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Old 09-14-2015, 12:38 PM   #21
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Read somewhere that Rob Gronkowski just socks away his Patriot's pay and lives just on his (substantial just the same) endorsement money. Plus it seems his Dad keep an eye on the money for him as well.

Smart kid.
Very smart.

Guy on the Eagles, can't remember his name gets ribbed by the press all the time because he drives this beat up Nissan to work and lives in Center city in a nice but I guess modest Condo for a professional athlete.

He'll quietly do his time in the NFL, keep all his money and open a whole bunch of car dealerships. meanwhile Jason Caffey is flat broke, earned 35 million had 10 babies by 8 different women and can't pay child support. How much do a box of condoms cost. heck, get a snip job
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Old 09-14-2015, 12:39 PM   #22
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Yeah I watched the OTL show which featured this story.

The Youtube is only the discussion of the setup, which covered how Freeney lost his money.

I couldn't find the full show on Youtube or the OTL site.
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Old 09-14-2015, 12:41 PM   #23
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Freeney said he's still financially secure.

However, the big contract he had signed was for $72 million. Often NFL players do not collect the full value of their contracts as when they get older and their performance drops, the teams cut them because only about 1/3 to 1/2 of the contract is guaranteed.

So $20 million would be about half the after-tax money if Freeney collected the full value of his contract.

He is still playing but he's an older player and unlikely to get another big contract.
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Old 09-14-2015, 12:42 PM   #24
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Yup. From Gronkowski's book:

"To this day, I still haven't touched one dime of my signing bonus or NFL contract money. I live off my marketing money and haven't blown it on any big-money expensive cars, expensive jewelry or tattoos and still wear my favorite pair of jeans from high school."

He's definitely the exception to the rule.
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Old 09-14-2015, 12:45 PM   #25
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Freeney said he's still financially secure.

However, the big contract he had signed was for $72 million. Often NFL players do not collect the full value of their contracts as when they get older and their performance drops, the teams cut them because only about 1/3 to 1/2 of the contract is guaranteed.

So $20 million would be about half the after-tax money if Freeney collected the full value of his contract.

He is still playing but he's an older player and unlikely to get another big contract.
And I'm not saying he wasn't bilked by a bad FA but in the whole entire "why professional athletes go broke" scenario, the vast majority are not from a corrupted FA.

like I said, my good friend is on the inside. I know he wishes his clients had more financial advice and way less "posse" members.
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Old 09-14-2015, 12:48 PM   #26
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I don't think OTL is claiming that athletes are typically conned by FAs.
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Old 09-14-2015, 12:53 PM   #27
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Right. He did everything right for someone with limited financial insights. It's not as if he went to "a friend of a friend"; he went to ML!
He didn't do everything right, even in the limited context of someone who had limited financial insight.
-- He didn't keep his money at ML, he apparently let this broker take it with her when she transferred/left.
-- Did he get an independent lawyer/accountant working >for him< to review the paperwork he signed? Every time?

There's no substitute for looking out for yourself directly whenever possible. If a person can't/won't do that, then the alternative is to get someone to work for you who is bound by law to look out for your best interests and who has deep enough pockets to make you whole if they screw up and you take them to court. That's a big law firm, big accounting firm, etc, not Suzy the broker who he thinks is just super.
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Old 09-14-2015, 12:53 PM   #28
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Very smart.

Guy on the Eagles, can't remember his name gets ribbed by the press all the time because he drives this beat up Nissan to work and lives in Center city in a nice but I guess modest Condo for a professional athlete.

He'll quietly do his time in the NFL, keep all his money and open a whole bunch of car dealerships. meanwhile Jason Caffey is flat broke, earned 35 million had 10 babies by 8 different women and can't pay child support. How much do a box of condoms cost. heck, get a snip job
Are you referring to Koy Detmer, the backup QB behind McNabb for years? He was famous for buying the worst car he could to go to camp each year. He would pack almost nothing for away games other than the barest of essentials. And he made a couple million each year. He is more than set for life and then some.
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Old 09-14-2015, 01:04 PM   #29
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He didn't do everything right, even in the limited context of someone who had limited financial insight.
-- He didn't keep his money at ML, he apparently let this broker take it with her when she transferred/left.
-- Did he get an independent lawyer/accountant working >for him< to review the paperwork he signed? Every time?

There's no substitute for looking out for yourself directly whenever possible. If a person can't/won't do that, then the alternative is to get someone to work for you who is bound by law to look out for your best interests and who has deep enough pockets to make you whole if they screw up and you take them to court. That's a big law firm, big accounting firm, etc, not Suzy the broker who he thinks is just super.
I have to disagree. He had his money at ML. His advisor left, I assume to start her own agency. He kept his money with her because he had a financial relationship with her already. Why would he have any reason to think that someone who worked at ML would leave and become a crook?

I dont know the whole story, but just based on those facts, it seems to me that he did what most non financially literate people would do.
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Old 09-14-2015, 01:35 PM   #30
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Are you referring to Koy Detmer, the backup QB behind McNabb for years? He was famous for buying the worst car he could to go to camp each year. He would pack almost nothing for away games other than the barest of essentials. And he made a couple million each year. He is more than set for life and then some.
That's it. drives me crazy when a name is on the tip of my tongue. Now compare him to Allen Iverson who every time you saw him had a "posse" of 10-20 hanger-on with him. His ex wife use to complain about the number of "friends" Allen had.
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Old 09-14-2015, 01:40 PM   #31
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I don't think OTL is claiming that athletes are typically conned by FAs.
I don't know Explanade. if you look at this video, the running tag line says "pro athletes "scammed" out of their money".

