Athlete Wealth Podcast: Recent Episodes
Zach Miller, Erik Averill, AWM Capital
Join team members from AWM Capital and guests as they discuss key topics on being a professional athlete and navigating the business of your sport.
Before the draft, we often hear agents and families say things like:
- I don’t have any money; why should we be talking to financial advisors;
- I don’t want to put the cart before the horse; or
- We will just wait and interview financial advisors after the draft.
Unfortunately, statements and approaches like these lead to players losing both money and opportunities that are often not recoverable. Mainstream media, some agents, and most financial education in the United States have sent the wrong message that financial advice is just about picking investments.
Let’s look at a few important types of Financial Advice that aren’t picking investments:
- Tax Planning: Taxes are the #1 Destroyer of Wealth; how much will you be paid after taxes; is there a way to structure payments or change contract language to maximize my after-tax draft bonus; are you receiving NIL money now that you need to address?
- Residency Planning: State of Residency can affect your after-tax income significantly; this is an opportunity that is lost if not handled appropriately and contemplated in advance of the draft.
- Financial Planning & Budgeting: Baseball Players are 4x more likely to become bankrupt than the average American; understanding how to avoid becoming part of this statistic by proactively planning from the beginning and not wasting your opportunity.
- Financial Education: The #1 cause of divorce in the United States are financial issues; You need to understand your relationship with money and what it means to you.
- Insurance & Risk Management: Understanding how to protect yourself from liability; do you have the proper auto insurance, umbrella insurance, disability insurance, etc. in place for what your career and life present?
- Estate Planning: Understanding your estate and how to properly manage it; what happens if something were to happen to you; can I protect my privacy by utilizing a trust?
- Real Estate Planning: Purchasing homes, renting out properties both as the owner and the person leasing, and disposing of properties.
This list could go on with numerous other activities that are financial advice that aren’t limited to just buying and selling investments. As you can see, there is plenty of financial advice where expert help is needed BEFORE the draft to maximize your opportunity and truly understand the decisions you are making.
You are different from 99.95% of people in the United States…don’t you think you should also prepare differently?
You found an agent because you believed they were the best person in the world to help maximize your draft contract, you work out with the best trainers available, and you would see the best doctors in the world to protect your career. Why would you do anything differently on the financial side and leave it up to chance?
This is both a business and financial decision, and you need to surround yourself with the most qualified people so that you can maximize your opportunity.
What is the difference between amateur and professional baseball? Money.
Overnight, with your name being called in the MLB Draft and the signing of a contract, you instantly transform into a professional. Even though this might be your first decision based on money, you have been a part of the industry of baseball for years. Everyone around you has been making monetary decisions about you for years. A few examples include:
- Perfect Game has estimated revenues in excess of $80 million
- Name, Image, and Likeness (NIL) is creeping into the amateur ranks
- MLB is an almost $12 billion dollar industry and they have been spending tens of thousands of dollars to evaluate you
- Agents are making financial decisions about what you are worth to their business and whether you are a good investment
The industry of baseball has been preparing for you, but have you been preparing for the industry of baseball?
With everyone else placing a value on you and trying to maximize their return on investment, do you know how you can maximize your value to yourself, or even where to start?
Whether you have the skillsets or not and whether you are prepared for it, you are now the CEO of a multimillion-dollar business. As the CEO, you have the responsibility of whether the business of you will succeed or fail. That is a lot of pressure, but the earlier you recognize this fact, the better you can prepare yourself to handle this responsibility and maximize your opportunity.
One of the most important jobs CEOs have is surrounding themselves with the right team. As a professional baseball player, you don’t just need to hire a team, you need to hire the right team.
Your team should consist of:
- Trainers
- Physical Therapists
- Dieticians
- Pitching/Hitting/Fielding Coaches
- Agents
- A Financial Team
- Mental Health Coaches
- Recovery Specialists
A team like this will put you in the best position to be one of the few players that makes it to arbitration and free agency as well as to avoid the 4 times more likelihood of bankruptcy that MLB players face.
This harsh reality isn’t meant to scare you. Rather, it is to help educate and prepare you to seize the opportunity in front of you. Whether you succeed as the CEO of the business of you is dependent on understanding the opportunity in front of you.
It’s time for you to get to work!
Welcome to the MLB Draft Podcast, the proven playbook to help you navigate the Draft Process successfully.
Our goal is to inform you, support you, and help you achieve the greatest amount of success which we define as:
- Fulfilling your potential to become the best MLB player and;
- Maximizing the financial opportunity that is a byproduct of achieving #1
The challenge: Winning is not guaranteed.
History is littered with "can't miss" players who never made it and volumes of athletes experiencing financial ruin.
The good news is the results are mainly in your control. If you follow this playbook, you will win.
What's at stake?
Scouts, agents, showcases & NIL. You are now a part of an $11 billion industry.
Everyone you interact with is making a business decision. So are you.
The only question is: how confident are you that you are making the right decisions?
Why Listen to Us?
We are former players who have personally walked this path and now guide the best players in the game. This is our business.
- 100+ MLB players represented by 29 different agencies
- MLB clients' earnings of $3,000,000,000+
- 58 1st-Round Draft Picks
- Multiple 1sts Overall Draft Picks
Download your FREE copy of our book: MLB Draft Handbook
Schedule a time to talk
Molly Sewald, the wife of Mariner's closer Paul Sewald, has a unique story to share of their experience in the minor leagues and stewarding their wealth. Molly and I discuss a topic that can be difficult or exciting for others to talk about - choosing a financial advisor.
Molly first shares important context and background on their personal story, which weaves into what feelings they felt when choosing an advisor. Their biggest hurdle was paying another fee to someone else and to quote Molly, "do we really want to pay someone to invest our money?"
Molly shares that after hiring a family office, the value is obvious and far outweighs the cost of the service - and even goes as far as to state that a competent advisor is 'a lifeline' for their family.
Her advice to others who may be experiencing something similar is simple - seek guidance. You never know where you can receive help for your specific situation.
Episode Highlights
- 1:30: Molly shares how she and Paul met in the Arizona Fall League, and how Molly at first thought that Paul was a student at ASU, not a professional baseball player.
- 4:37: Molly discusses her and Paul's time in the minors, and how Paul had to continually prove himself time and time again for every minor league promotion.
- 6:00: In his final year as a minor leaguer, Paul & Molly experienced what may be their biggest emotional setback in that he didn't make the team out of spring training.
- 7:51: A common theme for non-prospects is that they feel like they need to be perfect - Molly shares the weight of that stress of rooting for Paul to be perfect. She even goes as far as to share how her heart would sink if she received a phone call from Paul at the field, fearing that they were going to get optioned.
- 9:45: Molly shares the weight of her stress was recognizing Paul's stress.
- 11:53: Molly shares about when Paul's contract was non-renewed, she was relieved and excited for a new opportunity.
- 14:32: New opportunities bring new options and new confidence - Molly shares the confidence that Paul gained in Seattle, where he became the most important reliever in their bullpen.
- 17:13: Molly shares their personal story of how they handled finances prior to hiring an advisor, which was to save as much money as possible - a plan that every human should have!
- 18:01: When choosing an advisor, Molly shares how their eyes were opened to a lot of planning that is available to them as their wealth grew - tax planning, investments, automation, and even protecting their wealth.
- 18:17: She shares that hiring an advisor was a way for her and Paul to educate themselves, and then ultimately have people on their team who help automate their future.
- 18:48: Knowing what they know now, Paul and Molly recognize that they would not be where they are today without the help of a trusted advisor.
- 20:47: Molly shares that her biggest fear when they were looking to hire an advisor was "do we really want to pay someone to invest our money." She felt like it would just be one more fee that she was not totally psyched about.
- 21:51: Molly admits that after learning about what a family office does and its services, the value created far outweighs the fee.
- 24:00: Simplicity is the goal - and Molly shares how an advisor's job is to simplify their matters and optimize their family's future.
- 25:15: Molly shares that the convenience of having all advice being in a one-stop-shop for taxes, savings, investments, communication with teams payroll, players' agents, etc. further expands on that level of simplicity that they desire.
- 27:00: Money is a tool to be taken of for what's important to you - and Molly shares that its services, and the security of their daughter is what is important to them in regards to money.
- 28:28: Molly's advice to other families is to seek guidance for your situation, and a competent team that works day in and day out for your family.
Stevie Rasmussen, the wife of Ray's pitcher Drew Rasmussen, has a unique story to share of their experiencing true adversity in the big leagues.
Everyone at some capacity knows that there will be hard times for families in the minor leagues. Still, few families are prepared and equipped with the tools to handle the complex circumstances that families will experience.
Drew was drafted in the first round after his junior year - only to have this opportunity taken away due to a failed medical exam. Stevie shares how they have handled and persevered through many a trying time in baseball.
Stevie shares their vulnerable story of how they went from being overnight millionaires to having to return to Oregon State for Drew's senior season - and having to take out student loan debt to fund his senior season.
Stevie's simple yet profound advice to other baseball spouses going through similar circumstances - adversity in the game of baseball is inevitable. How you respond to that adversity and support your family is what truly matters.
EPISODE HIGHLIGHTS
- 2:44 - Stevie discusses how she didn't want to be dating an athlete while at Oregon State, but Drew changed her mind
- 4:18 - Sophomore year of college - Drew received his first Tommy John Surgery. Stevie discusses how Drew felt isolated and not part of the team
- 5:09 - Stevie talks about how prior to the surgery, she saw that her identity was built around Drew and baseball, and the surgery grew their relationship
- 6:12 - After rehab Drew returned to pitch in the College World Series and subsequently get drafted in the first round of the MLB draft
- 6:33 - Drew flew to Tampa Bay to be announced as the Rays first-rounder, only to find out that his elbow was blown out again, and Drew received Tommy John surgery #2.
- 8:45 - Stevie discusses the feelings she experienced during Drew's surgery
- 10:01 - Stevie goes deeper regarding how easy it is to have her identity wrapped up in Drew - even going so far as to introduce herself as "Drew's wife"
- 11:39 - Stevie discusses her feelings of Drew's second surgery - where they went from receiving a $2.1m signing bonus to working landscaping in Corvallis OR being in student loan debt
- 15:55 - Stevie shares the 2 different draft experiences - with the second time being drafted by the Brewers
- 18:40 - Drew's debut was in COVID of 2020 - Stevie, unfortunately, watched the debut in the hotel across the street.
- 21:20 - In 2021, Drew was traded to the Rays, and Stevie shares how this was her roughest part of baseball
- 22:30 - The wives' community is strong - and showed up when Stevie needed them most. Brooke Burnes, wife of Cy Young award winner Corbin Burnes, showed up and helped Stevie pack her entire apartment.
- 27:55 - The Power of the Baseball Wives
- 28:40 - Money does not fix our problems - money is just a tool to be taken care of for what's important.
- 31:50 - Stevie discusses how fortunate they are, and how they optimize their resources for their family, their community, and giving back.
- 35:26 - Stevie discusses the powerful perspective of families navigating the questions of 'can you' afford something vs. 'should you'
- 37:53 - Stevie's advice - adversity is inevitable. Lean on the community and ask for help.
Sarah Garver, the wife of Ranger's catcher Mitch Garver, is passionate about being a wife, mother, and veterinarian. In this episode, Sarah shares why she pursues her career in conjunction with Mitch being a professional baseball player and the benefits her work provides even though she does not technically "need to work."
Given the above, it makes sense why the Garver family phrase is "It's only temporary." Sarah gives a great perspective on why that is their phrase, what it means to them, and how that governs what their family is working towards. Sarah understands that good and bad circumstance are only temporary, and as she states, "you can get through harder times if you understand that it is only temporary."
