As More Student Athletes Get Paid, Financial Coaches Take To The Field ( Click the link below to read the full article)
Derrick Alexander, Owner of Greater Works Wealth, former student athlete, and advisor to multiple athletes, favors athletes getting paid.
“I do wish there were more boundaries around when these young athletes receive their money,” he cautions. “Also, there should be incentives for positive activities that help them transition into the real world after graduating.”
Statistics show that only a tiny percentage of athletes ever play at a professional level. According to the NCAA, less than 2% of college athletes go on to play professional sports. Even then, a permanent position is hard to sustain.
Athletes may only last several years playing in the big league and are vulnerable to a change of circumstances. A sudden dip in performance, accident, or injury could spell disaster for their exceedingly short careers.
“The biggest financial pressure for an athlete going pro is learning to live on a realistic budget,” says Alexander. “The reality is that when their career is over, they won’t be living on a $500,000–$1,000,000 annual spending budget.”
“My goal when working with college athletes going pro is to help them live within an income they could earn in a post-sports career. For example, a football player who grew up in Texas might realistically land a high school coaching job after their playing career. In that case, it would make sense for the player to limit living expenses during their rookie contract to under $100,000 annually.”
