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According to Business Insider, star NFL tight end Rob Gronkowski retired with his entire
NFL career earnings ($54 million). Gronkowski told Business Insider that he only lived off
endorsement earnings. “He followed a simple rule: keep it simple by saving surplus money”.
Gronkowski saved every penny he made from the NFL and only spent his surplus income from
commercials, endorsements, brand deals, etc. This allowed him to retire comfortably and not
spend his career earnings unwisely (Hoffower, Business Insider).
In an interview with Business Insider, NBA Hall of Famer and legend Shaquille O’Neal
details the time when he spent a million dollars in one day. He bought 3 cars, diamond rings,
TVs, and more. The next day, his bank manager called him and said that professional athletes get
a lot of money but once their career is over, they are left with nothing because they blow it all
and I don’t want you to be one of those guys. That day, Shaq hired a money manager and has
since become smarter with his money (Flanagan, Business Insider). In an interview with CNBC,
one of Shaq’s financial tips is to save 75% of what you earn and spend 25% as you please.
Throughout the whole interview, Shaq harps on saving. “Save, save, save” is his advice for
managing money (White, CNBC).
Grayce Spangler, a member of the Arkansas women’s basketball team, has a full ride
scholarship at the University of Arkansas. Through this scholarship, she has her tuition paid in
full and gets paid a little extra on the side for room and board. Every month she receives a
check. Student athletes who live on campus are given $4,000 a year to pay for food, etc. Student
athletes who live off campus are given $11,000 a year to pay for rent, utilities, groceries, etc.
Since they are busy with their sport, they are unable to hold jobs to pay for necessities like this,
so this is how they pay for it. Spangler said that some student athletes send some of the money
they receive to their families to help out at home. Freshman year, it was hard for Spangler to
budget the $4,000 she received because she had never had her own money before. She was given
$400 a month and would spend it all almost immediately. Luckily, the women’s basketball
program has a person on staff who is there solely to help make sure athletes are budgeting
correctly (Spangler, Personal Interview).
A CNBC article discussing a famous wealth manager of superstar athletes states a
professional athlete “[needs] an enthusiastic, supportive and trustworthy individual to guide them
when it comes to their personal finances, especially as most are overwhelmed with the sport and
don’t have time to properly manage their money” (Booth, CNBC).
According to Joe McLean, wealth manager of superstars in the NBA, NFL, PGA,
MLB and NASCAR, when it comes to professional athletes, “the commonality is
that with great abundance comes less discipline.”
McLean is the founder of financial services firm Intersect Capital, which
specializes in servicing the unique financial planning needs of business owners,
entrepreneurs, athletes, and entertainers.
A three-bucket strategy:
To become financially secure, McLean requires that all his athletes fill three
buckets. “There’s a safety and security bucket, which is an entire season’s worth
of cash to support your fixed costs.” If a player owns a home, this strategy
includes a plan to pay it off before the end of the [contract]. Finally, “life