Sarah's success story is that she has fulfilled her childhood dream of becoming a veterinarian and continued practicing, even after Mitch was traded, after experiencing several cross-country moves and balancing her more challenging job of being a mother. As a veterinarian, Sarah provides her family flexibility, purpose, and application of the knowledge and skillsets she has obtained over many years. Through it all, Sarah affirms that she is a better mother and spouse because of her work.
Sarah's simple yet profound advice to other baseball spouses going through similar circumstances - if you want to pursue a career, do it!
EPISODE HIGHLIGHTS:
- (1:59) Garver Family Story
- (2:10) Beginnings of Mitch & Sarah's relationship in high school
- (3:32) Transition to college - while Mitch was trying to figure out where to play baseball, Sarah began pursuing the education for her career as a Vet.
- (4:12) Sarah discusses Mitch being drafted by the Twins in 2013 and her acceptance to grad school at Oregon State 1 week later.
- (6:40) Sarah and Mitch navigated being a team while having different goals.
- (7:48) Sarah discusses the implications of Mitch being a walk-on in college and ultimately signing after his senior year of college, which included a negative experience with an agent relationship.
- (9:29) How important good advice and representation are as families navigate professional baseball.
- (13:07) Sarah discusses how they navigated their marriage on limited time and money while Sarah was a grad student and Mitch was a minor league player.
- (16:09) How they believed it was important to spend the money to see each other - even when they necessarily did not have the money to do so.
- (16:33) Sarah explains how almost everything in this life is, to quote her, "Only Temporary."
- (18:50) Sarah talks about why she is a Veterinarian and the benefits being a Vet provides to their family
- (19:47) Being clear on what you accomplish matters - even while being the wife of a professional athlete.
- (24:07) Flexibility in her career allows her to continue serving animals, pursuing her passion, balancing work, and being a mother.
- (27:37) Sarah discusses the importance of her career and the positive impacts on her being a mother, being a spouse, and being part of the Garver family.
- (32:56) Sarah's advice to others contemplating pursuing a career - is “just do it and figure it out later.”
EPISODE DESCRIPTION:
Jess Skubal has a unique perspective. She has a deep understanding of what it means to be married to a professional baseball player - her husband, Tarik Skubal, is a pitcher for the Detroit Tigers. She is also familiar with the most significant financial mistakes athlete families make due to her professional background working as a tax CPA for Deloitte, one of the world's top 4 public accounting firms. Jess is passionate about making sure every dollar is maximized, and as we state in the conversation: Investments are a matter of opinion, and taxes are a matter of fact.
Jess gives great insight on both the "WHY" and the "WHAT" related to tax planning and the importance of being able to take advantage of every opportunity available to the athlete.
Jess defines "WHY" as "having more money to do what is important to you.” Jess shares a personal story about how their own proactive tax planning led her and Tarik to fund their niece's college education.
Jess then also gives excellent advice on the "WHAT" by discussing three specific tax planning strategies that are available to the professional athlete and are unfortunately commonly missed:
- Opening an Individual 401(k) plan for the player's off the field income
- Recalculate your W2 received to ensure the player "pays where he plays."
- Executing a 'Back Door Roth IRA' strategy for the player and wife for $12,000 of tax-free investment growth annually.
To ensure you are taking advantage of every opportunity, Jess' simple yet profound advice to other baseball spouses going through similar circumstances - do not be afraid to ask questions of your advisor, and better yet, find an advisor who will answer and accept your questions.
EPISODE HIGHLIGHTS:
- 2:51 - Jess shares the story of how she in Tarik met in High School in Kingman, AZ
- 4:00 - Jess discusses Tarik's journey to the big leagues - including not being highly sought after or recruited out of high school.
- 4:55 - Jess worked as an accounting clerk while they did long-distance dating in college.
- 6:29 - Jess chose accounting as a major because she saw an opportunity to help people who were important to her.
- 8:01 - Jess began her post-collegiate career as a CPA working for Deloitte, one of the Big 4 and most prestigious accounting firms in the world, while Tarik was a Top 100 prospect in the minor leagues.
- 9:49 - While at Deloitte, Jess worked on many clients, primarily as a tax preparer.
- 11:24 - Jess later in her career worked on closely held and family businesses, but as she quotes, her "pride and joy" client was the tax planning work she performed for a family office.
- 12:53 - While working for her family office client, the 'Patriarch' of the family passed away, which generated an almost $40m estate tax liability. The importance of the family's tax planning surfaced by saving "a generation's worth of wealth.”
- 15:00 - Josh and Jess expand on the importance of general estate planning and the importance of estate tax planning to the athlete.
- 16:31 - One of Jess' overarching beliefs is to "ask the question." Often, advisors are not asked appropriate questions by their clients, which causes critical tax planning strategies to be missed.
- 18:07 - Jess expands on the definition of tax preparation vs. tax planning.
- 18:56 - Proactive thinking and tax planning are how you arrive at the most advantageous tax outcomes.
- 19:35 - Tax planning should happen 365 days out of the year - not just when you file your return in April of the following year.
- 20:46 - Players have two streams of income: W2 income earned as an employee from the team and 1099 income earned from all trading cards and endorsement money. Those two different income streams have different tax planning strategies available to the player.
- 21:06 - Jess talks specifics on W2 vs. 1099 strategies, including the importance of estimated tax payments.
- 21:45 - Players can set up a separate retirement called an individual 401k, which, as Jess says, has a 'triple benefit' to the family if done appropriately.
- 23:11 - The individual 401k is different than the MLB Vanguard 401k - because of Tarik's the field income, Tarik and Jess were able to receive a tax deduction for the money that went into the account; the money in the account is invested for their retirement, and with the money saved on taxes, the Skubals were able to fund a 529 plan for their niece's college education.
- 24:18 - Jess expands on the purpose of money and why appropriate tax planning gets you to do 'more of what you want to do.’
- 25:50 - The W2s generated to players could potentially be wrong - which is not well known, even amongst baseball players. Real dollars in tax savings could be missed if the family's CPA does not recalculate the player's 'duty days' schedule.
- 30:46 - Josh and Jess discuss the importance of a Roth IRA and why all players and families should take advantage of this tax-free account.
- 32:40 - Jess discusses the importance of taking advantage of every little opportunity every year to maximize a family's wealth.
- 33:45: Jess's advice to other families - don't be afraid to ask your tax and financial advisors questions. If you do not ask, real dollars could be missed.
There are several questions that constantly come up when we are having conversations with athletes and business owners like:
- What should a “deal” look like from both sides of the table?
- How should an athlete think about branding themselves?
- How are businesses utilizing their newfound ability to participate in NIL?
In this episode of AWM Capital’s Name, Image, and Likeness (NIL) series, we are joined by Anthony Ranaudo. Anthony is a College World Series champion, 1st round draft pick, and former MLB player. Today, Anthony is the owner and founder of Cards and Culture, a store and social platform in the collectibles, art, memorabilia, and lifestyle business that is utilizing NIL deals to help promote his business and the athletes themselves.
Anthony has a unique perspective as both a business owner utilizing NIL, and a former professional athlete who understands the brand building opportunities that come with being a high-profile athlete.
In this episode, Anthony gives us an insight into what athletes should be thinking about in terms of building their brands through NIL opportunities. He and Will discuss the importance of building a network, understanding the marketplace, spotting the right deals, staying present and humble, and more.
Episode Highlights
- 1:50: Perspective on the evolution of NIL in the first year.
- 4:08: How Anthony is utilizing NIL for his business.
- 5:20: Ways for athletes to take advantage of the NIL opportunity.
- 7:40: General perception of NIL versus reality.
- 12:30:What roadblocks are currently present for businesses entering into the NIL space?
- 13:50:Business and athlete use of trademarks and logos.
- 15:45:How and why athletes build brands and networks as a college athlete.
- 21:35:Social media presence as a high school athlete.
- 25:20:What kind of deals should an athlete look to enter into?
- 28:25:The future of NIL and what the landscape will look like in the coming years.
- 31:25:The importance of educating yourself on how to best utilize NIL
If you have any questions or would like to reach out to Anthony or Will directly, please email them at:
Anthony Ranaudo – Kylie@cardsandculture.com
Will McGuffey – WMcGuffey@AWMCap.com
In the constantly evolving landscape of NIL, understanding university guidelines as well as the resources that are available is paramount for success. From understanding state laws and NCAA rules, to what activities are allowed, or even how to manage taxes, there are several important topics that every student athlete should know.
In this episode of AWM Capital’s NIL Podcast Series, Taylor Jacobs, Compliance Coordinator at LSU, talks with Will McGuffey about how to effectively participate in the NIL marketplace. Taylor shares her insight on how student athletes and their families should prepare for and participate in NIL, navigating agent relationships, and how NIL can make a positive impact in their life. This episode is a great starting point for understanding how universities work with their athletes to effectively participate in NIL activities.
While there are still a lot of uncertainties and unknowns that surround NIL rules and regulations, this episode should help settle some of those worries by giving listeners an inside look at how universities are helping prepare their student athletes. With more and more schools implementing similar policies and educational programs, Taylor’s advice will help athletes at all schools feel more confident in where to turn for guidance as they prepare to enter the world of NIL.
Episode Highlights
- 1:00: A look at Taylor’s responsibilities with NIL at LSU.
- 1:50: The evolution of NIL from its inception.
- 3:30: A discussion about what NILSU is and how schools are helping educate athletes and businesses.
- 5:43: Common questions that athletes and businesses have about NIL.
- 8:45: What type of disclosure is required for NIL agreements?
- 10:48: Agents and NIL, what is allowed?
- 12:57: Agent registration with the university and the state.
- 15:43: Rules about the length of NIL contracts.
- 18:47: How athletes can use NIL to prepare them for life after sports.
- 19:30: A look at resources available for high school athletes to help understand NIL.
- 21:56: A beginner’s look at taxes and money education for athletes.
- 25:02: The effects of possible changes in state laws and NCAA rules.
- 28:12: Important advice for anyone who wants to participate in NIL.
If you have any questions or would like to reach out to Will or Taylor directly, please email them at:
Taylor Jacobs – TJacobs@LSU.edu
Will McGuffey – WMcGuffey@AWMCap.com
As a college athlete interested in NIL deals, how can you connect with potential partners?
With NIL being such a new concept, there are several ways outside of the traditional models of procuring endorsements that are showing up as options for student athletes. One of these new platforms is MatchPoint Connection, which is a two-way marketplace that helps student athletes and other social media influencers connect for endorsement purposes. Through their web-based app, student athletes can connect and partner with brands both locally and nationally to earn money through various types of endorsement deals.
In this episode, Jonathan Pixley, Vice President of Athletic Operations at MatchPoint Connection, sits down with AWM Capital’s Will McGuffey and Zach Miller to discuss what MatchPoint Connection is as well as the current landscape of NIL for college athletes. In what is a constantly evolving marketplace, Jonathan shares his insight on what the NIL marketplace looks like, and the direction that it is trending. One point that Jonathan believes that all athletes should understand is that while making money with current NIL opportunities is important, the focus should always be placed on being a good person and your preparation and performance on the field.
With many student athletes not knowing how to capitalize on the NIL opportunity, Jonathan gives our listeners valuable insight into the processes that have been successful for student athletes so far. Whether it is a proper valuation, understanding your marketability, or tips into curating and maintaining a successful brand, Jonathan, Will and Zach discuss how athletes should be looking at the NIL opportunity.
Episode Highlights
- 2:05: What is MatchPoint Connection?
- 4:30: Why was Matchpoint Connection founded and what services does it offer student athletes?
- 5:35: What does the NIL landscape look like for a student athlete?
- 6:57: Are there any changes to NIL rules for NCAA athletes that are on the horizon?
- 8:30: A discussion on current trends in the NIL marketplace and what are athletes able to earn.
- 10:10: How should student athletes value themselves in the NIL marketplace?
- 11:50: What should a student athlete do when managing their brand and image.
- 13:35: NIL as a recruiting tool for college athletics.
