← Success Story with Scott D. Clary
Success Story with Scott D. Clary
Lessons - Why Athletes Often Lose Their Wealth Too Soon | Marques Colston - NFL Veteran & Entrepreneur
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- [00:00]
Scott
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- [03:03]
Chris
I mean, I've had this conversation with other athletes before, just about, you know, the seasons of their career and how they set themselves up for success. And you can correct me if I'm wrong, but I would assume if you are early, if you're earlier in the draft, sometimes a little bit of ego creeps in. And then I think, because I've seen athletes blow through their money and they end up and there's some wild stats out there about people that don't have post professional sport careers and it's just kind of sad that they can take so much money and you know, pardon the pun, they fumble it, they they it up. So when you look at some of the people you played with, I'm sure that you see stories, not everybody's successful post career. What happens in this, in this situation where you're given sort of the world at such a young age as an athlete and it could be football, I mean, I have examples from hockey of people that screwed up post career and they're almost broke and whatnot. And I'm sure baseball, basketball, like everything, there's always these examples what happens to the athlete. Like walk me through that, that mindset of a young athlete just handed so much money and fame and influence.
- [04:13]
Unknown Athlete
It's not too dissimilar from a lottery winner, right? You know, you live your everyday life and you know, all of a sudden there's this, there's this influx of cash, right? And you know, you get drafted and you kind of see it, you kind of see it coming. But your life is not set up, you know, to receive that, that kind of notoriety is not set up to receive that kind of income. And ultimately more often not, you know, I speak for myself. So I came from a situation where I didn't, I didn't have access to capital, I didn't have access to entrepreneurship and you know, high level business. And most of the people that I knew growing up and the families that I knew, you know, were more blue collar, right. So I just didn't have exposure to what that world looked like. And you know, if you are 22 years old coming out of, coming out of college, you know, you give anybody that's 22 year old, 22 years old, coming out, fresh out of college, you give them, you know, a couple million dollars, there's no telling what might happen right now you, you take that same situation, you put them under the limelight and you surround them with an ecosystem that, that is not necessarily set up to, to really give a. About your best interests. Your best interests are secured once somebody else's best interests are, you know, it becomes a really nuanced situation, right? So you got somebody that has not had exposure. Typically your family and your inner circle still has not had that same exposure. So now you gotta, you gotta depend on people from outside of your inner circle. You gotta hire an agent, you gotta hire a financial advisor. And it really becomes this game of do I feel like I can trust this person? Because at 22, I don't really know exactly what they do. I don't really have the financial knowledge and expertise to even check them if they are doing something fucked up. So you kind of get into this place where you're choosing people to play really pivotal roles in your career and you don't really know how to evaluate and hire for the job, right? So it, it lends itself to, you know, bad decisions. It lends itself to, you know, making young people decisions. But it also lends itself to being in a situation where you are more vulnerable than most because you just don't have that, you don't have that expertise and that exposure to be able to hold the people in your circle accountable. And the people that you trust the most, they don't have the, they don't have the experience and the education to be able to do the same. So you kind of find yourself as the captain of the ship, but you don't really know how to operate the ship.
- [07:00]
Chris
And I mean there's a lot of, I'm sure there's a lot of great, good, ethical people out there that help athletes, but I think there's a lot of bullshit too. I mean, I've spoken to Chris Pronger. He's a good friend and he was like a very big hockey player. It's sort of like my reference point. And he's, he's spoken about some of the people that have not. His agents throughout his career were good, but like people that have solicited investments and he's, he's had some that were just absolute misses and everybody' asking for money because every, and also everybody sees the contract sizes. But I've also seen, and I didn't even know this. He, Chris did a really good job of doing this and some other people on social do this. When you break down like all after tax, after agent fees, after association fees, like it's still a lot of money, don't get me wrong, it's more money than most people make at whatever 22, but you end up spending a lot of it before you actually have any in the bank. And I think that you also just completely don't have the, the understanding of what money is at that point. And I think that's, that's really where you screw up. And I mean, I don't even know if you know stats, maybe you do because you were an athlete, but I've heard some ridiculous stats about how many professional athletes with, you know, seven figure, eight figure contracts are bankrupt and broke and after they, after they finish playing. So it's just sad. It's just very, very sad.
