October 17, 2008 Vol. 26, No. 19
Athletes, business owners share similar investing strategies
by John Vomhof Jr. go toward taxes, but the player just financial needs to build a conserva-
Staff Writer
looked at him like he was crazy. tive investment plan, Fabie said.
“You don’t know what you’re talk- “The professional athlete who
Former University of Minnesota ing about, Coach,” he said. “That’s signs a large contract is no different
football coach Glen Mason recalls not how it works.” than the small-business man who
a time when one For Mason, now Senior Vice sells his company for $5 million,”
of his star players President of Business Development Fabie said. “The process we use is
was on the verge for Marquette Asset Management identical.”
of being drafted Inc. in Minneapolis, that exchange Fabie recommends that athletes
in the first round, serves as a chilling example of the put their money in bonds and other
putting him in line pitfalls young athletes can fall into low-risk investments. Of the $800
for a large signing if they aren’t careful. million Marquette administers, more
bonus. He pulled “When they’re making $2 mil- than 40 percent of it is in bonds.
mason
the player aside lion or $3 million a year, they think Players also should live within
and reminded him to be smart with they’re going to make that forever, their means and avoid taking on debt,
his money when he received his first when really the course of their abil- he said. “The risks for professional
NFL paycheck. “Save, save, save,” ity to make that type of money is athletes are not always market risks,
Mason told him. very short-lived for most of them,” they’re personal and professional
“Don’t worry, Coach,” the player Mason said. risks, because until the end of their
replied, “the only thing I’ve bought That’s why it’s important for pro- career they’re never going to know
so far is a $50,000 fessional athletes to hire financial what their earning potential is.”
car for my mom.” advisers they can trust to ensure Of course, the key is for athletes
Mason was their money lasts, said John Fabie, to listen to the people they hire, even
dumbfounded. Af- Marquette’s Managing Director and when they don’t like what they hear,
ter all, the player Senior Client Relationship Officer. Mason said.
hadn’t even been Athletes should seek transparen- “Some of these guys have never
drafted yet. cy in all of their financial dealings, had much money and they really
Turns out the selecting financial advisers who don’t want anyone telling them they
fable
player had received work on fees, not commissions, he can’t buy three Mercedes or this or
a $100,000 advance on his trading- added. that. They’re living in Disneyland.”
card contract. “I still have $50,000 For an adviser, the first step is
left,” the player told Mason. to teach players the value of their
Mason tried to explain that most money. Advisers should evaluate
of the $50,000 in the bank would cash flow and the players’ long-term jvomhof@bizjournals.com | (612) 288-2101
Reprinted for web use with permission from the Minneapolis/St. Paul Business Journal. ©2008, all rights reserved.
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