- 15:58: Discussion on how NIL will impact the future of NCAA sports.
- 19:00: How to succeed on and off the field with NIL.
If you have any questions or would like to reach out to Will, Zach, or Jonathan directly, please email them at:
Jonathan Pixley – Pix@MatchPointConnection.com
Will McGuffey – WMcGuffey@AWMCap.com
Zach Miller – Zmiller@AWMCap.com
Since July 2021 when the NCAA opened the floodgates with its interim policy, Name, Image, and Likeness - or “NIL” as it is more commonly referred to - has been a hot topic. Unfortunately, while NIL is constantly being seen on social media or when watching press conferences where college football coaches are responding to allegations made by other coaches about it’s unfair use in recruiting or the transfer portal, there is not much clarity or information out there for the student athlete or their family to rely upon.
In this episode, Will McGuffey sits down with NIL expert David Fleshman, who is a partner at the Breazeale, Sachse, & Wilson law firm in Louisiana and an Adjunct Professor of Sports Law at the LSU Paul M Hebert Law Center, to discuss the background and basics of NIL and how it affects amateur athletes.
With everyone asking questions about making money while maintaining eligibility as an amateur athlete, Will and David discuss what an athlete and their family should do as well as where they can look for guidance.Whether you are a high school athlete or a current collegiate athlete, there are several steps that should be taken to ensure you stay compliant and protect your athletic eligibility. In the constantly evolving NIL world, everyone should understand that each state, university, conference, or high school athletic association could possibly have different rules that will need to be understood and followed. With every individual’s situation being different, David discusses the importance of knowing where to look and what resources should be utilized to maintain eligibility.
Episode Highlights
- 2:20: What is NIL?
- 6:25: What is the history of NIL for athletes participating in NCAA sports?
- 11:20: What rules has the NCAA placed on athletes regarding NIL?
- 12:35: A guide on where an athlete should look for guidance on what laws and rules are applicable to them.
- 16:20: Do NCAA Conferences have any rules that need to be looked at when entering an NIL deal?
- 17:50: What should a high school athlete who wants to enter an NIL deal do?
- 19:35: Will an NIL deal from high school affect college eligibility?
- 21:40: Are there different laws in different states and how can these affect eligibility?
- 25:50: NCAA rules against “pay to play” and how NIL is different.
- 30:00: “Collectives” at NCAA schools and how they are used.
- 33:30: Where should an athlete look to find state and school rules?
If you have any questions or would like to reach out to David or Will directly, please email them at:
David Fleshman – David.Fleshman@bswllp.com
Will McGuffey – WMcGuffey@AWMCap.com
You have worked hard for your money, which is why it never feels good when you see how much you lose to taxes. Unfortunately, most players neglect ongoing tax planning, which results in paying more in taxes than they should.
Depending on your tax bracket, you can save paying 40% to 50% in taxes on a portion of your self-employment income (1099 income) or you can maximize the opportunity to grow your money tax free.
In this episode of the MLB Players’ Podcast, Erik Averill, CPWA®, CFP® and Travis Chick, CFP® break down everything you need to do before the December 31st deadline.
If you can answer no to any of these questions, you are missing out.
- Has your CPA® prepared a year-end tax projection showing you the projected taxes you will pay or be refunded for 2020?
- Have you opened an Individual 401(k) by December 31st?
- This is NOT your MLB Vanguard 401(k)?
- Has your Certified Financial Planner implemented the Back-Door Roth IRA Strategy?
Most Common Mistake We See
- Log-in to your account, do you have a SEP IRA?
The most common mistake we see is the recommendation to open a SEP IRA. This is a great tool for the mass affluent. However, if you are in the highest tax bracket it is not ideal for you. If you have a SEP IRA, it is a red flag that you advisor does not have the specialized expertise you need.
- Limitations of the SEP IRA
- The type of contribution you make (Roth or Traditional)
- The amount of contribution you make (excludes an employee option)
- Violates IRA aggregation rule, preventing the Back-Door Roth IRA strategy which limits your ability to grow your money tax free
Episode Highlights
- Differences between W2 and 1099 income (2:04)
- What is an Individual 401(k)? (2:36)
- The difference between an Individual 401(k) and the MLB Vanguard 401(k) (3:10)
- Options for draft players and minor league players (4:06)
- Why a SEP IRA might not be your ideal option (5:05)
- The difference between tax planning and tax compliance (6:05)
- The Backdoor Roth IRA (8:01)
- How much can you actually contribute? (10:26)
- Tips for agents and parents (12:37)
- Should you set up an LLC? (13:30)
This year marks the inaugural PGA Tour University class that will have immediate access to the Korn Ferry Tour and Mackenzie Tour. Like with any new system there have been lots of questions, plenty of conflicting thoughts, and some incorrect information swirling, that may influence players decisions whether to turn pro or come back for one more year of college golf. We decided to go straight to the source.
Senior Director at the PGA Tour and creator of the PGA Tour University, Brendan von Doehren, joins us to walk through the genesis of PGA Tour U, how the system works, and clarifies some of the questions and misconceptions we have been hearing on the ground. If you are a player, coach, or part of their inner circles you do not want to miss this episode.
Episode Highlights
- (1:58) How was PGA Tour University created?
- (5:23) Who had input and was consulted?
- (8:42) Benefit to the players and the Tour?
- (11:32) Who is eligible in the rankings?
- (13:16) How do the rankings work?
- (14:00) What events count and why?
- (17:44) What access to Korn Ferry and other tours is available?
- (26:48) How much movement in the rankings is expected the last couple months?
- (31:23) How will the rankings look next year?
- (34:29) Ho will players in the rankings this year who come back, fit in to next year’s rankings?
Professional Golfers have one of the most unique tax situations of all individuals. We tend to see the same mistakes made over and over when we review new clients previous tax returns. It typically comes down to a lack of knowledge and expertise in how to work with athletes. Your team should be doing everything possible to keep as much money under your control now and minimize your tax liability over the long haul as well.
In this episode we will discuss the three most common Mistakes that we see when it comes to taxes. There are different strategies that professional golfers should be utilizing in high tax years and low tax years, and there are some foundational planning items that should be in place year-round. Why pay more in taxes than you have to?!
Episode Highlights
- (1:10) The two things we see wrong with quarterly estimated taxes
- (3:49) Why your tax planning should be a 365 day per year endeavor
- (4:30) Not taking advantage of retirement plan contributions
- (5:13) SEP IRA vs individual 401k
- (8:37) Actions in a low tax year
- (10:31) Mistakes with residency days
Download your free resource at awmcap.co/pga15
The stakes are higher on Tour: the competition, the opportunities, the money. With this comes even more of a need for expert advise and planning. As an elite athlete, you NEED and DESERVE to have a team that is built to serve elite athletes. Unfortunately, the existing landscape of financial institutions is built to serve the general public.
In this episode we will explore what a wealth management team should be doing for you. You have a unique situation that requires unique solutions. You also have a unique opportunity to secure your financial future at an early age and have a large impact on your family and community. Make sure your wealth management team already understands the complexities that you face, and that their incentives align with your goals.
None of us are walking down the fairway bragging about the returns we got last year with an index fund, or the interest we are getting in our bond portfolio. Whether we should or not is another topic. But everyone seems to know someone that knows someone who can get them in on a private deal that is sure to have amazing returns with very little downside.
Private investing versus public investing is a very different endeavor. Over the next few episodes we will dive deeper into the types of private investments, when they may be appropriate, and why they should be considered. We will have experts in each segment join us to uncover the most important facts and questions to be considered around private investing.
Episode Highlights
- (2:05) Defining the public market vs private market
- (3:22) "In the short term, the stock market can be a voting machine, but in the long term it's a weighing machine." -Benjamin Graham
- (4:14) Accessing outsized returns in private markets
- (5:32) How the biggest and best venture capital and private equity funds are similar to the best college football teams
- (8:26) What are the different types of private investments?
- (9:22) Questions to answer before getting into private investments
- (10:33) What are the risks to look out for? Liquidity, access, and lack of regulation
- (14:35) When are these investments appropriate?
- (16:21) Private investments towards the end of your athletic career
- (17:48) What we're covering over the next few weeks
More info at pgaplayerspodcast.com
Though tax planning is a year round process, the culmination of tax planning each year is tax filing. Most people are familiar with filing their taxes by April 15th, but what are you doing throughout the year to make sure that you are being as tax-efficient as possible?
This week we discuss the different tax documents you will be receiving and what you and your tax team will need to make sure all is accounted for. We go over some of the commonly overlooked items, tax deductions specific to professional golfers, and clarify some of the myths on what you can and can not deduct.
Episode Highlights
1:30 – What you will get from the Tour
2:00 – Tax documents you need
3:00 – Avoid amending your taxes: often overlooked tax documents
3:45 – Foreign tax documents
5:12 – Ways to reduce what you pay in taxes
7:15 – “Tax efficiency is going to be such a good way for you to maximize the money in your pocket now”
8:30 – What is deductible and what is not deductible
The single most important driver of your Net Worth is your physical ability to play golf. If you are hurt or sick and cannot play for an extended period, this has significant impact on your earnings. Not only does it impact your on-course earnings, but it can affect your endorsement deals as well. So why is disability insurance one of the most overlooked parts of players’ financial structures?
The Tour has a disability policy for players with certain exempt status. It is meant to help if you get hurt/sick, but not cover everything. It is important to know what you get as a benefit and when you can receive it if you were to be eligible. Chances are what the Tour supplies, (PGA or Korn Ferry) is not going to be enough to cover what you need. In this podcast we will discuss the unique disability needs of professional golfers and what you can do about it.
Episode Highlights
- 2:00 – “If you get hurt or sick…what are you going to do?”
- 3:22 – Coverage on the PGA Tour
- 4:20 – When would I start getting the benefit?
- 6:12 – Coverage on the Korn Ferry Tour
- 7:15 – Protecting your wealth and future wealth
- 8:03 – “This is one of the biggest gaps I see”
- 8:57 – Top players coming out of college
- 11:20 – Rely on your team to determine the right amount and right type
- 13:00 – Career Ending Injury
- 13:30 – Anthony Kim example
Waste Management Open week is unlike any other on tour. It brings with it all sorts of craziness: sometimes good sometimes bad. This is a good reminder that sometimes things go wrong off the golf course and can potentially have a major impact on your finances if not protected correctly.
As an athlete you are a public figure and for all the good that brings, it can also be a target on your back. From minor car accidents, someone getting hurt on your property, to dog bites and parties, if someone sees an opportunity to sue, they will. Make sure you understand how to protect yourself from unforeseen liabilities and keep your personal assets and business assets separate so that you maintain proper protection.
Becoming a professional golfer is an exciting time. A ton of hard work, dedication and sacrifice put you in the position to be able to turn pro. Until now, most of what you have had to focus on is ON the golf course. You are now becoming a business, and with that comes OFF the course demands and needs that can take time and focus away from your game.
Follow these 5 steps when turning pro to set yourself up for success. The key to maximizing your potential is to eliminate distractions and take advantage of every opportunity placed in front of you. These steps will put you in a position to do just that.1:15 – Who is on your team?
Episode Highlights
- 00:45 – Who is on your team?
- 1:53 – Taking care of your body
- 3:01 – What do you want from an agent?
- 4:04 – Why a wealth management team not a financial advisor
- 5:28 – Questions to ask a Wealth management team before you hire them
- 7:58 – Get a second bank account and credit card
- 8:49 – Should you set up an LLC
- 9:43 – Where are you going to get better? “Good players push each other”
- 12:06 – What happens if I get hurt?
- 14:01 – “The best investment that you can make is in yourself.”
As a professional golfer you have been given an opportunity to lead by example. Many athletes use their platform to lead in different ways. Giving back to charities and foundations can be a big part of leading your community. I highly encourage you to get involved, whether financially, with your time, or both.
