This past Friday FIBA announced it would allow NBA players under contract to play in its various leagues during the lockout, only if the deals they sign come with opt out clauses. Meaning when the league and players come to an agreement they would have to return to the states and play for their teams.
Playing overseas has become a viable option for many players due to the lockout and many big name stars are considering playing to keep in shape and enjoy the game they love. Some names such as Kevin Durant, Carmelo Anthony and Dwight Howard have mulled over the idea. This past Monday the NBA took legal action on the players filing two claims for being uncooperative in negotiations for a new collective bargaining agreement and making threats to dissolve the union. A similar situation happened with the NFL in regards to the decertification of the union this year. Both sides have to want to work together collective in order for these issues to be resolved.
The team owners want significant changes to the league’s salary structure where owners can recoup some of the losses they have occurred in the past years. Owners are claiming they have lost roughly $300 million last season alone. Players are at a standstill because owners want to reduce salaries and contract lengths for the players.
For this to be resolved owners and players have to understand in order for the league to start operating again there has to be compromise. If we can get a deal that is fair for the both sides where it makes sense, I believe the league will start again in late October. If not get ready for a shortened season much like the last lockout in 98-99, which it took nearly 5 years to regain a sold fan base again.
References:
www.nba.com
www.espn.com
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02 August, 2011
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I wanted to write and comment on an article I came across involving an interview with Sports Agents. To the outside world being a sports agent seems like a glamorous job with riches and notoriety. But the truth is to get there takes patience, resilience, and determination for the long haul.
The interview I read was with Jack Bechta who is an NFLPA certified advisor who has over 20 years of negotiating deals for NFL players. Jack is the CEO of JB Sports and has negotiated over 200 contracts. In the interview Jack stressed how client stealing is normal among NFL agents, especially when a great player is considering the free agent market. This can be challenging for smaller firms because they might not have all the resources to convince the player to stay with the firm. The NFL should have some kind of clause that would give a timetable or stipulation in the player and agent contract that would not allow them to leave suddenly.
Jack stated it took him about 5 years to become a full-time agent and you would need about $100k to get started. This alone shows that if someone is trying to get in the business they have to be in it for the long haul in order to see results. There is a lot to learn about the profession from the collective bargaining agreement, contract clauses, and effective recruiting. It takes time for one to build their client roster and build a name for your company and brand.
For anyone trying to get in the sports industry world, or any other field I would say the most important component is be passionate about what you do and believe in. You should ask yourself if I could work for free what do I see myself doing? Hopefully this posting gave a better understanding and insight on Athlete Representation.
References:
www.sportsagentblog.com
www.nationalfootballpost.com
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Analysis of John Wooden on True Success Speech
John Wooden one of the Greatest Coaches in college history talks about success and urges us all to pursue the best in ourselves. In this motivational speech John revisits wisdom his father told him, and advice he gave his basketball team at UCLA.
I notice from the beginning of the speech that John Wooden spoke from the heart and was very sincere in what he believed in. One of his quotes “Do the best that you are capable of, which is defined as success”. This really inspired the audience as well as myself because nowadays people tend to give themselves a hard time when something does not go right. People in general feel that if they do not win or succeed that the whole thing was a failure, which is quite the opposite. He stressed the importance of being patient and having faith in whatever you do. One of the most inspirational quotes he stated was “Things will work out as they should, as long as we do what we should”. This really touched home with me, because many times a person can doubt what they are doing and look at the scenario as a setback, but knowing there is a reason behind it all. We in society have to understand that the journey is better than the end because it’s the relationships we built, the memories, along the way, and how we ended up there.
John Wooden did not really go into any significant events or a time when he overcame adversity but rather focused on what true success really is and not from a definition standpoint. The speech gave me a deeper understanding of how great a teacher, mentor, and coach John Wooden is. More importantly the true meaning of success is sometimes in front of us and we don’t even know it. This speech really gave me a better understanding of life and the importance of collaborating and striving for a deeper purpose.
References
http://www.ted.com/talks/lang/eng/john_wooden_on_the_difference_between_winning_and_success.html
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19 July, 2011
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You may have seen the commercials or highlights of the event just put on. Usually it is a few NBA athletes, coaches, and league employees that donate their time to give back to the community by being a part of the NBA Cares Program. NBA Cares is a global community outreach that focuses on educating kids, youth and family development, and being active. The NBA and its teams assist with various programs, partners, and initiatives that help children and family globally. Since October 2005 when the program was launched the program has raised 160 million dollars, provided 1.7 million hours of community service, and have built 610 places where families and kids live globally.
NBA teams have plenty of opportunity to give back to their community through these various programs. Some of the programs they offer are NBA/WNBA fit, which focuses on physical activity and healthy living through various events and programs. Another event is NBA’s Read to Achieve program which helps kids develop their reading skills and explain the importance of reading. Lastly another program is Basketball without Borders, which is a program that uses the sport to create positive social change in the areas of education, health, and wellness.
