria, they can tap it once a year and
that's it. But really helped set people up in business,
give them a hand up, not a handout. Send him
a college, right, send him to trade school. But don't
just put them on your payroll, because when the money,
your money runs out, they still want their paycheck and
they can't give you anything.
Speaker 2 (21:25):
You've given them money, they can't give you money in return.
Speaker 1 (21:29):
But I'm getting ahead of myself, way ahead of myself.
You can see how passion I am about this topic.
The average NBA salary in nineteen eighty four was about
three hundred thousand dollars, and by twenty ten it averaged
about five million dollars.
Speaker 2 (21:44):
Michael Vick, here's another one for you.
Speaker 1 (21:47):
You had a really smart guy, I'm told, of course,
very talented, one hundred million dollar contract.
Speaker 2 (21:53):
He went bankrupt.
Speaker 1 (21:55):
His so called financial advisor was convicted for running a
Ponzi scheme out of her home, and then after that
another one was convicted of running upon not a pon
the scene, but fraudularty for having fraudulent transactions transactions on
Michael's dime. So you've heard about the stuff that Cathol news,
but you probably didn't hear that two financial advisors of
(22:17):
his robbed him right in front of him, of people
who managed his own money, I manage my own money.
I encourage you to manage to manage yours. Right, you
make it, manage it. Do not say, oh, I'm not
interested in that. No, you want to do all the
boring stuff about who, what, where and when when about
your money?
Speaker 2 (22:36):
You want to do that yourself.
Speaker 1 (22:38):
You can have advisors and all this stuff, but you
want to count your own money. Bart Scott cash his
first NFL check at a check casher. He said they
laughed at him when he did it. These are not
my words, these are These are the player's words. So
I'm not trying to humiliate anybody. Actually thanked them for
(23:00):
being so honestly that you can understand that this game
is serious because a lot of these guys never recovered.
There was the million dollar checks, of five million dollar checks,
the five hundred thousandars signing bonuses, a ten milli dollars contract,
whatever it was, that was it. That was the most
morning they were going to ever see in their life.
And when it left, it was gone. Money has velocity.
(23:23):
You rich comes from a contract like the contracts I'm
talking about here, and that money comes in it and
through your hands, it has velocity. It's going to go somewhere,
and it's either going to go to appreciating assets or
depreciating assets or nose asset at all.
Speaker 2 (23:39):
Just out the.
Speaker 1 (23:39):
Door, right and when it's gone, it's gone and you
can't get it back. The first big shoe deal was
Magic Johnson. He did a two and a half million
dollar shoe deal over five years five years, and Chat
did a three million dollar shoe deal over several years.
And Tiger Woods did a forty men dollar shoot deal
(24:01):
over five years. Getting off the court money very smart.
Lebron ultimately did it in two thousand and three. This
is two thousand and three. Now did a ninety million
dollar shoot deal with Nike Ken to becoming the This
is like becoming a CEO of a corporation before you're
ready to.
Speaker 2 (24:21):
Do the job.
Speaker 1 (24:22):
And some people navigate that and some people they just
lose their everlasting mine and never and by the time
they wake up from the dream or the party or both,
it's a nightmare. The money's gone, and the friends are gone.
So called friends are gone, the ladies are gone. Everything's
gone except the bills, which lasts forever. Ron James is
(24:44):
a great example of somebody who understood he was a
corporation and responded accordingly and didn't make emotional decisions, as
best I can tell, made passionate decisions and intelligent ones
and thoughtful ones. And his story is still being told.
Of course, we all know Magic the Air Jordan's I'm
sorry and what he did in the fact that he
(25:04):
actually got ownership in the brand he had created, so
he said to get that money. I believe it's five
percent of all sales for his brand for the rest
of his life, for the rest of the brand's life.
Brilliant Leon the seriously if I'm saying that right.
Speaker 2 (25:22):
Sea r c Y, an.
Speaker 1 (25:24):
NFL pro, said he was in a car with a
jewelry guy and the jury guy was in the back seat.