- [08:25]
Unknown Athlete
Yeah. And it, and it is, it is a nuanced conversation again because, you know, I've seen this stat for a decade and it's pissed me off every time I've seen it. It talks about 78% of NFL players are within, within five years of retirement are in financial distress. Right. So yes, there are some of the horror stories and I think by those stories becoming more and more visible, you know, past generations, I think, I think this generation and future generations are going to be able to learn from those, those challenges and those mistakes. But also baked in those numbers is, is the guy that, that played two years and made league minimum. Right? So what is your definition of financial distress? Because at the end of the day, you look at, you look at a salary cap and you look at a roster, you know, the bulk of the money being paid out is going to the top five or six players and then you've got 40, 40 some odd people, you know, kind of splitting up the rest of the pie. And yes, again, you see the horror stories and we have seen the horror stories over the years, but that number is, I would say that number is not, it's a little bit more misleading than people realize because you, you have guys that are, that have not been vested and they have not reached the, the status where they've get getting benefits. You got guys that played 1, 2, 3 years that yes, it's really good money, but it's not, you know, kick my feet up and, and retire for the rest of my life money. So, you know, the numbers are the numbers and and you know, we know there's still work to be done, but it's, it's, it's a little bit more than what meets the surface.
- [10:08]
Scott
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- [13:23]
Chris
Even in your career you were forward thinking I think is the best way to put it. So even walk me through your mindset. When you get drafted, you weren't just waiting for your career to end, to start building. So what was the thing that made you realize like light bulb moment, maybe it was getting drafted at a higher number or whatnot. But what was it that made you realize that? Okay, so I want to set myself up for success post career because I think some of your investments were made while you were still playing, if I'm not mistaken.
- [13:56]
Scott
Correct.
- [13:57]
Unknown Athlete
Yeah, I got started pretty, pretty early on in my career. So I credit that to. I had two financial advisors who were former players themselves who saw something in me and just kind of pushed me to get out of the box. And for me, I've always kind of been a tinkerer. I've always been somebody who's been, you know, interested in technology, interested in more so electronics than anything else. And I've also known that football is a thing that I do that I'm really good at, but it doesn't define who I am as a person. So I think the combination of me just kind of having some self awareness and then having those two advisors that really push me out of my comfort zone and push me out of that box. I was able to get started early and just again some of it just, just being fortunate enough to, to stay healthy enough to play 10 years. I like to say I, I was able over that 10 year run I was able to give myself a, a long enough Runway to make some mistakes, get into some situations. That I loved, get into some situations that I, you know, later realized that I hated and didn't ever want to do again. But you know, over the course of my playing career, when I was kind of at the top, the top of my game from a brand perspective, I was able to get in and get some really, really boots on the ground level business experience that has kind of driven me, you know, in retirement.
- [15:23]
Chris
And the first, I mean you, you said you sir, you had these, these sort of like these two financial advisors, these peers, like players themselves. They, they knew the game, they knew what you were going to have to deal with when you did retire. What was, so what was the, what was the, the first version of, of you investing, of you raising money of. Because you didn't come from an operator background, it's not like you had built a business and then you exited that and then you started investing in something you knew. So now it's like every opportunity to invest is available, but you still lack a lot of operational experience in doing the thing. So how do you bridge that gap? And I'm sure you had, listen, I'm sure you had some, some losses and some, and some, and some things didn't work out so well as well with, with the investments. But talk me through like just as, as a player turning investor, what was the first version of that?