When making donations, raising funds, or starting a foundation make sure that you know the keys to success and how to maximize your impact. Being strategic with how you donate and are financially involved can have a bigger benefit for the places you support and create more savings on your taxes. Be the best in every element of your world!
Episode Highlights
- The importance of giving back (00:01)
- Figuring out who to support and how to support (00:54)
- Should you consider tax deductions with giving? (01:46)
- Starting a foundation, donor-advised funds, and direct giving (02:47)
- Donating shares of stock (04:31)
- Things to consider before starting a foundation (05:41)
- The goal of maximizing your net worth (7:30)
As a professional athlete, you are presented with all sorts of investment opportunities. Is buying into an IPO a good idea? What do you need to know before investing in a company that has just gone public? Are you compensated for the added fluctuation in price with higher average returns?
Let’s look behind the curtain and understand what risks we are taking that may not be obvious. We will also discuss opportunities to possibly invest in companies before their IPO to increase potential returns. Lastly, and most important, where should you be financially before you even think about investing in start up companies, whether through an IPO or Venture Capital.
Episode Highlights
- 2:02 – Door Dash's stock price was up 80% from it's IPO price on day 1, who made all the money?
- 4:06 – Where is Door Dash’s stock price 1 month later
- 5:30 – How do IPOs do in the long run?
- 6:48 – How to get in before the IPO, going from $22/share to $182/share
- 8:00 – What money should we use to invest in higher risk investments like IPOs
- 10:42 – Who to talk to about investing in an IPO or new venture
Though you travel all over the world during the season, where you spend time in your off weeks can impact your taxes. There can also be a lot of bad advice when it comes to your permanent residence that you might receive that typically does not work and can end up coming back to bite you later. There is also a lot of bad advice out there when it comes to what matters when proving where your state of residence is, that typically does not work and can end up coming back to bite you later.
In this episode, Aaron breaks down a framework of the two biggest questions to ask yourself when deciding where you want to live, the differences between how your on-course and off-course earnings are taxed, and shares some of the implications to your taxes and your game that you may not have considered before.
Episode Highlights
- The two big questions to consider when deciding where to live in the off season (00:56)
- The differences between on-course and off-course earnings (1:50)
- The important considerations in filing for residency (3:32)
- The details states look for when determining your residency (5:08)
- If you have kids – everything else with residency goes out the window (5:51)
- Why you shouldn’t determine residency just on tax savings alone (6:04)
- The questions to consider when determining your permanent residence (7:30)
As a professional golfer, tax optimization is one of the most important areas of your wealth to address. While investments are a crucial part of growing your overall net worth, the savings you could see on tax optimization could completely blow out of the water any of your annual investment returns.
In this week’s episode, Aaron is joined by Super Bowl champion, 8-year NFL veteran and AWM colleague Zach Miller to discuss some of the strategies for professional athletes to optimize their tax situation, and weigh the pros and cons of a SEP IRA vs an Individual 401(k). Make sure to listen to find out the one thing to look for to see if your financial advisor is tailoring your plan like a pro, or treating you like the general public.
Episode Highlights
- The importance of taxes (1:38)
- Investments are a great part of your financial picture and we want to do our best on the investment side, but we're paying 50% in taxes in most places…If we can optimize those taxes, that's going to completely blow out of the water any investment returns.” – Aaron Goldberg
- SEP IRA vs Individual 401(k) (2:36)
- The 3 reasons why you’d want to use an Individual 401(k) (3:16)
- Zach’s experience with endorsement income (7:56)
- What professional athletes should consider to have tax savings in the future (11:46)
One of the first pieces of advice many pro athletes hear, regardless of the sport, is that they should set up an LLC or corporation although the reasons given for doing this can range anywhere on the spectrum of the plausible to absurd. Our job here at the PGA Players’ Podcast is to demystify the amateur advice and instead provide the professional advice you deserve.
There are certainly advantages to making this move for the right athlete. Specifically, having an LLC set up can help protect you from unforeseen liabilities and can also help you avoid or reduce some of your taxes.
Join Aaron Goldberg, CFP®, and business partner and AWM Capital co-founder Erik Averill, CFP®, CPWA®, CKA® as they discuss this topic and more including:
- The two main advantages to setting up an LLC (1:05)
- How the PGA is different than other sports like MLB or NFL (2:03)
- The importance of protecting against liabilities (3:03)
- Piercing the corporate veil (5:01)
- 1099 vs W2 income (6:47)
- “From the tax point of view, this is where golfers are so unique compared to other athletes.”
- When it can be beneficial to not be taxed as an S corp (9:03)
- Ongoing tax planning: It’s all about your financial structure (9:28)
- Name, Image, Likeness: The important steps for college golfers, agents, and family members (10:15)
- Advanced planning (11:18)
- Keeping income in the household, lowering tax liability (12:53)
- 401k or Roth 401k: Why you need a personalized, customized solution (13:31)
With the PGA Tour calendar wrapping up this week and players are heading into the off-season, now is a pivotal time to take advantage of potential tax planning opportunities for this year and dive into financial planning for 2021 and beyond.
As you’re setting up your off-season plans with your swing coach, trainer, and on-course team, now is also the time to check in with your wealth management team. You’re making plans to set yourself up for success on the course next season; why not take the time to review your financial plans as well?
In this week’s episode of the PGA Players’ Podcast, I discuss the important steps you should be taking in the off-season to wrap up this year and prepare yourself financially for the New Year, so you are free to focus on what really matters: winning PGA Tour events.
Key Topics Discussed:
- (1:11) the importance of year-end planning for pro golfers
- (1:35) The equation for high end performance
- (1:53) Tax planning at end of the calendar year including retirement plan contributions, corporation filings, and more.
- (3:21) Setting yourself up for financial success next year
- (4:53) Communicating personal expenses and goals
- (5:49) How much are you spending? Building a sustainable lifestyle
- (7:12) Leaving a legacy through charitable planning
- (8:38) Human capital and maximizing sponsorships
- (10:45) Putting together an off-season financial plan
As a professional golfer, your financial situation is complex: you’re in the highest tax bracket, you only receive 1099 income as opposed to W2s, you have a public financial status, and you play and are taxed in multiple countries throughout the year – just to name a few.
Your situation is unique, your solution should be, too. That’s the inspiration behind the PGA Players’ Podcast – where each week, former Korn Ferry and PGA Tour golfer turned private wealth advisor, Aaron Goldberg, CFP® will discuss the most important questions you should be asking, the nuances to your situation, and how to make sure you are able to build wealth and create a lasting legacy.
In this week’s episode, Aaron is joined by co-founder of AWM Capital and former professional baseball player Erik Averill, CFP®, CPWA®, CKA® to discuss some of the ways athletes financial situations differ and some of the most important questions to be asking.
Key Topics Discussed
- Who is qualified to be your financial advisor? (1:59)
- What makes your financial situation unique as a professional golfer? (2:24)
- The implications of being in the top 1% of earners (3:04)
- Where should players be getting financial information? (6:22)
- “But if your parents aren’t professional athletes, they’re financial advisor is probably not right for you because they don’t know what to look for” (7:15)
- “What I think is almost equally dangerous is the mediocre advisors, the ones that don’t know what they don’t know.” (7:18)
- Your job as an athlete is to perform on the course – not to know everything that goes into your financial world (7:54)
- “when you hire people that have had that experience with other athletes, whether it be baseball players, whether it be football players, whether it be golfers, they know the pitfalls that come up and the ways that we can maximize net worth for our clients by capitalizing on their human capital and making sure that we take advantage of every opportunity that they have” (7:58)
- How different are golfers when it comes to taxes? (9:55)
- “You are the business, your game is the business. You're going to be the biggest driver of your financial future as a player” (11:29)
- What’s the most important question I should be asking of my financial advisor to see if they’re qualified? (13:29)
“What is your number?” is one of the most frequently asked questions to a player as the MLB draft approaches every summer. MLB teams want to know it, your agent wants to know it, the coaches at the college you are attending or committed to want to know it, but what is it and how do you calculate it?
With everyone asking what this number is, how should you and your family calculate this number and who is qualified to help you understand the true value of the opportunity that you are foregoing to begin your professional career?
In this episode, Travis and Will look at how to analyze the opportunities you have and give insight into the questions that should be asked. While your agent/baseball advisor should be uniquely qualified to help you determine your market value, you need to ask if they are also qualified to calculate your human capital and the opportunity cost involved with deciding between professional baseball and college baseball.
Episode Highlights
- 1:20: What factors go into determining a player’s market value?
- 3:20: How a schedule can impact your market value.
- 5:00: How you can maximize your exposure during the draft year.
- 7:45: Looking at how your personal value and market value line up against each other and if you are “signable.”
- 12:15: Information flow from MLB teams and when your market takes shape and defines itself.
- 13:30: Beginning to understand a personal value calculation and the variables and numbers that should be included.
- 17:20: Adding value: Finding a CFP who works with athletes like you to help you define and calculate your personal value.
- 20:00: Advance preparation helping remove emotion and mistakes in the MLB Draft.
- 21:35: Continued development and investing in yourself and how this can pay dividends in your professional baseball career.
- 28:50: Why parents should be as involved as they can be in helping their child determine their personal value.
The MLB Draft is starting to change from a possibility to a reality. What are some of the most common questions that prospects and their families start asking their financial teams at this point in the year as they prepare to make their big draft decision? What are some nuances that most people are missing heading into July?
From the realities and importance of a mock draft in March, to discussing spending habits and purchasing your first car, to what the value of the College Education Plan really is, Travis Chick and Will McGuffey break down a number of interesting topics in this week’s podcast.
These topics are coming from current and former MLB Draft families and prospects, as well as Travis and Will’s real world experiences in walking through the draft process numerous times. They share inside information that is important to know heading into the MLB Draft to make sure all angles are covered when making the decision whether to go to college or become a professional baseball player.
Deciding whether to become a professional baseball player or whether to enroll in college is a lifechanging decision, and properly educating yourself well in advance is the best way to prepare for the business decision that you will make in the next couple of months.
If you have any questions or topics that you would like addressed in future segments, please feel free to reach out to Travis (Travis@AWMCap.com) or (Will WMcGuffey@AWMCap.com).
Episode Highlights
- 00:30 – What do the newest Mock Drafts mean?
- 2:00 – How should I think about changing my residency?
- 6:00 – Should I buy a new car immediately after the draft, and how should I look at the purchase and use of a new vehicle?
- 9:35 – What is credit, how do I establish it, and why is it important?
- 12:40 – What is the College Scholarship Plan and how much should I be asking for from MLB teams?
- 20:40 – What does my signing bonus mean to me, and how should I start investing, and what does it mean to invest in my career?
- 27:00 – What is investing in a private market?
- 32:00 – The importance of your 18-year-old self taking care of and looking after your 60 year old self when making financial decisions.
We continue our MLB Draft Podcast series as we sit down with the Toronto Blue Jays Midwest Crosschecker C.J. Ebarb. In this episode, C.J. pulls back the curtain to give players and their families valuable insight on the scouting process through the eyes of an MLB organization leading up to the MLB Draft, as well as what makes players successful once they are in professional baseball.
With so much information about mock drafts and rankings available through the internet and social media, it is sometimes hard to manage everything without being overwhelmed. C.J.’s insight into the evaluation process that an MLB organization goes through before the draft is invaluable and lends perspective on what is important, and how to take a step back and drown out the noise during the year before the draft. We also discuss how education and surrounding yourself with the right support systems before the draft and in professional baseball have helped similarly situated players be successful in their careers.
Passion, work ethic, and skill are all important attributes that MLB teams want to see and feel comfortable with before drafting a player. Throughout this podcast, C.J. talks about the importance of these characteristics, how they can ultimately positively impact the way that a team values a player in the draft enough to invest in them, as well as how these same attributes help a player achieve their full potential.