He was in the car and he had given given
a jewry guy fifty thousand dollars for some jewelry which
probably was not worth more than eight thousand dollars. I
might add, try to sell it back to the jeweler
and they will buy it for a fraction of what
they sold it to you. Anyway, there's another NFL player
(25:45):
in the back seat who was trying to outdo Leon,
and he wrote a check right all in the spot
for two hundred and fifty thousand dollars and handed it
to the jeweler. The only person how smart in that
car was a jeweler that Juliet walked off for three
hundred thousand dollars, and probably the real cost of goods
sold for him was probably twenty thousand dollars, less than
(26:09):
ten percent of the money that he collected for this custom,
not all that valuable jewelry that bleamed but and singed,
but did not ring the bell at the bank account
or the asset fall at the end of the day,
making it rain. Is strip clubs. This is legend with
(26:30):
pro athletes, you know. Most people start with the dollars
two dollars. These folks, you know, founded it as a
source of pride and a sense of their own importance
to be able to throw one hundred dollar bills.
Speaker 2 (26:42):
They still do this.
Speaker 1 (26:44):
It was a way for them to distinguish themselves amongst
themselves and from the average show of the club. And
girls would come into the locker rooms, I'm told, and
they would sell custom soup packages. Now they made sure
that there were ladies doing the selling the custom suit
packages for a suit and some shoes and a tie.
(27:06):
I'm gonna say, raggedy tie and some worn out shoes
and a not so valuable fabric. Of these suits was
fifteen thousand dollars. This was, by the way, this is
years ago, fifteen thousand dollars. And the Grand Slam package
in the baseball locker room, the Grand Slam package of
(27:27):
three to four suits, wow, was.
Speaker 2 (27:29):
Fifty thousand dollars.
Speaker 1 (27:32):
I just can't, I just can't hold it together, just
robbing you in broad daylight. By the way, these the
locker room as supposed to be off limits, so let's
put that aside. Evander Holyfield bought a one hundred acre
property near where our home is for our family property
in Greater Atlanta. Bought one hundred acres and built a
(27:57):
fifty thousand square foot home. Yes, I said that right,
fifty thousand square feed home with two bowling alleys. Why
wasn't one bowling alley enough one hundred and nine rooms?
I believe it was. And I'm gonna come back to
this part of the story the minutes. We'll hold on
to that now. Of course, Evander was a boxer, so
that's another sport. He made a mint boxing, and when
(28:19):
you think about these boxers today, and it's one in
Las Vegas who I've said is going to have very
serious problems that he keeps taking a jet for himself
and a jet for his girls, and another jet for
his friends, private jets flying around the world. I don't
care how much money you make, you can go broke.
People say, oh, it's no way he's gonna go broke. Yeah,
he wears one pair of shoes and then tosses it. No,
(28:41):
he's gonna go broke. Right, But so here's here's a
great example or a bad example. Really, Evander Holyfield. NFL
players spend the most money because what I'm told, because
no one see them under their helmet, so they they
sort of go out of their way to floss. And
they're the ones who really make it rain and write
(29:02):
the checks in the clubs and do the bottle service
and all that stuff. Pro golfer John Daly, who is Caucasian,
for the purpose of making sure that everybody knows that
this the pain is equally distributed here lost fifty million
dollars gambling million. Charles Barkley said he lost ten million
(29:23):
dollars gambling. Charles was smart enough to be multi talent,
then he's still working to this very day off the
court was extremely valuable, extremely.
Speaker 2 (29:34):
Well.
Speaker 1 (29:35):
It has a net worth and a and a brand.
So he can, I guess afford to lose that ten million,
but I know it hurts ten million dollars. Okay, how
much money you make. It's a lot of motive. Keith
mccantz of the NFL's somebody. I want you to do
some research on Andre Rison, our son of the NFL.
(29:57):
Somebody gonna come back to this story. This is somebody
you might recall, had the hip hop girlfriend and they
brought down their house, his house in Atlanta.
Speaker 2 (30:08):
Hold on to that story. We're going to come back
to that.
Speaker 1 (30:13):
So it contracts NBA and baseball contracts are guaranteed. You
may not know those are going to be football players.
And again I'm not discouraging you. I want you to
pursue your dreams. NFL contracts are not guaranteed. Only the
signing bonus is guaranteed. Now there's of course exceptions to
all these rules, but generally speaking, that contract is not guaranteed. Worse,
(30:37):
athletes paid the top tax bracket, while a hedge fund
manager or a real estate entrepreneur pays twenty percent or less.
