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Why NFL players need a game plan for their wealth

RBC Wealth Management financial advisor Osiris St. Brown joins Josh Lipton on Asking for a Trend to share his experience transitioning from football to wealth management and helping athletes navigate the unique financial challenges that come with sudden wealth. An NBER study found that roughly 1 in 6 NFL players file for bankruptcy within 12 years of retirement, underscoring the importance of financial planning long after the game ends.

00:00 Speaker A

You have a unique experience because you played football at Stanford. Uh you got brothers who played in the NFL. I'm just curious Osiris, what you saw or sort of experienced that made you think, you know what? I want to help professional athletes manage and invest their money.

00:19 Osiris

Yeah, thanks for having me John, or Josh, sorry, first of all. And um, really what got me into the business was obviously being a former athlete. You kind of hear these stories growing up of kind of how you just mentioned one in six athletes usually experience financial hardships 12 years after retirement and I never really considered that it could happen to anyone like my family. And then my younger brother Amon-Ra was coming into a big contract. And at the time I was kind of figuring out my career path and it kind of just hit home where I was like, hey, I got to look out for my family. There's a lot of shady individuals not only in this industry but around athletes in general. So I kind of wanted to be that voice of reason and started with my brothers. And now I'm really working with other athletes because I realized, hey, there's a lot of guys out there that are making a lot of money, especially now with college NIL, but the most important thing is what they're doing with this money. And if they're not building a good team around them, if they don't have a good advisor in their corner, then it usually ends up where they end up being part of the statistics. So really just being a former athlete myself, I really want to help these guys get a better leg up. Um something I wish I had when I was in college, a little bit more advice, so.

01:45 Speaker A

Osiris, let's say I you know, I am that young player in the NFL and I maybe I land that big contract. I mean, it's a life-changing contract, Osiris. And I come to you for advice and guidance. What what are some of the, you know, the first conversations you would have?

02:07 Osiris

Uh really, I think the biggest thing is figuring out where athletes are. Everyone's situation is different, so it's hard to really create a cookie cutter blueprint that you can just apply to anyone. So I would say initially it's really about getting to know the client. What's their family dynamics like? Um many athletes they don't come from, they don't have the privilege of having two parent households. a lot of them come from broken homes or they're often times the essential quote-unquote bread winners in their family. So it's really about figuring out where they're at and what their goals are. And based on those two things, then you can kind of start working with them and creating a plan to help them reach those goals.

02:51 Speaker A

You know, you'll hear Osiris sometimes these stories of athletes who just, you know, they end up losing fortunes, Osiris, because they trusted the wrong people. I mean, there are just nightmare stories out there about this. How how do you sort of help guide folks in that? How do you sort of help manage athletes so that doesn't happen to them?

03:17 Osiris

That's it's it's a challenging part. Um a lot of times what happens, or at least what I've noticed is especially with the fact that kids are now getting paid at a younger, I mean getting paid in college. So it's the money's hitting them a lot sooner than it used to. And oftentimes what happens is there's some kind of whether it be an uncle or a mentor, somebody in their corner that essentially becomes their quote-unquote handler and sometimes it's hard to break that dynamic, especially if they have a close family relationship with the player. So it's it's it's honestly a challenging part, but the the biggest thing is, I think the biggest tool I do is try to give these guys the education because if they know better, then hopefully they can do better. So I try to give them any advice to look for shady things that advisors or whoever it may be, it could be marketing agents, guys around that hang around them, some shady things that they might do and if as long as they're educated and they know what to look out for, then um I feel confident that they can notice it and hopefully we weed the bad guys out.

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