Athletes and Smart Investments
When it comes to popular professional athletes, the last thing we think about is how they use their money in ways other than new houses and supercars. However, there have been many times that athletes used their money in very smart investments to get large profits and benefits in the future.
The National Basketball Association (NBA) is notorious for having players make lucrative investments and financial choices. The wealthiest and most NBA popular player of all time Michael Jordan, who had ventures from movies and television to his prominent clothing and shoe brand, has made his fair share of investments in a wide variety of things. His largest investment has been the ownership purchase of an NBA team, the Charlotte Hornets, for about $180 million in 2010. Due to much rebranding, team development, and a rise in popularity, the value of the Hornets team has risen to be about $1.5 billion as of late - a massive profit! Jordan has found a way to combine something he is passionate about, the NBA, and invest it in to benefit greatly, something that is ideal for many of us.
Another NBA legend is the late Kobe Bryant, who has also made a great number of profitable investments. After establishing an investment firm, Bryant invested in rising companies like Dell, Epic Games (developer of Fortnite), Alibaba. A specific investment was $6 million in BodyArmor, and his stake is now worth around $200 million.
Serena and Venus Williams, the superstar sisters of tennis, have been wise with their investments as well. In 2019, Serena Williams was the only first athlete ever to hit Forbes’ annual list of the World’s Richest Self-Made Women, with a fortune of around $225 million. With her wealth, Williams saved, leaving her money in a savings account. Her investment firm, Serena Ventures, invests in riskier and early companies with the help of professional mentors and has doubled her portfolio to more than $10 million.
Alex Rodriguez, a renowned baseball player, found passion in real estate investing. His first investment was in a duplex (a housing building with two units) in South Florida, and he had branched out ever since. Through his corporation, Rodriguez has been able to rack up more than $700 million in real estate assets across 13 states. He also invested in companies such as Snapchat, VitaCoco, Wheels Up, and NRG eSports.
How It Relates to You:
Looking back at all these athletes with their millions of wealth and huge investment purchases, you may be wondering how that relates to you at all. First, it is important to note the diversification of these investments; there is never only one company or industry invested in, all of these athletes have shown a diverse portfolio, which is the safest and likely most beneficial route when it comes to investing no matter how big or small. Furthermore, not everyone knows everything about investing. These athletes have investment firms with several professionals guiding them, meaning that they had to learn more about money and investing to make the best decisions. Lastly, patience is very important. Michael Jordan’s investment in the Hornets was not an automatic high profit right away. The Hornets were considered to be one of the worst teams in the NBA when he purchased it in 2010. He had to be patient, waiting for developments and talent to come to the team, which was not very promising. While we cannot relate too much to the wealthy economic ventures of athletes, we can look at the lessons provided by their actions and learn a thing or two!
Written by Brian Caballo