Listen: NFL, Leigh Steinberg, Jacksonville Jaguars discussed on Bloomberg Business of Sports
"With agent Leigh Steinberg about what athletes are doing to make money outside of sports. The adage was athletes wanted to be Rockstars and Rockstars wannabe athletes. Now, what I'm seeing is athletes that want to be tech investors. They wanna be venture capitalists. How do you wrap your arm around that? And how do you convey to your clients that they too can have an entree to this world if they put the time in and if it's if it's what they wanna do. We asked them to go back to the high school set up a scholarship fund keep roots there at the college level the alarms at a number of different schools, primarily relate to a true the football basketball program. So we asked them to endow scholarship produce something to bond with them. All that leads to. And finally at the pro level doing charitable foundation. So you have a player on the forty Niners. You ask him. Can you think of any businesses proximate to Santa Clara that might be good for second career? Well, venture capital tech. So it's not by chance at Brent Jones, retired tight end that I represented put together several billion dollar hedge fund. But Steve Young as a bought and sold a variety of companies in that sphere that so we use the off season. First of all we had a network so they can walk up in a room at a banquet to that businessmen who might be an attack who might be an interesting distri focus on. Ask him first card put a Rolodex together. And this is how Bruce Smith retired defensive and owned the art of the of the Mandalay oriental hotel in Washington DC. This is actually a two players who became minority owners of NFL teams Deron cherry on part of the Jacksonville Jaguars and write children's currently owns part of the Houston Texans. So they understand. There's wealthy players today. Understand the difference between rich and wealthy and wealthy is the ability to own a team. So my point is we're pointing them all towards leadership that they can run businesses. Earl Campbell who I work with as a beat back and company that is can't pack them. Eat fast enough that happened because university of Texas alums took him under their wing. So the bright athlete who understand the power of the college and pro community who understands networking. As his brand. And then he has an entree to be a leader in business. And my goal is is the players has owners. So that they get to the point where. Instead of being named boy the owner and drawn ferry place in Kansas City owns the Anheuser Busch Sherpur ships there, and then that that's what led the Jacksonville Jaguars owner to be interested. So we're consciously pushing players towards enhanced roles. So that the retirement just go straight onto an exciting second career to be able to do that. Obviously, you need to be smart with your money when you're making it as a player our players starting to think about that earlier now than they may have been twenty years ago when you think about maybe not Patrick homes is making a lot of money. But instead, you know, a client of yours who might not be making as much how much are they starting to think about are. You forcing them to think about saving for life. When when that paycheck isn't coming in. First fortunate thing is at college campuses across the country. They're moving towards lifetime education experiences. So the athletes that many many schools are getting financial advice while they're still on the campus. Then we make sure that they hook up with the right financial planner. So that they understand the concept that they will not be earning this amount of money. They can't project it into the future that this may be one seven year experience, and then they have to transition somewhere else. So they're they're surrounded by people, and our athletes are so afraid of the horror stories have read about the past that they get good financial planners. They learn how to budget. They learn how to do all sorts of things our goal with our Abby is to. Have them live if we can often Dorfman come and save all the money that they actually make the sport. I mean, I've heard the horror stories as well in your estimation. What percentage of of NFL players are, you know, just blowing through their money. How many are not being financially responsible for when they come off the college campus there all sorts of people that can help them for financial planners or agents, including compliance on a college campus, but players that come from strong families for those Duke diligence in the selection process, those players end up being incredibly well heeled over time the players that don't afford themselves any screening when they come off. Those are the ones who get in trouble. And they get in trouble number one because it takes a village. So they. Feel like they're the support of of not just family extended family and extended friendships and all the rest or really horrific investments, which doesn't happen as often. Many more divorce is one of the leading causes frankly, bankruptcy. So so the answer question is. There are probably twenty five percent athletes who are not following what we consider prudent advice, but the vast majority of them are, and there's no real excuse for any athlete who is a top draft pick or a starter in their profession. Not to walk out of the game with lifetime security. So tell me we we got to wrap it up here Lee how long until we see pets smiling face on a up jar. I think it will happen this off season. Alright perfectly Steinberg. Thank you very much. You're taking the time. Takeaways Eban just how much the business has changed. It's really fun to talk to somebody likely who's been doing this for such a long time. What did he say revenue for these teams or what what was it? Two million two hundred hundred plus they're getting that in like L A or Oakland or relocation fee alone this year. It's unbelievable to have a guy who can tell you what the business was then and all that's gone on. And then how the business has changed for him. And the teams and the athletes now to takeaways for me one the fact that you once wore suspenders, and I think that's a fantastic pitcher Bob bench. And I were there. I find. But from Lee. Obviously, no surprise, but Patrick Mahomes is in for a large hefty endorsement payday Patty fly. They've deliberately kind of slow slow rolled it. When he was a rookie last year wasn't playing. They had offers he stayed away. Now at the end of his second season when he is a bona fide NFL superstar we're gonna see as lease at a number of these five hundred thousand dollar deals coming in. I can't wait for the Packers. Did you think five hundred thousand with small? He's in Kansas City. He's a second year players in national stock. Yes, I would imagine. We'll be worth.."