Which called capital gains tax even less because they've got
a big corporation and tax people and lawyers who are
working to figure out this deduction and that deduction and
this tax right off and that. So a hedge fund manager,
a private equity person, a bank or a financier, real
(30:59):
estate person, and entrepreneur like me has staff people and
professionals who are working all the time for them to
maximize their tax benefits under the law. Where these players
are just a corporation of one again their CEO before
they're prepared to be one. They're writing a check at
the highest tax bracket.
Speaker 2 (31:18):
And you may not know.
Speaker 1 (31:19):
You may end up playing taxes in multiple states and
taxing districts because you're getting paid every week and your
and your baby tax based on the place you're playing.
Isn't that crazy? Darryl Strawberry went to prison for not
paying taxes. Yeah, I'd rather owe my mother God rest
(31:40):
her soul than than to owe the I R S.
I mean that that that's not something to play with.
The gangster al Capone did not go down because of
murdering mayhem. He went down because of tax evasion. Do
not play with the I R s and and don't
don't be a don't be angry about it. You know
(32:01):
you made the money, you'd be happy to pay taxes.
Speaker 2 (32:05):
I mean you made a lot of money. I means
you're doing extraordinarily well.
Speaker 1 (32:07):
You just want to make sure you're maximizing the legally
available tax benefits to you, which means you needed professionals
that you can trust, who are credentialed and have good,
unimpeachable credentials that can give you great tax.
Speaker 2 (32:22):
Advice around allowable deductions and things like that.
Speaker 1 (32:28):
In the NFL, you are paid over a six month period,
and you're paid on a pro route period over that
six months. You've got to then budget yourself for the
rest of that year so the money will last. Literally,
it's paycheck to paycheck with a bunch of zeros next
to it. So you get paid for six months. Now
you've got to self manage yourself for six months. Imagine
(32:49):
how tough that is for somebody who's newly rich and
thinks some money's gonna last forever. Daz Bryant, the Easy
DZ Bryant once picked up a fifty six thousand dollars
bill at a restaurant. I just can't imagine when I
get a thousand dollar bill if sponsoring folks, and I've
done very well, I mean I got an attitude, right,
(33:12):
a thousand dollars bill. I still remember every time I
paid a big bill in a restaurant. This dude paid
fifty six thousand dollars at a restaurant, and if you
plus it up on the taxes, that means that was
one hundred and ten thousand dollars check before he paid
taxes he paid, So it's one hundred ten thousand dollars
for earnings, right but once and then you pay taxes
(33:33):
on that because you're the highest tax bracket. So the
net was fifty six thousand dollars for a meal. That's
gonna go away. You'll never see it again. He went broke.
(33:53):
Here's some bad business business deals and bad businesses, and
a lot of athletes, for some reason, seem to be
attracted to like you know, a magnet. The metal car washes,
stripper pole businesses inside of houses. Don't ask me about this,
I don't know, but the portable stripper pole businesses or
people wanted to put stripper poles in their houses a
(34:13):
big business. And that's people have done athletes have done that. Restaurants.
There's nothing wrong with restaurants and clubs, but they're cash businesses.
You've got to be there. You can't play, you can't
you know, sample your own product. Right, he's being eating
up all the food and drinking all the drinks. It
has to be serious business, but a lot of these
things are just socially attractive to athletes. Car washing, strip clubs, clubs,
(34:36):
financing movies, financing record labels.
Speaker 2 (34:38):
So you have heard her.
Speaker 1 (34:40):
One of my trending topic this gud dude Antonio Brown
who just went bust. What's his big comeback? He's got
music coming out this summer. Hasn't he paid attention to
any facts that are out there for anybody to see.
That is a really bad move after you just filed bankruptcy.
But what he doesn't listen because the infybody out there,
if you really want to know, could call me. Yeah,
(35:02):
I'd be happy to talk to him for free. I
don't want anything for anybody. I'm good. This is free,
by the way to you. It's estimated that one out
of very forty business ideas you know, will work. So
what's the chances that your cousin bam bam is going
to have a great business idea. And when you ask
them where's a business plan and they say, what's that,
that should be a great signal that it is a
(35:22):
bad business idea and you should run as fast as
you can. Family and friends are the worst. Yes, I
said it all of a sudden. Everybody wants to be
your friend when you're rich and you're wealthy, and I
really know this, and it's heartbreaking the stuff that people
will bring to you, to your doorstep once you've made
a little bit of money, it's heartbreaking. You just feel
(35:42):
like you just feel used in a slot machine and exhausted,
and you cannot just go into this feeling like you
had to take the entire neighborhood with you or you
will go bro.
