Now that the 2010 NFL draft is over, the lights are dimmed, and the realization that a new life is about to begin is now settling on all of them, the 2010 draft class needs to start thinking about the future, right now.
Considering the current labor situation in all major sports this year's rookies are in a unique situation. Now more than ever the financial security that they have needs to be protected and leveraged for their future. This year their immediate future is the biggest concern. With the uncertainty of the 2011 season even happening, rookies need to start saving, and putting together financial plan now. While they're prepping to get ready to learn their playbooks, leave their campus, say goodbye to their college friends and their lives of the past 20 some years, they need to be assembling the team around them to help them with the next 80 years of their future. The same reason they made it as far as they have, with a team around them, is the same reason they can be successful in the future, if they plan for it today. All great CEOs have learned this lesson well. Surround yourself with smart individuals, monitor and manage those individuals, learn and grow as you're doing it, are the ingredients to create a successful start-up business. Well, this year's draft class, and especially the top 10 picks, are all what I like to call, "Mini CEOs". These young men have the opportunity to control their own destinies from now on, but that's if they don't give in to the "MTV Cribs" lifestyle, or the "Pimp My Ride" mentality. We all know the meaning behind those metaphors, deciding to take your signing bonus and by the biggest house, or buy the most expensive car or two. While the draw to purchase these items and to live out the fantasies that are blasted into their eyes and ears on television, and in music is strong, a Strong team, with a focused vision, coupled with open and honest communication with the player, is the answer to that Sirens call. Investing conservatively with preservation of capital in mind, will ensure that not only will they have money during this impending lockout, but they will also start on a journey that will ensure that there children, and maybe, in some special cases, their children's children, will be well taken care of.
The components of this team would be your agent, your financial advisor, your CPA, your business attorney, and your academic advisor. While the first four members of your team are probably well recognizable, the last part is really the most critical. Making sure that you either complete your degree, or go for your MBA, will not only enable you to manage your team and yourself more effectively, but will prepare you for life after the game. Remember, the average NFL lifespan is only 3.5 years. So when you think about it, even with the outstanding signing bonuses of the top draft picks, these young men are only 21, 22, or 23 years old. So if a player barely makes it, for some unfortunate reason, to the average 3.5 years, whatever they have gained in guaranteed money, or signing bonus, has to last them for the rest of their lives. after that, their earning potential drops back down to pedestrian levels, or what I like to call the real world. Now we've seen lottery winners run through $50-$100 million within a span of a couple of years. And we've seen unfortunately professional athletes do the same.
By implementing the team strategy and sticking with the conservative investment platform, and investing in yourself with your degree or advanced degree, the harsh reality of that radical adjustment in the players lifestyle will be lessened, and in some cases not change at all. The player will be creating leverage for themselves that will help them win off the field, in the board room, or as an entrepreneur, the same way their leverage helped them win on the football field.
Nolan Harrison III
Vice President | First Midwest Bank
NFLPA Former Players Board of Directors
NFL 1991 to 2001
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