Many NBA Cares has community partners to assist with the positive impact in their areas to assist with these various ventures. Some companies such as the UNICEF, YMCA, American Red Cross, and The Boys and Girls Clubs of America do their part to assure success across the board.
Many of these programs that are being conducted are a great way to not also give back to the community, but a great way to network as well. By being a part of that specific philanthropy it can be a great way to meet with people in the field you may want to work with someday. Due to the fact they see you in a different light and not as someone looking for an opportunity or handout, it will give you an edge. Usually people that are involved in various events such as these, give themselves great opportunities to meet individuals that can have the final say on a specific position with the company. These programs are very important to the industry because it gives you another avenue to network into that field by helping out in the community. In a way it is very positive because if nothing becomes of that specific opportunity at least you made somebodies day brighter.
References:
www.nba.com
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18 July, 2011
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After coming across various sites that offered this service to professional athletes and entertainers, I wanted to comment on this specific topic. Imagine your contract just expired with your current team, not sure about where the team is headed or unsatisfied with the city you live, change is inevitable. You contact your agent and tell them you want to play for a different team and relocate. Weeks go by and eventually you finally sign a contract to play with a new team and move to a new city. But there are more backend details involved. Such as who handles selling your current house, where will you live now, transportation, etc.
There are various concierge services that handle these various tasks while dealing with a specific clientele. Some of the services they include are home transactions, financing, credit repair, legal services, automotive, vacation rentals, vehicle transport services, and private jet services. Seems like these companies offer a complete package from A – Z on services you may need when relocating. Seems like these companies got every aspect covered, but is best to definitely do your research as it seems some of the companies are represented by realtors using an angle to represent professional athletes. Granted they may know the area for housing but when covering other aspects of your initial move one should proceed with caution.
A way to protect you is find out the facts about the company. How long have they been in business? Who have they really helped? What experience do they truly have in regards to dealing with legal services? These are just some of the questions and scenarios one must consider before using these companies. Even though the website may look professional do your homework and see what truly they can offer you and how much they charge. Only then will get you a sense of what you are paying for is really worth it.
References:
www.relosport.com
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14 June, 2011
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So you finally made it and signed with a professional team. They liked your potential, talent, and the organization feels like you can help there team win games. Now is the hard part, learning how to budget your new found wealth! Seems like the money is a lot and will not run out. But eventually the big checks will stop coming in, so knowing how to budget long term will put you in a better position down the road. A high percentage of professional athletes file for bankruptcy only after a few years of finishing their professional career. According to Sports Illustrated 78% of NFL players go bankrupt or are under financial stress within 2 years because of joblessness or divorce. By following a couple guidelines and careful planning that will not be the case.
1st Contract
When you and your agent worked out a deal with your new team, you want to consult a CPA as soon as possible. They can go over various project managing that you will have to consider with your money. Such as tax withholding on game checks and player bonuses. Deductible expenses like moving expenses, training fees, and agent fees. Most importantly tax planning for any endorsements.
New City
Upon signing with a new team you will probably will be living in a city you are unfamilar with. Even though you may consider buying a house at first. The first year I would recommend renting a townhome with a fellow teammate preferable a rookie as well. You may never know what may happen early in the season also you want to learn the area and see if this is somewhere you want to purchase a home. That way you keep your financial obligations low and can put the money away for a rainy day.
Budget and Financial Planning
Whether you are a first round pick or undrafted player that barely made the team, whatever money you get make sure to create a budget. This will help you with your monthly expenses as well in the off-season. You have a limited amount of time usually players last in the nfl and nba an average of 4 - 6 years to make a significant income. By planning financially down the road to set yourself up for retirement can determine what kind of lifestyle you will have after you retire from professional sports.
By having a clear understanding of your finances it can help down the road if you would like to explore business ventures, investing, or building a portfolio. These are just some of the key factors an athlete must be aware of when starting his or her career. "The art is not in making money, but in keeping it" - Anonymous
Resources
www.sportsagentblog.com
www.ncompassfin.com
www.sportsillustrated.com
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01 June, 2011
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One of the biggest concerns to date is the lending practices of NFL players in need, or with a strong desire, to take out loans. These loans typically have terrible interest rates attached to them, which players will be complaining about for years to come. Some interest rates exceed 20% of the loan amount. Some NFL players are turning to high-risk loans to make ends meet.
Another reason players are borrowing now — before even missing a major payday — is that they may be afraid credit will dry up if the lockout continues into the NFL season, said Darren Heitner, an agent and the author of sportsagentblog.com. After all, if interest rates are this high now, what will they be like when players start to miss game checks and lenders know they are even less likely to be repaid?
It is said to see this happen to professional athletes especially the amount of money they first start to make when they get in the league. Not having a good sense on how to budget their finances and being able to save for a rainy day is putting a strain on many football players and their families. Hopefully both sides can come to an agreement and the athletes can just focus on what they do best. Play the game...
Resources
www.prioritysports.com
www.suresportslending.com
www.agrsportsfunding.com
www.sportsagentblog.com
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19 May, 2011
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