Speaker 2 (35:53):
You can help people, give them a hand up, not
a handout.
Speaker 1 (35:56):
One mother was upset with her son because he was
not doing what she wanted him to do financially. So
he became a pro, and she got so upset she
gave him a bill over twenty five thousand dollars. At
his party to celebrate his contract, she gave him a
bill over twenty five thousand dollars for raising him no,
(36:20):
I'm not kidding. That's completely serious, and it's very sad.
Money changes people. I've seen it. My mother had this
brilliant thing she did in her will when she passed away.
Whennia Smith got rest her soul, she worked an hourly
job for thirty two years. Wennida Smith did a great
job and had a net worth, you know, cumulatively with
all this, you know, sort of add up the money
(36:42):
she gave for different family members to do things, buy homes, whatever,
about a million dollars net worth. And she said in
her will it was a I call a poison pill
clause that said anybody who challenges his will will be
cut out of it. Mom was gangster. I will be
doing the same thing. I encourage you to have a
wheel first of all, and yes, do the same thing.
(37:04):
This is your intention. You made the money. No one
has the right to tell you how to spend it
or how to allocate it. It is your as long as
you're winning your right mind, it's your choice. And anybody
who challenges that will on the reel after you're gone
gets cut out of it. By by Felicia, another player
had had sixty mobile phone numbers assigned to him from
(37:24):
the phone company. The only problem was he only had
one phone. I'll let you figure the rest of that out.
People were just taking advantage of him and he was
paying the bill. He had six homes. He only lived
in one, but the other five homes were always posse
to crash. What he was playing on the field, They
were playing at the club or wherever. Why can't you
(37:45):
go to word? What were they doing before we became
became a pro athlete? Again, you cannot You cannot carry
everybody into their nirvana. Is it's a dream. They're going
to wake up and it's not going to be real,
and you're gonna wake up. It's going to be a nightmare.
Former number one tennis player in the world Sanchez Vicario
(38:05):
lost all sixty dollars.
Speaker 2 (38:08):
Of her fortune to her parents.
Speaker 1 (38:10):
The photo you see of them is parents kissing them
on her in the chee cheeks. Is so loving, so sweet. Yeah,
while that they had their hands in her pocket and
took every dime she had, she's broke. There was something
called the ball or alert, Yes I said that, and
(38:30):
it alerted women that when ballers basketball players were going
from the courts to a club or wherever, the women
would get and there were seven thousand MILLIONALSS lists would
get a text message of where to show up. Okay,
I won't go any more on that child support drama.
(38:52):
Holyfield had to pay for child support for eleven children
from nine women. That's this is an absolute way to
go broke. You got to take the care of these
children for eighteen years. Your career will last three years,
five years maximum ten years on average three to five years.
Where's this money coming from? A fifty thousand, thirty thousand,
(39:14):
twenty thousand, eighty thousand, one hundred thousand dollars a month
for child support payments? That's not including your other bills.
How's that sustainable? And you can't just turn it off there?
These are real, live people. This is a relationship. You
created a life, you brought in this world, and you're
responsible for him or her or both. Holyfield had eleven
(39:36):
children from nine women. Travis Henry from the NFL oh
seventeen thousand dollars per month woof in child support for
nine children from nine women.
Speaker 2 (39:48):
He could not pay, went broke.
Speaker 1 (39:51):
NFL has the biggest injury's highest pay in the shortest
career co SAR. Another player got a seven year twenty
s six million dollar contract.
Speaker 2 (40:01):
Yay.
Speaker 1 (40:03):
A few weeks later, he got a twenty thousand dollars
see you later from the Cleveland team that he had
signed with.
Speaker 2 (40:09):
Something happened they could let him go.