Episode Highlights
- (2:30) Mock Drafts – What do they mean and do they actually impact where you will be drafted?
- (3:54) Who are the different scouts that will come watch me from an MLB organization?
- (5:37) What is the importance of the summer before your draft year?
- (6:30) Is there an organizational philosophy on a certain type of player that you look for?
- (8:30) Do MLB organizations think it hurts a player’s leverage to hire a financial team before the draft?
- (11:30) In-home meetings with teams and the education process for a player - learning that baseball is a business and preparing yourself for it.
- (14:25) Traits that show a team that a player is ready to handle the rigors of professional baseball.
- (17:45) Is velocity the most important thing that MLB teams look at and should that be your main focus?
- (21:45) The pressures that players face during the draft process from MLB teams, friends, and social media, and how to handle this.
- (23:05) What makes a player have a successful transition to professional baseball?
- (27:00) How MLB teams are helping develop their players in different ways to handle the workload more efficiently.
- (30:55 Health is opportunity – Why and how you should invest in yourself on and off the field.
- (35:08) Can my agent help me get drafted higher?
- (37:40) Enjoy the process – Finding perspective in the last few months before the draft.
We continue our MLB Draft Podcast with another installment of our College Coaching Series as we sit down with Louisiana State University Recruiting Coordinator Nolan Cain. In this episode, Coach Cain sharesexperiences and stories as both a player and coach at LSU and in professional baseball, as well as other advice gleaned from teammates and players that he has coached.
His journey from winning the College World Series as a player in 2009 to today as the Recruiting Coordinator at his alma mater gives him great insight into the realities of the day-to-day life and thought processes of individuals that have been successful both on and off the field. Coach Cain gives a fascinating look into several topics including the effects of Covid on their roster, why having a plan off the field frees you up as a player on the field, what a network is and why it matters, and how technology is constantly changing and shaping the game.
Having a cohesive plan that was formulated through education and preparation off the field has shown to be advantageous for players during both their college and professional careers. Coach Cain’s insider perspective continues to shed light on the importance of preparing yourself well in advance of the MLB Draft and surrounding yourself with the right people who can provide you the right information to make sure that you are making the best possible decision when it comes to choosing between attending college or pursuing professional baseball immediately out of college.
AWM Capital's Will McGuffey and Travis Chick interview Coach Cain and cover topics and questions like:
- (1:00) Navigating how CoVid has impacted the MLB Draft and college roster construction.
- (4:58) How to keep players focused on today and the pressures that players face.
- (8:10) How to handle expectations and the perspective of players facing important decisions during their journey as a college player.
- (12:10) Why having a plan and educating and preparing yourself off the field is important for players to be able to have success on the field.
- (17:55) The negative impact of making an emotionally based business decision.
- (20:00) How playing freely with little pressure can change your perspective and outcomes on and off the field.
- (22:15) Market Value v. My Value…what is it?
- (24:50) If you aren’t getting financial advice from someone in the sports world that understands your contracts and career, you aren’t getting the whole picture when making a life changing decision.
- (26:28) Why is my network important and how does a college impact my network?
- (30:15) Philosophies surrounding the MLB Draft and a different perspective on how to look at your career.
- (33:30) Technology in baseball and how it has changed the way players are developed.
- (40:20) The collaboration between MLB and NCAA Baseball, and how the two actually work together.
- (45:00) Social media, perspective on who you are, and why every path is different.
Seeking qualified advice is the best way to remove emotion from the upcoming business decision you will be faced with when deciding to sign with the MLB team that ultimately drafts you. In this episode we sit down with Texas A&M University Recruiting Coordinator Justin Seely who shares experiences and lessons from players and families who have gone through the MLB Draft process over his last 11 years.
Coach Seely has had a front row seat to watch over 60 of his players from Texas A&M get drafted and receive over $37,000,000 in signing bonuses. He has also been involved with numerous others who had committed and signed at Texas A&M that were ultimately drafted out of high school and joined the professional ranks immediately. His insider’s perspective gives a unique view into the decisions that families face and the successes that he has seen.
Properly educating yourself and seeking qualified advice is the best way to remove emotion from the upcoming business decision you will be faced when deciding on whether to sign with an MLB team or attending college. While we often hear from families and agents that “we don’t want to put the cart before the horse” or that “hiring a wealth management team costs you leverage with teams”, this episode will show you that those lines of thinking are incorrect and that you need to fill your cart with knowledge and education to actually gain leverage and better prepare for making the most important decision of your life.
AWM Capital's Will McGuffey and Travis Chick interview Coach Seely and cover topics and questions like:
- (00:35) Coach Seely’s background and experience navigating the draft
- (3:38) How to properly value yourself as a player
- (5:35) When should I start looking for financial advice, and who should I look to for that advice? How do I better educate myself about the financial implications of becoming a professional now?
- (7:34) Where should I look for information about the business decision I am about to make?
- (10:16) The importance of removing emotion from the decision making process
- (11:23) What have players in my situation done that has helped them be successful?
- (15:28) How do I place a value on the university that I plan on attending?
- (21:28) How can I avoid mistakes in the MLB Draft process that will impact my life?
- (25:59) What is the College Education Plan offered by MLB?
- (29:30) Important qualities and experience in the professionals that a player surrounds themselves with when seeking advice on the MLB Draft
- (33:05) Who has worked with people in your situation? Who understands what your career actually looks like?
Due to COVID-19, no matter what MLB draftees sign for – the maximum amount they will receive in the first calendar year is $100,000.
So, do you need a financial advisor?
After taxes and agent fees there can be as little as $30,000 left which will be used to live on. Nothing really left to invest. Seems like hiring a financial advisor can wait until next year.
If you’re only talking about investing, we agree.
However, are any of the following “financial decisions” important to your family?
- How much money is enough to forego/continue your college education?
- How is the signing bonus taxed?
- What strategies are available to minimize taxes?
- How to handle 1099 endorsement income?
- How to evaluate Team 401(k) options and individual retirement plans?
- Do you have that knowledge, skills and discipline for healthy money habits?
- How to protect your new net-worth from lawsuits and fraudsters?
If the answer is yes to any of these, that means you have a lot of work to do that has nothing to do with investing the money.
Most "financial advisors" reduce your life down to only the investments their company allows them to manage and charge on. Your expectation of a financial advisor should be that they should be able to provide advice on all your finances, not just on the investments that their company happens to sell.
You don’t need an investment broker, especially one that gives you hitting lessons. What you need is a Certified Financial Planner Professional who manages your entire net worth.
You’re making the most important financial decision. Don’t leave it to chance.
MLB Draft Podcast with Erik Averill, CPWA®, CFP ® and former MLB Pitcher, Travis Chick, CFP ®.
Episode Highlights
- New signing bonus structure (:36)
- When should you hire a CFP®? (2:35)
- College or pro? (4:01)
- The importance of qualified financial advice (4:34)
- What is an appropriate signing bonus number? (6:42)
- The value of human capital (7:27)
- Should you get qualified financial advice before the draft? (7:54)
- How to find an expert (9:28)
- Finding more resources on navigating the draft (13:03)
- Being proactive in your search (15:40)
On this week’s episode, we’re honored to be joined by Todd Seigler, father of Anthony Seigler – first round draft pick with the New York Yankees. We get to hear from Todd on what the draft process was like from the perspective of family members and in working through these areas together as a family.
As a parent going through the draft process, it can feel like everybody is painting a rosy picture about how perfect your son’s game is – it can be hard to sift through all the feedback using data to separate out sales pitch from reality. There are also challenges in setting good boundaries to maintain family bonds, and help to make intentional decisions about the long-term future that don’t rely solely on emotions or chasing shiny things.
Todd offers a lot of helpful insight into this process and throughout the episode, he covers topics such as:
- Going through the draft process from scouting during senior year season to draft day
- The potential of getting distracted by the wrong things that can seem like really good things
- How to have good family conversations to set healthy boundaries
- The importance of staying faithful and committed to your routines
- Avoiding “Draft intoxication”
- How they handled choosing the right people in their inner circle
- What draft day was like for family
- What the transition to pro has been like
- Looking back, what things he wishes he would have known going through the process as a parent
On this week’s episode, Erik and Travis talk with Adley Rutschman, catcher for the Baltimore Orioles. Adley was selected by the Orioles as the first overall selection in the 2019 Major League Baseball draft with the highest signing bonus in baseball history. He joins us this week to discuss his time playing in college for Oregon State University, going into the MLB draft last year and making the transition from amateur to pro. Adley covers a wealth of topics in this episode including:
- How to handle public pressures of being a highly ranked athlete
- The important things to look at when choosing an agent
- Utilizing time in college to hone in and build up skills
- The mental development and other key contrasts that accompanies going from college to pro
- Walking through what draft meetings with scouts were like including some of the most unique questions he got
- Sharing how he maintained good family dynamics despite the high stress level the comes with the draft
- What it was like on draft day
- Mentally preparing for the back and forth of salary negotiations
- Advice for players and their families as they’re about to enter the draft
This week, Travis and Erik interview Bobby Stroupe, founder and president of Athlete Performance Enhancement Center (APEC). Bobby and his team started APEC in 2005 and it has grown over the years to become one of the most trusted sources for athletic performance improvement including accolades from and work with Nike. Bobby and APEC have trained some of the best athletes in the world including NFL MVP and Super Bowl champion Patrick Mahomes.
There is a lot of uncertainty for athletes in all sports currently as seasons are indefinitely suspended and training facilities can be inaccessible for many. Are there ways you should be utilizing this downtime to stay on top of your game – despite some potential difficulty in accessing facilities? In this episode, Bobby, Erik and Travis talk through this question and address other topics like:
- The importance of structure and consistency
- Ways to focus on joint mobility and structural flexibility
- Being creative even with limited access to workout facilities
- The difference between success and results
- How to find a good performance coach including questions to ask and specializations to look for
- Resources to learn more on this topic
Are you familiar with the changes to how an MLB Draft signing bonus is paid out? Historically, teams have split the gross amount into two equal payments over two years, but due to COVID-19 have recently made some important changes that you need to know.
As a player, your ultimate goal is not the gross (before tax) MLB Draft signing bonus amount; rather, it is the net (after-tax) amount. In the past, how you structured your payments - whether they were uneven payments or not - was a huge opportunity for tax planning, but that option has now been eliminated. However, one thing that hasn't changed is how the signing bonus is taxed.
In this episode, Travis and Erik discuss what a signing bonus is, and how the recent changes might impact families and cover commonly asked questions like:
- What changes have been made to the signing bonus structure in 2021?
- How are signing bonuses are paid out?
- Are these true signing bonuses? Or are they wages?
- How does my residency impact the way my signing bonus is taxed?
- What is an abandonment clause and how might it impact my signing bonus?
- What happens when an abandonment clause is removed?
- Now that signing bonuses are paid out over 3 years instead of 2, what are the important implications and opportunities that families should consider?
- When should I start doing the tax planning?
- When is it important in the draft process to bring on certified financial experts?
- Why are players hearing the argument that they shouldn't bring on financial experts if they're only going to earn $100,000 in their first year - regardless of the size of their signing bonus?
You probably didn’t think we would be talking about disability insurance, right? So, do you need coverage? The answer varies for every individual. We are joined this week by former NBA player and current owner of Leverage, a disability and life insurance firm. In this episode, we discuss questions like:
- As a high school draft prospect, is disability insurance really necessary?
- Is disability insurance even worth it for me?
- If I am currently enrolled at a university, what should I do?
- Will my university pay for my disability insurance?
- What are my chances of getting injured and filing a claim?
- How much disability insurance should I take out?
- Does it just cover me on the field?
Who should I trust with my risk management? In episode six, we are going to breakdown disability insurance. We want you to be well informed of all your options. You have worked hard to get here-we want you to protect what you have earned and what you are going to earn in the future.
