Sports are a huge multi-billion dollar industry with hundreds of thousands of fans all over the world.
Famous sportsmen who play popular sports have become new celebrities. They earn millions of dollars a year and get deals with such famous brands as Pepsi, Nike, Adidas, and many others. Nevertheless, the career of an athlete cannot last forever. Usually, sportsmen retire before 40 and start coaching. Some choose a different path: investing. Find out how former athletes invest their money.
1. Investing in Other Businesses
One of the main ways for athletes to make their money work for them is investing in other businesses. There are two types of approaches here. For example, sportsmen often invest in startup companies. If the business idea is good and perspective, it can potentially bring a lot of money. The initial investment in startups is lower compared with popular brands, as SportsAdda article confirms, for example, Steven Smith, a famous Australian batsman, invested 100,000 dollars and it turned into $12,1 million in four years. He bought the shares of a staring mattress company Koala in 2015. The investment fully paid off: in four years the company’s revenue is 150 million dollars with 200,000 customers. It significantly improved batsman’s financial situation: it is reported that his net worth right now is $31 million.
Another way would be to invest money in a famous brand with a good reputation. The profit percentage will not be as high, but there are fewer risks involved. For example, Kevin Durant, an NBA player, decided to put his money in such companies in Silicon Valley as Postmates and Acorns. It guarantees a stable profit, besides sports money.
2. Becoming a Businessman
Why invest money somewhere if you can open your own business? That is an approach that many modern sportsmen choose. They invest money in their businesses. There are several advantages: you can control everything. Moreover, only you are responsible for your company’s success or failure. Derek Jeter, who is a former famous baseball player, is a good example of a self-invented businessman. After his retirement, he became a CEO and part-owner of Miami Marlins of Major League Baseball (MLB) since September 2017. Shaquille O’Neal is a former basketball player who decided to become a businessman after retirement. He now owns a franchise for Krispy Creme. In 2017, he bought location at 295, Ponce de Leon Avenue in Atlanta. In this perspective, having the time, money, and dedication, famous former athletes often start their businesses.
3. Real-estate and Automobiles
Another quite popular investment among athletes is private property. You have probably heard about incredible houses and cars of professional sportsmen. A famous Indian batsman Virat Kohli has many mansions in all major cities of India. The same goes for soccer stars such as Cristiano Ronaldo and Lionel Messi. Besides providing status, private property can also be a profitable investment. For example, it is usual for athletes to buy luxurious real estate. There are few risks as sportsmen will be able to sell it with a higher price tag. The same goes for cars: some fans are ready to pay millions of dollars for cars that their favorite sportsmen used to drive. Private property and real-estate may not be the best way of investing money for regular people, but it works great for celebrities and sportsmen.
To sum everything up, although sportsman’s career cannot last long, there are ways for athletes to make their money work for them. A lot of professional sportsmen choose to invest their money into startups, as well as known companies with good reputations. Some athletes become businessmen after retirement or invest money in real estate.