Speaker 1 (40:11):
I told you, NFL contracts basically a version of at
will again. This is a great things. I'm not down
in the NFL again. I partnered with the NFL. I
know a lot of people who've done extraordinarily well at
NFL players, but that's because they looked after their money,
and they knew the contracts they signed, and they didn't
play around with this opportunity. They treated it like it was,
(40:32):
which is once in a lifetime gift. Tarrell Owens, NFL star,
went from rich to zero. Major League Baseball player Lenny
Dykstra went from being worth fifty eight million dollars to
a bank account of fifty thousand dollars.
Speaker 2 (40:50):
What's this?
Speaker 1 (40:50):
What is fifty thousand dollars number? Tonio Brown same thing,
fifty thousand dollars in assets. He had thirty one million
dollars in assets at one point is bankrups filing? He
had fifty thousand dollars and by the way, he went
to prison NFL star Warren Sapp dead broke. Major League
Baseball star Kurt Shilling put thirty five million dollars into
(41:12):
a video game business. Se would you see a trend here?
It's like it's like adult kids, right, but yeah, it's five.
These are toys. But you can't invest all your money
in a toy. Where's the real estate? Where's the you
need a where's the accounting business or the law firm
you started up, or the you know, I mean a franchise.
Speaker 2 (41:34):
You know, somebody with a proven business plan.
Speaker 1 (41:37):
You know, twenty McDonald's that you want to own, or
Burger Kings or whatever. Right I mean this, Okay, anyway,
you know where this story is going. You put thirty
five million dollars, but video game business ended up upside
down fifty million dollars broke. He had twenty two million
dollars in assets and owed one hundred and fifty one
million dollars. Latree Spreewell earned one hundred million dollars and
(42:02):
famously turned down a twenty one million dollar extension, saying
this someone was as bad as Antonio Brown, maybe worse.
It's maybe worse. Actually, he actually said he turned out
a twenty one dollar contract extension because he quote had
a family defeat.
Speaker 2 (42:21):
He went broke.
Speaker 1 (42:22):
One hundred and ten million dollar made in fifteen NBA
seasons with Antonio Walker, and he's working through trying to
come back. Right now, Allen Iverson squandered two hundred million
dollars in his NBA career. This is eyewatering. These are
I piercing numbers. Two hundred million dollars. Now, I told
(42:44):
you where the career and numbers started and how they
racked up. So when Reggie Jackson, my brother Reggie, when
he was coming up, it was not the biggest those
were not That wasn't the time when the biggest paychecks
were coming through. And my brother, not my brother, but
my friend Billy Are and her late husband and Hank Aaron.
He didn't the home run king. He didn't make a
fortune in baseball coming up, but he made a fortunate
(43:06):
new business owning BMW dealerships and doing endorsement deals and
doing business deals.
Speaker 2 (43:11):
I mean just brilliant as a businessman.
Speaker 1 (43:13):
He understood, they all understood this was a shot to
turn an income into an asset, a temporary moment, into
a career of lifetime sustainability and quality of life. I'll
get to what to do here in a moment. NFL players,
it's comedy. Sell their Super Bowl rings when they get
(43:36):
in trouble. You can go on the auction networks in
eBay and see Super Bowl rings for sale. Mark Brunnell
in twenty eleven lost fifty million dollars. Remember that story
I told you about Holyfield who has a house near
our home. Well, it was one hundred acres. He lost it.
(43:57):
He owed twelve million dollars at the time one hundred
and nine room home worth at the time nine million dollars.
I think he ended up selling it under distress for
five million dollars to a rapper who has it now.
And I hope that he is managing his affairs properly.
He seemed to be floss into. But that's I'm not
(44:17):
gonna get into. This is a professional sports. I don't
know his story all right, so I wish him well.
Leon Searcy retired from the NFL in two thousand and
two after ten years. He's a sales rep for a
software company today. After ten years, what I want you
to do is take five years with an income to
(44:39):
figure out you're going to live on it for fifty years.
So let me give you a quick investment, one on
one situation. If you put two and a half million
dollars in the bank and it gets ten percent average
return from the stock market, and when you have a
pie here of what to do with money. Private equity
on Wall Street means something different than private equity on
(45:01):
your street. A lot of these guys are doing private equity,
meaning they're investing in the strip club and the restaurant.
The thing I told you about the silly stuff. Private equity.
That's where most of the money is going to the
things of their own, their own ideas, most of which
don't work because they're not financially illiterate, not because they're
(45:21):
not smart people. They're obviously breeding the talent. They're professional athletes.