On this week’s episode of the MLB Draft Podcast by AWM Capital, we’re joined by Tyler Beede – pitcher for the San Francisco Giants. Tyler had the unique opportunity of being a 1st round draft pick two separate times. He turned down the first opportunity to pursue college at Vanderbilt and further hone his skills. He discusses playing at the collegiate level, on TEAM USA, and continuing on again to the MLB draft as a first round pick.
Throughout the episode, Tyler walks us through his career from high school to the major leagues and covers topics like:
- What it was like on draft night
- Advice from a major league perspective on what he relies on his agent for, how to be a good client to your agent, and some pitfalls to be aware of
- How to build a team who can help handle the business of professional baseball so you can focus on improving your game
- Navigating the draft process with his parents
- Discussing what he would have done differently during his college baseball career and the importance of enjoying where you’re at
- Reflecting on what it takes to be successful in the major leagues.
Last time, we discussed how to find a sports agent who has the expertise and experience for your situation that can advocate for you in contract negotiations and representation.
This week, we continue the conversation to help you finish building out a trusted team that can help you navigate the biggest financial decision of your life by finding the right financial team for you.
As an athlete, you would take the time to research and find the best medical professional to help you deal with an injury. You should do the same when it comes to managing your wealth. To do that well, it’s important to understand some basic concepts of the financial advisor world to be able to take responsibility in this decision and own your wealth.
During this episode, we discuss topics and questions such as:
- What are the unique issues a draft family will face from a financial perspective?
- When should you begin searching for your financial team?
- What are the biggest financial mistakes draft families make?
- What is the difference between a financial advisor and a certified financial planner? What is the difference between a broker/dealer and a registered investment advisor?
- How can you ensure that the team you’re hiring has the experience and expertise to handle your wealth?
- What beyond investing should your financial team help to manage?
- What are the key questions you should ask while searching for a team to handle your wealth?
Listen to episode 4 for answers to these questions and more.
How confident are you that you chose the right agent?
In a $10 billion industry, it brings a host of characters that want a piece of your business. It can be difficult to know who are the people that have the expertise and the experience to help you.
Too often, the only advice you receive is to do your due diligence. But that assumes you know what questions to ask, which is largely untrue. So what ends up happening is families are trying to do the best they can, but end up asking the wrong questions, and when you ask the wrong questions, you're going to get an answer, it's just the wrong answer.
In this podcast, we provide a framework and the right questions to ask when choosing your sports agent.
- What are the needs a player has?
- Who is qualified to meet those needs?
- What are the three types of employees of an agency that the MLBPA regulates?
- Is an agent worth paying 4-5% commission on your signing bonus?
- Can your agent get your drafted higher?
Download this show's free resource ("Questions to ask a potential sports agent") HERE
Should you sign a professional contract or head to campus?
This is the decision every high school or college player with eligibility will make this upcoming June. This looming decision will have a dramatic impact on the trajectory of your baseball career and life. How prepared and confident are you that you would make the right decision?
Many factors should be considered when deciding to sign a professional contract; however, for the majority of players, it’s a question of money.
The question the industry is asking is, “What’s Your Number?”
The reality is: everyone has a different “number,” and there is a lot of work that should go into it.
This will be the most significant financial decision of your life. How much you sign for, the taxes you pay, and what you do with that money will have enormous consequences.
So how much is enough?
In episode two, we breakdown the process of what it takes to determine your number. We believe if you follow the process we layout, you can have a lot of confidence going into draft day. Regardless of where you end up being selected, you will have a definitive path to make the decision that is right for you.
In this episode, we breakdown the incredible opportunity an amateur player has to become a professional baseball player. We detail what's the probability, the career trajectory, and pathway to navigate the MLB Draft process successfully.
It's hard to encapsulate the excitement surrounding the upcoming MLB Draft. Years of hard work, sacrifice, and dedication all point to this one day. Becoming a pro.
It's a rare opportunity to realize a childhood dream, but equally as important, it's an opportunity to change your financial future. With one announcement from the podium, players will move from asking their parents for lunch money to becoming one of America’s wealthiest.
In last year's draft:
- $316 million paid to draftees
- $128 million of that was on the first 34 picks
- 71 players signed for $1 million or more
- Only two players drafted in the top 10 rounds did not sign
- 73% of the first-round draft picks play in the major leagues according to Baseball America
Baseball is a game. Professional baseball is a business.
You are now responsible for thinking about your career from a business standpoint and you're going to be forced to make decisions, whether you make them well or not, they will have a significant impact on your current and your future life.
Episode one is the starting point for making the right decision.
Jon Condo, my former teammate and 15-year NFL veteran, now real estate agent joins to talk real estate. With real estate prices notching up to record price increases, and an unhealthy supply of homes for sale, Jon answers common questions for NFL Players.
As NFL players focused on growing our net worth and creating generational wealth, real estate is a solid part of that equation. We also get a chance to share our own real estate stories and where NFL players can get tripped up.
We also talk about the consistency necessary to last 15 years in the NFL in an unforgivable position of long snapper. You cannot redeem yourself from mistakes, and must be perfect for 10-15 snaps a game. Jon shares what shaped his commitment to professionalism and performance.
If any NFL players have real estate questions, reach out to Jon Condo directly at: Jon@TheKarasGroup.com or me at: zmiller@awmcap.com.
Episode Highlights
- How Jon took a disciplined approach and his path to becoming a long snapper, playing for 15 seasons.
- Condo’s transition to his career after football and what helped him along the way.
- We discuss doing what you’re good at and can consistently win at is a recipe for success in a career after the NFL. Taking care of your business and growing your Net Worth allows for flexibility and freedom to pursue what you are passionate about post-NFL.
- We talk about mailbox money and that doesn’t just mean real estate. Jon shares some of his experiences investing in real estate early in his NFL career and what he has taken from it.
- As a young NFL Player should you buy or rent? Is rent wasted money?
- Credit score and what impact does it have on getting a mortgage to buy a home.
- When renting out your home, know your downside, risks, and opportunity cost.
- Real estate tax Planning including 1031 exchanges, Section 121 exclusions. Click on the links for more details but the tl;dr is you can avoid taxes or kick the can down the road with some of these strategies. Seek out qualified professionals like us at AWM Capital for specific advice here.
- Always have an exit strategy to realize your profits. This might seem obvious but many people don’t have a plan in real estate investing.
- What maximizes residential real estate value? What improvements actually can add to the value of the home.
- Can you time the market in real estate?
- Where does real estate belong in your Net Worth stack?
- My free link for checking Mortgage Rates: http://www.mortgagenewsdaily.com/mortgage_rates/
Grant Haley of the New Orleans Saints joins me this week to talk Venture Capital investing from the viewpoint of an active player. Grant was in the latest class of the Next Play Venture Fellowship with me and is also finishing his MBA while competing his ass off in the New Orleans Saints offseason program.
He is doing what so many NFL players miss - including myself when I was playing - in taking advantage of the absurd amount of resources available to active players. Many of these resources amount to free money and easy networking. We cover what his biggest takeaways from the NPC Fellowship were, and what he has learned grinding it out in the NFL.
NFL Players are entering a new phase of #athleteand, of which Grant is a prime example.
EPISODE HIGHLIGHTS
- Venture investing from the investing side and also from the entrepreneurs side. There is a process to greatness in this space just as there is in football. The Tom Brady of venture capitalists has the process to be able to repeat the winning over and over.
- Why I constantly say the term “own your wealth” and why you are doing a disservice to yourself to not be informed.
- If you think a good financial advisor is a stock picker then you're misinformed, and you should demand better. Certified Financial Planners with real expertise for your situation is what actually is valuable to you.
- Before making any investment you must answer the why of making that investment. Is there a priority you are targeting? Investing is more than just buying stocks. To actually create value, all factors of your financial life should be taken into consideration.
- Your team matters in football, and it’s no different for your financial team. Specialization at corner, tight end, or running back applies in exactly the same way to investing, tax, and planning experts.
Athletes are taken advantage of most often when it comes to making private investments. So many of my teammates ended up with bad advice, poor returns, or even losing all of their money in bad private deals.
It pays to know what you’re doing if you’re interested in getting into the private side of finance.
That’s why this week, I’m joined by Akbar Gbajabiamila to discuss Venture Capital investing.
Akbar is an NFL veteran of the Raiders, Dolphins and Chargers, current host of American Ninja Warrior and NFL Fantasy Live, and he wrote the book Everyone Can Be a Ninja. Akbar is a true example of #morethananathlete, and has achieved continued exceptional success after his already successful football career.
Akbar and I met through the Next Play Capital Venture Fellowship, a two week event that takes a cohort of current and former professional athletes on a crash course of how the best venture capital investors approach investing, and gives perspective on what it takes to build a successful company.
Episode Highlights
- Our takeaways from completing the Next Play Capital Venture Fellowship
- Access is what matters in venture capital returns, top firms continue to win year in and year out
- Akbar’s venture startup mask idea created during COVID so fans could attend sporting events
- As an entrepreneur it isn’t just about money but the strategic partnership and team you pick to help guide you as a growing company.
- Conflicts of Interest in financial advice and why independent advisors align incentives of the advisor and player
- How to invest like a professional outside of Venture Capital and how to pick a financial team that adds real value
- Akbar talks about his recent crypto trading and the FOMO, fear of missing out, so many guys get caught up in
- Akbar’s advice for active players and using their status to create a strong network: “your network is your net worth” as he says
In this episode, we’re joined by Brandon Copeland (@bcope51), linebacker for the @atlantafalcons and about to enter his 8th @NFL season, Ivy League professor of Life 101 at @uofpenn, @Forbes 30 Under 30, and established leader in the #morethananathlete movement. Brandon and I discuss what we have learned during our NFL careers about money, investing, and football - including the mistakes we’ve made along the way.
Brandon and I both have a similar focus of helping to build financial freedom for all NFL players, and as we discuss throughout the episode, the pillars of personal wealth (net worth, human capital, investing, annual spending, after-tax returns) do not have to be over-complicated by Wall Street. Similar to football, keeping it simple is the best strategy.
NFL Players can’t afford to learn at the rate of their own experience; we must learn faster and channel our competitive drive to eliminate the unnecessary money mistakes every NFL Player will make.
Topics:
- The story of how Life 101 started and what Brandon teaches in the offseason at his alma mater University of Pennsylvania.https://www.life101.io/
- Discussing money and how the educational system really drops the ball, not just for athletes but for everyone.
- Not being afraid to learn and ask questions especially when it comes to money.
- Getting the right experts on your team matters. You cannot be an expert at everything.
- Money is just a tool to be used for financial freedom, whether that is to provide for the people you care about, or to make the impact you desire during your life.
- Treating yourself like a business, and not letting your entourage ruin that business
- Brandon’s biggest piece of advice for the newly drafted Rookies (Also check out Kiplinger.com/cope)
- Vet and demand the best from your advisors, financial advisers & agents. Don’t just rely.
- Being competitive about spending money is a game you won’t win.
- How to operate as an NFL Player to retain your wealth, mentally create the right mindset to not fall into this trap
- Brandon tells his experience day trading options and his maturity as an investor during his investing career and generational investing.
- Brandon brings up the concept of delayed gratification and being patient when it comes to investing.
- How Brandon approaches his real estate investments and the constant learning required to become an expert in the space.
- Tax strategy is often ignored or poorly implemented for NFL Players resulting in less money in the pockets of players.
- Biggest mistakes as a player when it comes to wealth: including not knowing your net worth, savings rate, and annual spending after tax returns matter and human capital must be common.
- Brandon’s grandfather, NFL Player & Super Bowl Champion advice he gave to Brandon when he was younger
What should your financial game plan be after you retire from the NFL?
The truth is that tax planning isn’t over when you retire - the game is actually just beginning. There are still plenty of opportunities as a retired player for you to keep more of the money you earned if you take the right steps. A solid tax strategy saves money. Just filing your taxes does not.
