ADVISOR SERVICES | CLIENT RELATIONS | PEOPLE | SUCCESSION PLANNING | TAXPLANNING | TECHNOLOGY | YOUR PRACTICE
From Riches To Rags
A former Morgan Stanley advisor may have cracked the code on how to keep pro athletes out of bankruptcy . By Tracey Longo
ONCE THE CHAMPAGNE BOTTLES ARE POPPED AND the excitement of signing a multi-million-dollar pro-ball contract sets in , athletes have traditionally been left to their own devices to manage their money , often when they ’ re fresh out of college with little or no financial literacy or expertise to back them up .
The results can be devastating . Take former NBA star Antoine Walker , who learned about the perils of lavish spending the hard way , running through the $ 108 million he had earned during his 12-year professional career in just two years after he retired .
“ I never understood the value of a dollar ,” the former Boston Celtic told the “ I Am Athlete ” podcast , blaming his desire to live like rapper Jay-Z for his out-of-control spending , which included legendary gambling and the purchase of homes and luxury autos . He declared bankruptcy in 2010 .
He isn ’ t alone . A stark 78 % of pro athletes go broke after just three years of retirement , according to business management firm NKSFB . Fortunately , Walker regained his financial footing in 2013 as a TV basketball analyst , and he ’ s now a con- sultant for Edyoucore , a company that focuses on teaching financial literacy to pro athletes .
The firm has a roster of retired athletes who teach their peers how to avoid his missteps by taking control of their spending , making smart investment decisions and wisely selecting the right advisors .
The firm was the brainchild of financial advisor Drew Hawkins , a three-decade veteran of Morgan Stanley who started the firm ’ s global sports and entertainment division . The experience made him realize how much financial trouble professional athletes get themselves into due to lack of basic financial savvy . Those insights led him to launch Edyoucore in 2019 .
“ Pro athletes squander billions of dollars each year . I wanted to come up with a meaningful solution to provide education we could offer to teams and individual athletes ,” Hawkins says .
The message is resonating with the general managers of many NBA teams and a growing number of NFL franchises , which have hired Edyoucore to teach their incoming rookies and more seasoned players comprehensive financial literacy . “ We teach them to make their wealth outlast what can be a
DECEMBER 2023 | FINANCIAL ADVISOR MAGAZINE | 33