But that doesn't mean you're a great investor. So I
want you to have most of that insecurities publicly traded
stocks on the stock market through proper brokerage firms with
proper advisors. In that regard, I use Rockefeller Capital Management,
as in the Rockefeller family. But you can, you know,
(45:43):
but I still pay attention to everything, even though I've
got somebody handing my business. Also used Wells Fargo to
a few others. Right, So I want you to have
a securities portfolio. I want you to have real estate, right.
I want you to have some stocks and bonds. You
can also have some gold or whatever is and that
you know, if you want to do that natural resources.
And if you have a look you want to take
ten percent, do some crypto or whatever. Knock yourself out,
(46:06):
but don't don't use your wrint money. And it should
be five percent for private equity, not fifty five percent,
not eighty five percent for our hood version of private equity,
which is pooking them in some crazy idea for a
business that they want you to finance, and they've never
been a business person in their life. So if you
(46:26):
have two and a half million dollars, that'll return about
two hundred and fifty thousand dollars a year, which should
be enough for remote they have most people to live
on in retirement. If you have five million dollars that
you've made, again, these people made thirty million, forty million,
fifty million, one hundred million dollars contracts. I'm not talking
a lot of that money. Five million dollars of that
ten percent return on your stock portfolio is five hundred
(46:48):
thousand dollars a year. That's a lot of passive income.
That's a lot of money to chill once you're retired,
and that's for the rest of your life. Don't never
touch the principle you want to live off the interest. Okay,
everybody watching this, tell the young person who has short
attention span to go to this point of the audio
(47:10):
the podcast and just listen to what I just said
to them. Take a principal amount of money, do not
touch it. Do not touch it. Put it in conservative
boring stock right, the same stocks that are building my
billionaire friends. Put it in right best the biggest and
best companies in America and the world that are proven track,
working for profitability, et cetera. And don't touch the principle.
(47:33):
In fact, you want some stocks to have a dividend payment,
meaning they pay a return on their earnings to their
shareholders in a fee. But you should be able to
get a ten percent eight to ten percent average return
five eight something north of five percent.
Speaker 2 (47:49):
Five.
Speaker 1 (47:50):
You know, bonds will give you that five eight ten
percent return on your stock portfolio. And if you have
five million dollars in there, that's half million dollars a
year and a budget to live on a half million
dollars a year for the rest of your life and
any money else other money you make outside of NFL.
You've got businesses, or you want to do some side
thing or go work for corporation, well that's extra money.
Speaker 2 (48:12):
So I just gave you. I gave everybody official literacy lesson.
Use that one. If you want to go on professional sports.
Speaker 1 (48:18):
Never touch the principle, and you can always if I
read something goes wrong, you still have that money to
draw on, even the stock market goes crazy temporarily.
Speaker 2 (48:31):
One of the things the.
Speaker 1 (48:31):
Gentlemen said on the on the on on the documentary,
I thought it was brilliant, and it's a goal without
a plan is a wish. Yes, a goal without a
plan is nothing more than a wish. Completely true. Private
equity is probably a problem with these athletes. And I've
already described it because it's it's hood equity. It's hood
(48:53):
private equity, not institutional wall free private equity. And again
I'm not going to repeat that, I've already said it,
but it just it just it's so so important to
get that one right, Like you can't keep funding all
your friends, crazy ideas which are not proven and will fail.
Thirty thousand here, twenty thousand here. Everybody's got an idea,
(49:13):
but they can't pay you back when the idea to
go south of the border, can they? Sorry, man, I
don't know what happened.
Speaker 2 (49:19):
I know what happened.
Speaker 1 (49:20):
You know what you're doing, and I paid for it,
and now you want some more money to cover your bills.
Here's some success stories ended a positive note. Former NBA
forward Jamal Mashburn owns several car dealerships and restaurants throughout Kentucky.
He's doing extraordinarily well. Long since retired. Winfred Tubbs is
(49:42):
an entrepreneur and an investor, doing extraordinarily well. Somebody told
one of these guys the gentleman mention. Andre Rezooned, his
coach told him when he saw him spinning like it
was going out of style, told him, don't make me
pull up in my Cadillac and asked you to wash
my car, meaning you've gone broke.
Speaker 2 (50:02):
He's all, that's never gonna happen to me.