In this week’s episode, I scratch the surface on the topics below, but if you want more details then download my Post Career Tax Game Plan through the form below.
Key Highlights
- (00:06) After-tax return is what matters
- (3:58) Roth Conversions Strategy
- (3:13) Backdoor Roth IRA Strategy
- (5:15) NFL Pension + Annuity Plan + CAP Plan + 401(k) Plan Optimization
- (7:38) Donor-Advised Funds saves on taxes and increase impact of giving
- (8:22) Leveraging Post-NFL income with all the above
Listen as I explore the 3 tax planning opportunities I personally missed and continue to see NFL and MLB athletes missing every year. This is money that should be in your pocket that you are missing out on.
- The Jock Tax - Every time you visit another state to play a game, you pay state and local taxes according to however your team calculates payroll. The problem is they sometimes ignore training camp, minicamp, injured reserve and possibly cost you a lot in taxes. Recalculating your “duty days” can save a ton of money throughout your career.
- Individual 401k - Deferring your endorsement income (think trading card deals, appearances, endorsements) can save up to $22,800 every year for NFL Players. This adds up over a career.
- Roth IRAs - I go into detail how much my advisors cost me by missing non-deductible Roth Conversion strategies. Missing this simple strategy is evidence of just plain bad tax planning.
Go check your financial accounts and if you don’t have a Roth IRA account and Individual 401k account, you are getting poor tax planning from your advisors. Time to move on and get a team that can actually allow you to keep more money in your pocket.
Sign up to receive emails from me that provide relevant content for NFL Players. It will help you stay informed, become a better investor, and own your wealth for the long term.
If you do not have the time or energy to learn about how true professionals go after the returns they deserve, then find an advisory team that will unbiasedly vet the deals for you or just go buy a publicly traded Real Estate Investment Trust.
If you want to explore the best ways to allocate money to real estate, listen to this podcast or Aaron Golderberg’s recent PGA Players Podcast #14 and always ask the right questions before investing. The most important question being the track record of the private real estate shop and if they have “skin in the game.” You also want to know their specialty niche in the market and when the cash flow will make it to you.
I also share some of the mistakes I made and saw my teammates make when it came to real estate investing and NFL Players.
Episode Highlights
- (00:42) The biggest driver of your net wealth is Human Capital
- (2:18) Deep dive on private real estate: PGA Players Podcast #14
- (3:18) Taking stock of your financial structure – does real estate fit?
- (4:58) Homes are consumption assets
- (6:41) The BRRR (Buy, Rehab, Rent, Refinance, Repeat) Method
- (7:38) Vetting private investment deals
- (8:49) Public REITs (Real Estate Investment Trust)
- (10:04) When are you going to get paid back?
- (10:52) The advantage of non-recourse debt
Not for NFL players.
The data is pretty clear on who wins in the hedge fund world and it’s not the investor. Just like in venture capital, access matters and the line to get that access is out the door. If you want to hedge against uncertainty, you can tailor the perfect hedge on negative economic or personal shocks by creating your own protective reserve customized to your priorities. This keeps costs low, taxes low, and provides a personalized hedge to ride out uncertainty.
Don’t let Wall Street fool you with shiny objects. Let the compelling evidence drive your investment decisions.
Episode Highlights
- (1:02) NFL Free Agency
- (2:55) What are hedge funds?
- (3:33)What returns do they have to produce to justify allocating to them?
- (5:14) Creating your own personal hedge fund
- (7:43) Analyzing the Business Risk
- (8:27) Manager skill
- (9:14) Does it really make sense to only throw Hail Marys?
- (10:50) Summing it up
More resources at awmcap.com/nfl16
In this week’s episode I break down venture capital investing and cover what matters most for professional athletes to consider about the space.
If your advisor has you invested in private equity and is not getting you access to the best funds and managers in venture capital, then should you even allocate any of your hard-earned wealth to the space? Venture Capital can produce outsized returns, but at what cost?
Don’t let Wall Street take advantage of you, but instead, be a pro when it comes to investing.
Disclaimers:
*Not all AWM Clients are invested through the Next Play Capital Opportunity Fund.
**The Next Play Capital Opportunity Fund is a private fund that is restricted to specific AWM Clients who are accredited investors in the fund.
Why do Professional Athletes continue making headlines for losing money on investments? Do you know what to look out for so you are not taken advantage of when it comes to private investments?
In the first podcast of the series of private investments, I give a quick overview that we will discuss over the coming weeks including venture capital, hedge funds, and private real estate. As every investor learns, there is no free lunch in the market so I explain some of the risks and the possibility of higher returns and what must be sacrificed to attain those returns. There is always a trade-off for every investment decision whether you know it or not. Those that build generational wealth put their money where there are compensated risks.
Episode Highlights
- (00:06) Private investment series overview
- (1:03) The advantages of private investments
- (1:23) Russell Wilson news
- (2:12) Public vs private markets
- (3:34) Confidence in returns
- (4:30) Dealing with risks
- (5:30) Returns vs expenses
- (6:34) Investments with friends or family?
- (8:26) The importance of vetting deals
- (9:22) Finding the right financial team to help
This week I discuss the upcoming free agency window in the NFL. It is only three weeks until it officially begins, but big names are already getting a chance to choose where they will play next season. How can you maximize your next contract and get the deal you deserve?
I talk about the salary cap going down and what actually drives the large numbers signed by the marquee free agents. I also talk about my own free agency experience, the first time being a top free agent the second time with multiple surgeries and a failed physical.
If you have any specific questions, please let me know at zmiller@awmcap.com
Episode Highlights
- (00:06) Getting released and becoming a free agent
- (1:38) Zach’s pro tip
- (2:18) When might the cap go back up?
- (3:58) Why getting into the free agency should be every NFL players goal
- (4:43) Free agency terms
- (6:09) Long-term contracts
- (9:09) Zach’s story of becoming an unrestricted free agent
- (11:51) “You're sacrificing your body for money in the NFL. That's just true. You're going to have the effects of football for the rest of your life. So you need to go ahead and make sure you take care of your financial life first and sign the deal you deserve.” – Zach Miller
More resources at nflplayerspodcast.com
As an NFL Player you are in the top tax bracket. Your biggest expense is income tax. The more income you can delay and defer to the future where your tax rates will be lower means more money in your future pocket.
In this episode, I explain some of the basic tax forms you will receive as an NFL player and discuss some of the advanced strategies to build generational wealth. These include
- Individual 401(k) for endorsement income
- Backdoor Roth IRA
- Donor Advised Fund
- Asset Location
- Safe Harbor Strategy
If you don’t feel like you are getting the best advice, give us a chance to discuss your personal tax strategy. I wish I would have searched out more second opinions when I was a player.
More resources at nflplayerspodcast.com/
NFL Teams have already started implementing their strategies for the 2021 NFL Season. Have you reviewed your personal wealth strategy for the year? If you have not done so yet, I implore you to seek out the best professionals to grow and protect your wealth before it’s too late.
Too many NFL players receive just average financial advice. I cover just a few areas of what should be graded when it comes to wealth planning and strategy. Don’t settle for just investment advice. I know from personal experience it just is not good enough for NFL players. Financial advice for athletes must include tax planning, private equity, and your NFL benefits.
Do not waste the opportunity of building generational wealth like the wealthy know how to do. They don’t accept someone not acting in their best interest and stay investing for the long term.
More info at NFLPlayersPodcast.com
Super Bowl
Winning a Super Bowl is one of the greatest moments of my life. Personal success and achievements are good to have but they do not stack up to what you can be accomplished playing as a team that sacrifices for each other to accomplish something that could never be done alone. The long journey and ability to overcome adversity is what makes a Super Bowl Championship Ring the embodiment of greatness.
This Super Bowl will be about more than Tom Brady versus Patrick Mahomes as sports media would have you believe. It is also like no other game unless you’re Tom Brady who is playing in his 10th Super Bowl. Use all the same preparation and fundamentals that got you to the Super Bowl to give you the edge you need to win. Focus on what you can control and don’t make s*** up. Make the plays you are capable of making.
Gamestop
The meme stocks have been getting outsized media exposure this week. Whether is Robinhood, GameStop, AMC, Bitcoin, or Dogecoin when people believe easy profits are to be made, they begin piling in. Brandon, Erik, and Justin have an excellent AWM Insights podcast they released on Tuesday that discusses short selling, hedge funds, meme stocks, and good versus evil. Everyone should recognize that professional traders, whether that’s high frequency traders, momentum traders, or quants have tools and resources the Robinhood amateur does not have access to. The equivalence is if a guy off the street tried to play in the NFL, they would get hurt. This is the same thing. The people buying these meme stocks like GameStop will be the ones that get hurt. I cannot emphasize enough how it pays to be humble and recognize being a long-term investor gives you the freedom to ignore short-term noise such as this and allocate to the highest expected returning investments.
Protect Your Net Worth
Personal Liability Umbrella Insurance is necessary for any athlete. You have worked so hard to be the best player, you owe it to yourself and your family to protect that. Many advisors do not have experience with liability insurance written for athletes so you may not be protected even if you have some in place. With the ability for anyone to Google you and your net worth, it is smart to have a Certified Financial Planner review your insurance just in case there are any gaps. Own your wealth and hold your advisors accountable to the same standard you hold yourself as a player.
Just as blocking and tackling are the fundamentals of football, saving and investing are fundamentals of wealth. In this podcast I challenge you to evaluate how much of your income you save and if you don’t know, it is a good time to find out.
Wealth is the freedom to do what you want, when you want, with who you want. Every NFL Player has a chance to achieve this once the game is done with you. Just as you would track calories to lose weight or track your gains in the weight room to judge progress, taking ownership of your spending gives you control over your financial security.
I also discuss debt and the few cases it makes sense for NFL players. High interest debt, like credit card debt, only shows lack of understanding of how interest rates work. You want to be on the other side of that equation, compounding your investments at those rates, not paying banks at those rates.
I also cover quickly some common traps of NFL players and introduce what every investor should know; opportunity cost. I left out way too many but investing in a friends business, owning multiple homes, collecting depreciating assets, or struggling with gambling addictions are some of the many ways to destroy wealth.
Remember that making it to the NFL is an incredible opportunity and it is easy to get distracted. Finding an independent, fiduciary advisor with relevant knowledge to your situation can help sustain and grow your wealth.
Episode Highlights
- (00:08) Great AFC/NFC championship games this past week
- (2:05) You can’t play forever
- (2:44) Savings rate
- (4:42) Not all debt is bad
- (6:08) Common financial traps NFL players fall into
- (8:07) Depreciating assets
- (10:26) Pete Carol and the importance of fundamentals
It sucks to have to watch guys still playing for the elusive Super Bowl Championship but that's out of your control now. As the NFL offseason is underway for many NFL teams here are some smart game planning you can do off the field. In this episode, I cover some topics that can help you become a true professional not just in the NFL but in owning your wealth.
Your biggest driver of your wealth is your human capital. This is your future earnings and they are highly uncertain. Spending the necessary money to increase your future value should be non-negotiable for you. This involves training, treatment, mental performance, and any improvement that can increase your performance.
Now is the time to own your wealth in your financial life. There is time to dedicate to improving your situation and evaluating the financial team you have in place. As an NFLPA Representative, there are many great benefits that you may not be taking advantage of. At least set up and login to your account even just to know it's there (NFLplayerbenefits.com).
Your money is just a tool and I simplify it into four categories: lifestyle, giving, saving, and taxes. No need to overcomplicate it, but crucial for all NFL athletes to understand. We discuss the opportunity of actually doing tax planning the right way and how to protect wealth with proper insurance and estate planning.
Lastly, tax planning should be given more attention by the people advising NFL players. A CPA that files taxes and is only evaluated in April is not providing the value that you need. I explain what I failed to realize as an NFL player and what actually matters when growing net worth. Tax planning is incredibly valuable and can add huge savings that will be missed if you are not getting it from the best that understands your situation.