- [16:16]
Unknown Athlete
So really, really early on was just kind of angel investing. I tried to stay in, in a, in a space where I at least knew one part of the business, which was sports. So I, I got started at the intersection of sports and technology. So, so a lot of those early investments were kind of co investments with other athletes. And it was, it was more just deploy the capital and kind of see what happens. But I'd say the first investment that really was the first time that I rolled my sleeves up and got really engaged with the company. I invested in an indoor football team back in my hometown in, I want to say 2010. And for me it was an opportunity to learn the, the, the business side of the sport that I was playing. And it was also, it was in my hometown. So it was a really good platform for me to do some community outreach at scale. That's kind of how I viewed it. And you know, I got in, I made the investment the first year. I was, I was a passive investor. I just kind of watched the owner kind of kind of shadowed him and just watched what it looked like to run a team, to operate a team from soup to nuts. And in watching him for a year, I just, I got that itch. And after the first year, I ended up buying my partner out, taking over the team, sole ownership of the team, and I assumed the role of president, general manager. And my role was literally everything in the organization at that time. You know, we had a small team, so I was doing everything from, you know, selling sponsorships to putting together, you know, ticket sales and marketing packages. I was actually running the game operations. I had the little headset on. I was directing the game. Damn.
- [18:05]
Chris
Okay, so you dove in. You dove into this. That's. That's how you figured out. That's how you figured out work. You just do everything.
- [18:11]
Unknown Athlete
That's good. That's good. Yeah, yeah. So I dove in, man. And, you know, it was. It was one of those experiences. It was probably the toughest thing in my life at that point, just because everything was new and I was drinking from the fire hose, but at the same time, I was right at home because as an athlete, you kind of make a living finding discomfort and pushing through discomfort just to get to a place where you find more discomfort. So that. That connection was. Was really. It was really, you know, top of mind for me. So it was. It was. It was difficult. It was challenging and fun at the same time. And that's. That's kind of what hooked me.
- [18:45]
Scott
Thanks for tuning in. If you found this valuable, don't forget.
- [18:48]
Chris
To hit that subscribe button so you never miss an episode. And if you want to dive deeper into this conversation, check out the links in the description to watch episode.
- [18:56]
Scott
See you in the next one. Hey, everyone, Scott here. I just want to take a second and say thanks for listening to the podcast over the past couple years. Obviously this wouldn't be possible without each and every one of you. I have a favor to ask, so I would love to get some more information about you and why you listen to the podcast and why you listen to the show and why you tune in every week. And I have put together a short survey and we are using this to help us sort of inform what type of content we want to create and the direction of the podcast going forward. This information is not shared with anyone else, so this is just for us internally. And I put together a link so scottdclary.com survey where you can go and you can fill in some information so we can know what kind of content you love. Also, for the first 100 people that respond to the survey, uh, you will be entered into a draw for a hundred dollars Amazon gift card. So we'll be giving out one of those to the first people that respond. It should not take more than two minutes of your time to fill out the whole survey. It's really not that long and it will help you shape the future of the podcast. So I really appreciate each and every one of you and thank you for listening. A huge shout out to Federated Computer for supporting today's episode. Let me explain why I love Federated Computer why they are friends of Success story. They are changing the way businesses buy software because we all need software to run our businesses. I don't care what kind of business you're building, but the best business software doesn't have to cost thousands of dollars each month. So Federated Computer replaces a lot of the software that you're using right now. Let me explain. The average typical Federated computer customer saves 75% or more on their software bill and gets great software, top notch customer service and support, and a software solution that is uniquely installed for your business without any sort of surveillance or breaches of privacy. For example, if you use Google for email, Salesforce for CRM, Slack for team chat, list, Monkey for customer acquisitions and Airtable for data management. With a team of 10, you'd save $9,000 per year on software costs by switching to Federated Computer. They replace all of those and what's wild is that the cost of Federated Computer doesn't grow as your team grows. You can use Federated Computer savings to grow your business rather than feed the woke Silicon Valley software companies. The Federated Computer team literally invented cloud software. They actually have the patents to prove it. And they are taking a hammer to the ridiculously high prices of business software that all entrepreneurs are suffering from. Federated Computer They've been a longtime supporter of Success story. They're offering 30% off their already low prices when you use a coupon code Freelance. So go to www.federated to begin saving 75% or more on your monthly software costs. That's www.federated.com. these folks are going to do you a big favor. Check them out.