Speaker 1 (50:04):
And he remembers this great saying that Mike told him
to live like a king for a year, or live
like a prince. Forever. I want you to live like
a prince forever. It's nothing wrong. I mean, a prince
is a great thing. If you in fact, if you
lived like a prince and didn't know what a king
lived like, you would another difference. You'd be completely happy.
Lived like a king for a year or lived like
a prince forever. That's what I'm talking about. Make smart
(50:24):
sexy again. We were making dumb sexy way too long,
dumbed down and celebrated it. It's time to make smart
sexy again. Okay, let's end with Andre Rison, and I'm
not picking on him. Remember the guy whose girlfriend burned
down his house again? I think my memory was the
singer who was his girlfriend. I believe it was Atlanta,
(50:47):
but I'm sure you guys will correct me. Well, he
foiled bankruptcy in two thousand and seven. Here's a good news.
He got sober in the brain and he went turned
to college and got a degree, and he's all about
living his best life now. So God bless you. Man.
I look a saint as a center that got up.
(51:08):
We're all angels with dirty faces. You cannot have a
rainbow without a storm. First, I applaud your comeback God
bless you. Many people have not. I'm opposing the Counselors,
a group of leaders from communities that are underserved in
business and commerce and finance and real estate and faith.
(51:30):
I've got a whole list of these folks that I
trust that don't need the money from these athletes.
Speaker 2 (51:35):
We don't need a check.
Speaker 1 (51:38):
For professional athletes like Reggie Jackson, by Man, Bishop td Jakes, financiers,
don People's all these people, the Russell family, these folks
that I know who could become really good role model
and mentors, Grant Hill. There's so many to these athletes,
and we don't want a thing. We just want them
(51:59):
to succeed. I'm going to put together this group called
the Counselors and start trying to have conversations around financial literacy.
Financial literacy is the civil rights issue of this generation.
If you don't know better, you cannot do better. And
to quote Anbassador Andrew Young, to live in a system
of free enterprise and not to understand the rules of
free enterprise must be the very definition of slavery.
Speaker 2 (52:22):
Let's know better, so we do better.
Speaker 1 (52:25):
Okay, here's a fan question the top off this incredible
day of this highly needed podcast topic for everybody who
wants to come up from nothing, who wants to go
from the streets to the suites in professional sports, this
segment was for you. There's a question on Instagram from
(52:46):
a Vigra underscore code. What is financial literacy to you?
It's when you know better, you do better, because it's
what we don't know that We don't know. This killings,
but we think we know what I've been talking about.
This segment was no matter how much I love you,
my son or my daughter, if I don't have wisdom,
I can only give you my own ignorance. Out of love,
(53:08):
we passed down bad habits from generation to generation. Out
of love, we pass down ignorance. Well, you don't know better,
you cannot do better. And if you hang around nine
bro people, you've heard me say it time again, you
will be the tenth. We've got to take the emotions
out of our money and start understanding that we are
all capitalists. The only choice is which form of capitalism
(53:32):
you're going to choose? Pick up adopt six forms of capitalism.
I cover that in another podcast episode. Go back and
listen to it. If you don't think you're a capitalist,
then you're on another universe because you're watching this on
a device you paid for in a car, a note
of what you pay for in a house or an
(53:54):
apartment that you pay for with a job income that
you pay for, and so on and so forth in
a business income you've created. So we better get We've
got to get smart about money. Financial literacy is the
civil rights issue of the generation. We've got to go
from the streets to the suites, from civil rights to
building that with sil rights.
Speaker 2 (54:12):
Also, this is as important as the right to vote.
Speaker 1 (54:16):
That you know, it is entirely possible that this is
an ambassador you unquote that having a seven under credit score
just might be as important as a college degree. And
I really want you to get your college degree. Everybody
needs to have two courses, a financial literacy course and
a computer course because the future is technology and money.
If your data is not about God or love, your
(54:38):
day is about money. John O'Brien, I'm out and it's
makes smart sexy again. Money and Wealth with John O'Brien
is a production of the Black Effect podcast Network. For
(55:01):
more podcasts from the Black Defect podcast Network, visit the
iHeartRadio app, Apple Podcasts or wherever you listen to your
favorite shows,
Host
John Hope Bryant
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com