Episode Highlights
- How to approach the offseason (00:06)
- A game plan for taking care of your body (1:01)
- Sharpening your mental game (3:09)
- Owning your wealth (4:02)
- Tax filing vs tax planning – don’t settle for less (5:40)
- Finding a financial team that can handle your entire wealth management and more (6:30)
- How to not get taken advantage of (8:06)
- Should you consider a disability policy? (8:55)
- The importance of estate planning (9:36)
- Is your team doing what’s best for you? (10:22)
- What is human capital? (10:59)
In this week’s episode, Zach focuses specifically on underclassmen in college.
You’ve done well in your college career. You’ve put the time in on improving your performance. You’ve made big plays on the field. And now you’re faced with a choice: do you stay at your college or move on to the NFL?
The decision to stay for your senior year in college or go to the NFL is a massive decision for a 20 or 21-year-old to make. It’s one Zach knows well – he left his playing career at ASU after his junior year and went on to get drafted by the Oakland Raiders as the 38th pick overall.
Zach breaks down the decision-making process players should go through to weigh the pros and cons of staying another year or two at the collegiate level or if they should attempt to move on to the NFL.
Episode Highlights
- Making the toughest decision of your college career (00:21)
- Zach’s decision-making process when he left ASU early for the NFL (00:41)
- Not just a financial decision (2:41)
- Using data to help make the decision (3:01)
- Weighing the risks of injury (5:36)
- Bringing in the right team to help make you to decide (7:44)
As an NFL player, you’re in the highest tax rate. That means with your endorsement deals and appearances that 40-50% of that income is going to go to the IRS. Are you taking advantage of all the available opportunities to hold on to the income you’re acquiring?
This week, Zach is joined by Aaron Goldberg, CFP®, fellow AWM Capital colleague and former PGA, Korn Ferry, and Canada Tour golfer, to discuss some of the biggest tax savings that they’ve seen professional athletes miss out on.
An important distinction on why the SEP IRA is inferior is the ability to do non-deductible IRA contributions and then later convert them to a Roth. You cannot directly contribute to a Roth because of income phaseouts but Roth accounts can grow tax-free and then be withdrawn with no taxes later. The Individual 401k can exist and does not affect the backdoor Roth strategy as it’s commonly known. For athletes, the SEP IRA is an indication the advisor or CPA is not experienced with the unique circumstances and income of athletes. If you would like more detail check out our blog.
Episode Highlights
- The Individual 401(k) and endorsement income (00:24)
- Deferring your 1099 income (1:17)
- The importance of a CFP® as a wealth advisor (2:24)
- Is a SEP IRA enough? (3:36)
- Zach’s experiences of missing out on tax savings (5:18)
The differences between someone who plays in a football league on the weekends and an NFL player are obvious, but did you know there are similar gaps between people who call themselves financial advisors? When trusting someone with your net worth – do you know the designations to look out for? What are the differences in qualifications between someone who says they’re a financial advisor and someone who is a CFP®, CPWA®, CPA or CFA? Approximately 300,000 people in the country could call themselves a financial advisor – even if they just sell insurance. However, there are only roughly 82,000 people with the designation of CFP®, and 2,500 with a designation of CPWA®. Knowing which designation you need for your unique situation could end up equaling millions of dollars for you.
In this week’s episode of the NFL Players’ Podcast, Zach Miller and Erik Averill break down the different designations you’re going to come across and you should be looking out for, and they’ll cover one of the biggest assets that you have as an NFL player that we’ve seen as also one of the most neglected assets out there.
Episode Highlights
- Who is actually a professional? (1:16)
- The designations you should look for: CFP®, CPA, CFA (2:15)
- Trusting in the right expertise (4:24)
- “So what I would say is, regardless if you're an athlete or you are parent listening, or an agent, you should first and foremost, work with an independent company that is doing what's in your best interest. They're not actually trying to sell their products and their services at you of trying to extract value.” – Erik Averill
- What Wall Street firms can’t help you with (5:26)
- Everything you should know about the NFL Benefits Package (7:05)
- “These are extra benefits that the average advisor just has no chance understanding and they don't want to, it's not worth it for them, but it matters to me and it matters to helping guys get the benefits that they earned while they were playing.” – Zach Miller
You’ve likely at least had conversations with them – Goldman Sachs, UBS, Merrill Lynch, Wells Fargo, Morgan Stanley – but are these big wirehouses the best place for you to build your net worth?
As a professional athlete, you’re in a unique situation, and the reality is that these mass affluent broker-dealers were not built with you in mind. Your unique situation deserves a unique solution.
In this episode, Zach Miller is again joined by Erik Averill where they discuss specifically why these firms are not equipped to handle the complexities that an NFL player’s financial situation demands and what you should be looking out for instead in a firm that can have your best interests in mind.
Episode Highlights
- Why are wirehouses not a good solution for NFL players? (00:59)
- “That's the case with those wirehouses, the UBSs, Morgan's, Merrill's Goldman Sachs. They're not a fit for athletes and they never will be. They try to do this, they will start an athlete division, athlete and entertainment division, and they'll put a former player as the head of it. It's truly a disservice to the players. It's a disservice to NFL players in particular because, at their core, they're just asset managers that do portfolio management and they might tease you and say they have access to some proprietary products, which are just repackaged financial products by that company.” -Zach Miller
- Why big brokerage aren’t necessarily equipped to provide you the best solution (3:14)
- Zach’s issues with the NFL PA financial advisor program (5:57)
- The solution for the masses vs the solution for the pros (7:57)
- “Think about who sponsors bowl games, who sponsors the plastering inside the stadiums, you'll see a Merrill banner, you'll see a Morgan Stanley banner, you'll see a Northwestern mutual banner. I always ask [players], ‘You realize that they're actually advertising to all the fans sitting in the stadium.’” – Erik Averill
- Why you should demand the best (10:09)
- The signs to look out for when trying to spot a broker-dealer (10:55)
As an NFL player, you're in the top earning bracket in the world. How should you be handling your net worth? How did you determine who currently manages your net worth? The problem with many NFL players is that they end up with a “nice guy” broker who manages their assets, but not much else.
As an NFL player, are you only getting “JV Team” advice?
In our last episode, we began to discuss how the wealthiest people – Zuckerberg, Oprah, the Vanderbilts handle their financial situation differently than the rest of the world. Ultimately, what we said was that NFL players need to think like Jerry Jones, John Mara, Dan Rooney and understand they should demand the same level of service as these NFL billionaire owners.
We pick up that conversation this week with Zach and Erik discussing the specific strategies when it comes to optimizing your net worth as an athlete and why you should view your net worth just like the wealthiest in the world do and demand the same level of expertise with your finances that you would from your trainers, doctors, and nutritionists.
Episode Highlights
- The difference between how pros vs amateurs approach their money (0:07)
- Why athletes deserve the family office model instead of an asset management firm (1:06)
- “So first of all if you heard that they had their money at UBS Morgan or Merrill, you'd laugh, just knowing everything I know about the industry now. And that's not what the wealthy do. They have a family office and that's why I wanted to come work at AWM is because I know that the family office model is what the players deserve and it will help them treat their wealth the right way.” Zach Miller
- “Athletes have worked their whole life to become the best at their craft. They should demand the best from their advisors.” Zach Miller
- The family office and multi-family office models explained (2:15)
- One of the biggest financial mistakes a pro athlete can make (4:52)
- “You don't need a friend. What you need is someone that really gives you the tough news sometimes or helps correct you when you need a sounding board of a financial decision.” Zach Miller
- Accessing the appropriate expertise to address your unique financial situation (7:10)
We’ve all seen the headlines of former professional athletes - who made millions in their career – having to file bankruptcy later in life. It’s a sad statistic and one that should be totally avoidable when you have a competent financial team that has your best interests in mind.
The problem can come when you hear many different financial advisors who tout their ability to get you the best returns on your investments. However, investment returns aren't enough, and this can often be a sign that your advisor is focused on the wrong objectives. They are ignoring so many other aspects of your finances.
In last week’s episode, we discussed the reality that, as an athlete, you’ve committed your life to being the absolute best at what you do, and that you should also demand the best from your professional team off the field. This week, we continue by talking about identifying and leveraging the greatest drivers of your net worth – your human capital, what to look out for when building your ideal financial team, and what it actually means to own your wealth.
Key Topics Discussed
- What should players be trying to accomplish when it comes to their financial situation? (00:31)
- Defining human capital (1:14)
- What separates the rich versus the wealthy (1:45)
- “Wealthy individuals are ones that understand income is not the most important. It’s actually net worth.” Erik Averill
- Why just focusing on investment returns isn’t enough (2:42)
- The importance of your savings rate and realizing your human capital (3:40)
- Building your customized financial plan (6:16)
- Combatting the sad stats of athletes filing bankruptcy (7:13)
- Building your financial team (9:27)
- “You want to hire a head coach that doesn't have a conflict of interest. If you were to hire an advisor that works at one of the big brokerage houses, they're not trying to help the team win all the time. Sometimes they're doing things just for themselves. That's the difference between an independent advisor and the big brokerage houses. It's as simple as that.” Zach Miller
- Optimizing for after-tax returns (11:33)
- “A lot of times, the advisors are good people, but if you incentivize them to sell products or they're only limited to selling the products of their firm, or pushed to sell those products of their firm, they're not giving you the best advice. They're not allowing competition in the marketplace to get you the best deal, or the best type of savings you can find.” Zach Miller
- The value of a strong tax team (14:05)
As an NFL player, are you getting the financial advice and returns you deserve?
In the first episode of the NFL Players’ Podcast, former Seattle Seahawk and Super Bowl champ Zach Miller is joined by AWM Capital co-founder and former professional baseball player Erik Averill to discuss the most important financial questions that all NFL players should be asking, how to start building your financial team, the goals of this podcast, and the things Zach wished he would’ve known as a rookie now that he is retired.
Join us each week as Zach breaks down the most important actions you should be taking to help create long-lasting wealth in your career as an NFL player that will allow you to leave a legacy long after you retire.
- (1:03) Zach’s biggest goals for the NFL Players Podcast – helping players grow and keep their wealth
- (1:31) Zach Miller: “I hope to be the financial advisor to NFL players – that knows the most, that does the best for their clients, and above all else treats them like I wanted to be treated and would’ve liked to have had as an advisor when I was a player”
- (1:55) Erik Averill: “At AWM, we understand what professional athletes actually need”
- (2:20) When do you start to understand that football was a business?
- (3:55) How should players think about themselves as a professional?
- (4:45) The “lifecycle” of an NFL player
- (5:00) Zach Miller: “You’ve put so much effort and time to being an NFL player - to achieving that goal and achieving that kind of excellence on the field – that you should demand that off the field.”
- (5:43) The problem with most financial firms
- (6:04) The robust team every NFL player should build around them to help them achieve success on and off the field
- (7:22) As a second round NFL pick, what was it like to suddenly come into that kind of money as a young player? What do you wish you would’ve done different?
- (9:04) What advice would the Zach of today tell Zach as a rookie?
- (10:01) The main goal of this podcast
- (10:57) Some of the most important questions NFL players should be asking
- (12:32) What’s behind Zach’s passion for advocating for NFL players
- (13:33) Why Zach joined the AWM Capital team
- (15:49) What was it like to change agents as a player?
- (18:57) Zach Miller on business and finance for young players: “For me I’m always going to side with the players and see it from their point of view. I want to be able to communicate that I was in your same situation: you don’t have to be perfect, you can just be good and your situation will be excellent by the time you’re done playing.”
- (20:07) Being the CEO of your professional sports career
- (21:22) Why just liking your financial team isn’t enough (Resource: The Speed of Trust by Stephen Covey)
- (22:32) Holding people accountable to keeping your best interest at the top of the priority list