I guess when you say "scammed" I think of a different problem. Scammed to me says an outside force came in and ran a game on them.

Like the brother in the video said, most of the time these guys spend like they are fortune 500 ceo's and that the gravy train will last forever.

I think that is a bigger issue.
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Old 09-14-2015, 03:24 PM   #32
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I know that people here talk about hiring a top account/lawyer etc etc.... but even they will milk the athlete... not outright steal, but the high fees add up...


When I was first out of college I worked at a Big 8 accounting firm (yes, 8 back then).... we had a few pro athletes that were clients... we did their tax returns... however, we paid the bills for a couple of them... the famous pro football player actually did not make that much money (compared to today... IIRC he was making $250K in the early 80s)....

But, paying a top accounting firm the high hourly rate to pay bills added up...

We also had another top athlete who lost everything investing in RE just before the crash in Texas... lost everything... got injured and never made good money again... and the IRS wanted a few million in back taxes...
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Old 09-14-2015, 04:27 PM   #33
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I have to disagree. He had his money at ML. His advisor left, I assume to start her own agency. He kept his money with her because he had a financial relationship with her already. Why would he have any reason to think that someone who worked at ML would leave and become a crook?
Why would he think his protections would be the same if he left ML? Wouldn't he know that it's shady for her to drag him with her? Anyway, the results speak for themselves, don't they? Was he adequately protected?
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Old 09-14-2015, 04:37 PM   #34
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Why would he think his protections would be the same if he left ML? Wouldn't he know that it's shady for her to drag him with her? Anyway, the results speak for themselves, don't they? Was he adequately protected?
His protections wouldn't be the same (not that he would know that), but assuming she was honest and handled his money well while she was at ML, why would he think she would suddenly steal his money when she left?

Maybe she was "asked to leave" ML and she was already a crook? Who knows.

I'm sure there are lots of situations where a person has a lawyer, who then starts their own firm and they bring clients with them. If no clients came with them, no new firms would ever be started. What about n accountant who starts his own firm after working at a big accounting firm? I don't see any difference in that and this.
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Old 09-14-2015, 09:47 PM   #35
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Bold added:
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His protections wouldn't be the same (not that he would know that), but assuming she was honest and handled his money well while she was at ML, why would he think she would suddenly steal his money when she left?
The bold part is the only part that matters, and I think Dwight Freeney would agree right about now. When he was with ML, he had the benefit of their internal checks and balances, their external auditors, their desire to protect their well-known name, and if nothing else they had pockets deep enough to make him whole if there was malfeasance. He "trusted her", gave up all of that, and we see what happened.
Truthfully, he shouldn't have been taking investment advice from any broker or anyone employed by a broker. The guy had 20 million dollars, he needed better advice than he got. Or he got the advice and didn't heed it--same result.
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Old 09-15-2015, 02:37 AM   #36
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Sam, I think you bolded the wrong part. How about this:
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His protections wouldn't be the same (not that he would know that), but assuming she was honest and handled his money well while she was at ML, why would he think she would suddenly steal his money when she left?
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Horror story involving advisor
Old 09-15-2015, 06:24 AM   #37
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Horror story involving advisor

A good friend said you take risks to build a big portfolio... When you have one you play it safe to keep it. What a pity ML needs to be fined heavily for violation of their failure to properly execute fiduciary responsibility over his account.

Hint: look for accounts where the principle is declining faster than account owner withdrawals.
Rocket science eh?


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Old 09-15-2015, 08:19 AM   #38
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My only point was that some people here are acting like this is your typical pro athlete who blows his millions on cocaine, hookers and an entourage of his thug friends.

That's not what happened at all. He invested his money wisely with one of the biggest brokers in the world. Most of us here wouldve invested it ourselves but you cant expect him to do that with that much money. 95% of the world knows nothing about investing money.

He had a (long term?) relationship with this broker who worked at ML. He should've been able to trust her. How did Merrill or Lynch get so big in the first place if it is non financially prudent to trust someone starting their own business? They had to start their business at some point. Were every one of their clients back then fools who got lucky that they didnt get ripped off?
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Old 09-18-2015, 12:09 AM   #39
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And I thought that show 'Ballers' on HBO was fiction. Maybe it was more true to life?


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Old 09-18-2015, 12:51 AM   #40
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This is an interesting discussion. It actually does appear the the financial advisor, Eva Weinberg, was convicted of fraud, along with her BF Michael Stern. She served time and is on parole, he is still serving. Money advisor for Chargers linebacker gets prison | FOX5 San Diego – San Diego news, weather, traffic, sports from KSWB
Not sure what conclusion to draw, as it appears the athlete in this case did turn to a licensed professional employed by the wealth management division of a leading financial institution.
Best line from the referenced TV station story:
"Asking the court for a self-surrender date in two months, Weinberg’s attorney told the court that his client now works at a wig shop in Boca Raton, Fla."

I hope the wig shop inventoried their stock before she left for prison.

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