Hanging onto their money may be as hard for some National Football League players as hanging onto the football.
For that reason, the NFL has teamed up with the Financial Industry Regulatory Authority to promote financial education among NFL players. The Finra Foundation/NFL initiative is aimed at incoming NFL players to help them spot and avoid investment fraud and to make informed financial decisions.
Educational forums are held at key NFL events for incoming players and their families to help them learn how to select a financial advisor and do background checks. The players also are taught about the risks of taking on debt. Similar events are held each year.
"Once again, we are pleased to be working with the Finra Foundation to provide our prospective players with access to essential tools for building a solid financial future," says Deana Garner, NLF director of player security services. "An important aspect of the NFL player engagement mission is to prepare players for all aspects of their playing experience."
"The Finra Foundation's partnership with the NFL is a team effort to ensure that players who are starting their professional careers don't become victims of investment fraud," says Gerri Walsh, president of the Finra Investor Education Foundation. "NFL players have been targeted in the past and the presentations and resources that we are providing will give players and their families the knowledge and tools they need to make smarter financial decisions."
Because of their wealth, sports stars are often the targets of investment fraud. And it's not uncommon for athletes to sue advisors who give them bad advice or who actively steal from them.
Recently, former baseball star Dennis Neagle filed suit against a financial advisor who promised conservative investments but instead invested in highly risky ventures without Neagle's knowledge, the suit says.
Some advisors and firms specialize in representing sports and entertainment stars. The stars often become very rich very quickly, and have to make their new-found fortunes last a life time. Sun Trust Bank Sports and Entertainment Specialty Group is one such organization.
"We are often dealing with people who suddenly have enormous amounts of money," says Thomas Carroll, a managing director at Sun Trust. "They are young, they think they are invincible and many think the money will last forever. For that reason we want them to invest very conservatively."