It’s difficult for the average working person to feel empathy for a current or former professional athlete who seemingly squandered his or her millions. The reality, however, is that pro athletes have a far shorter span of peak earning years than most professionals and many of them are going broke at a rapid and consistent pace. Enter former NFL and CFL player Anthony Simmons and the Pro Athlete Business Group. Â Simmons’ company, along with Emerald Financial & Business Solutions LLC host a bi-annual Franchise & Investors Show geared specifically towards athletes in the hopes of steering pro ball players away from bankruptcy and into a healthy financial life after sports. With the latest event taking place February 19-20 in St. Pete, FL, BlackEnterprise.com caught up with Simmons, who explained his mission.
What was it specifically that made you start this conference with an emphasis on franchising?
What made me start it was I was a product of that environment myself. Playing in the NFL and going broke after my first year in the league and not having any tangible investments or franchises or business once I left.
How did you end up in that predicament?
My first year in the league, coming from a not so well environment in Oakland, CA. I’m the youngest of nine kids and once you get that money and you’re coming out of college, its like, “Wow, I can spend all this and I’m going to get it again next year.†I was thinking I was going to play forever.
A recent MSNBC article suggested that a large portion of NFL players were living paycheck to paycheck. What is it about the NFL specifically that you think fosters that behavior? Is it a keeping up with the Joneses issue?
You’re right; it’s like keeping up with the Joneses. When I entered the NFL, everybody had Mercedes, and Porsches and nice cars. So the first thing I went and bought was a Mercedes. I didn’t need a Mercedes; I just went out and bought one because everybody else had one.
Society sees NFL ball players as rich individuals. I think it affects a whole lot of athletes, even to this day. Those who are making the league minimum of $375,000; they take home $260,000 and they still want to buy a house or a car and once they do that they’re literally broke. They don’t have any more money and they base [their financial decisions] on the next year that they’re going to go and play. Well, what if you don’t make it next year? What if you get hurt? What if the team just doesn’t want you anymore? Then you’re stuck; so how are you going to pay for the stuff you got? That’s why the ratio is 82% of professional football players go broke two years after they retire. They tell you when you come into the league that 60% of you guys are going to end up broke, divorced or homeless.
Is that high percentage due to the fact that most NFL careers only last two to three years but many of these players think they’ll play 10-12 years?
That’s part of it but the other part is, if you come into the league and make $375,000 a year, take $25,000 of that and invest it into something. Whether it’s short term or long term. That’s what you should do. Now, the next year, if you make the team, take another $50,000, take $100,000 and invest it.
What kinds of tips and advice are offered to former and current players during the conference?
We bring in the players and we give the businesses the opportunity to meet the athletes thus giving the athletes the opportunity to invest into something tangible for them and their families. We invite their families out [as well] because they are the ones who help. We don’t want to hear, “Oh, I’ve got to go back and talk to my wife.â€
Now I don’t invite agents to the event because we wouldn’t have this problem if they were doing what they were supposed to do on the athlete’s part as far as investments. This is an opportunity for [the athletes] to take for themselves. There are no obligations and no pressure. More than 32% of the athletes who attend the shows took advantage of the opportunity, whether it’s an investment or a franchise or a business.
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How do you select the companies that participate in the conference?
We go to the athletes and ask them what is it that they are interested in investing in. We ask them whom are they interested in franchising, investing in or networking with and that’s who I go after. We also work with Emerald to bring in the different companies to help sustain the conference for the athletes.
How did bringing Emerald Franchise & Business Solutions, LLC on board bolster the conference?
At our last event in June, we had over 250 professional athletes. Our athletes go from NFL, MLB, WNBA, track & field, CFL… any pro
sport that’s out there that’s willing to come out and be a part of the show, we will bring in. Now we have a Rolodex of over 866 pro athletes that, depending upon the franchise list, we can fly in. We fly in all of our athletes and put them up at the hotel, to have them sit down and take this opportunity to empower, educate the athlete and create an opportunity to further his or her career after sports.Why do you feel franchising is a viable way to maintain a stream of income for these athletes and their families?
It’s not just franchising. We have wealth management companies and other businesses there that give them opportunities. We go with franchising because a lot of athletes venture out into franchising.
How can young athletes avoid the financial pitfalls that so many of their peers fall into?
The No. 1 thing is we cannot reach them all. It has to be implanted in them from college. When you come into the league you have to be a part of the rookie symposium, which [introduces] an athlete to what they are about to get into. At our event you have other athletes there to talk to them. Half are current athletes and half are retired athletes, so they can hear the stories about what can happen and what will happen because the NFL stands for “not for long.†We’re also starting a foundation for the retired athletes who will need long term care. Our quest is to have the current athletes to donate a percentage every year to the non-profit foundation to help the athletes who are in need.
In working with these athletes do you discover that this is something that plagues African-American players more so than players of other races?
I hate to stereotype it just towards our African-American men or African-American women but the majority who are not taking advantage just happen to be African-American. Not that it’s not happening to other races; you just don’t hear about it as much. There are so many athletes reaching out for help through the NFL that we don’t hear about and they don’t get the help. What we are trying to do is get the 82% [of athletes who are bankrupt two years after they retire] down to at least 65% by 2015 by taking advantage of the show and empowering and education these athletes to a bigger picture.
The next Pro Athletes Business Group show will be held the weekend of (February 19-20) in St. Petersburg, FL. For more information check out their website at www.proathletebusinessgroup.com.
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