When Forbes published the top 15 most valuable sports teams in the world at the end of 2023, the NFL dominated most of the entries. However, the National Basketball Association also has tremendous global coverage and has more entries in the list than the English Premier League. There’s little wonder people invest emotionally and financially in NBA player props.
At the beginning of the 2023 season, the NBA expected to cater to more than 200 countries with well over 100 international players on rosters. This gives it a prominent position for individuals to fly financially and set themselves up for life. When a sport is this big on revenue, the top players can build personal fortunes with the right business acumen.
The marketing and expansion of the NBA to diverse audiences has given its high- profile players wealth beyond imagination. Iconic players like Michael Jordan, LeBron James and the late Kobe Bryant are among the most monied stars of their generation. No player has earned more on the court than James in the last two decades, but he has made good in other areas of his life too by being as smart elsewhere. Owning a two per cent stake in Liverpool FC is just one example.
Names may last forever but playing professional basketball doesn’t. Jordan may have won six titles with the Chicago Bulls, but he has assets and prizes away from the court by investing in a sports betting firm, becoming a NASCAR team owner and earning millions from corporate partners like Nike. Forward planning was key. His ability to set goals, targets and discipline was a good model for an entrepreneurial career.
The way to the stars is on the court but when young NBA players get rich quick, the danger is that they could squander their fortune while the going is good and the days are heady. Players have short careers, barring the greats, and when they go from making no money in College to millions in their first year, advice is paramount to increase their net worth and plan for comfortable security later in life.
The NBA Players Association already offers online financial advisory firm advice to players, providing free digital financial tools and investment options. Like its rich brother, the NFL, looking after money and increasing personal value is vital, especially if injury ends a career prematurely. There is a tomorrow that goes beyond the next match
One of the most surefire ways of earning a stable income is through personal business enterprises. Veteran Thaddeus Young has been at the forefront of the culture change in the NBA. His investment portfolio includes over 300 companies. More players have becomes businessmen off the court. Digital sports brand Overtime, a company that connects with Gen Z, already has investment for a small but significant amount of NBA regulars while Phoenix Suns’ power forward Kevin Durant owns a pickleball franchise. There are many more like him.
Legend Shaquille O’Neal is among those who have built a vast real estate empire. Professional athletes, especially in leagues like the NBA often move from different cities as they transfer to different teams, providing a natural path to live or purchase properties across states. Recently, Andre Drummond of the Philadelphia 76ers joined up with former NBA players Moe Harkless and Michael Carter-Williams to create Special Teams Real Estate, a commercial development firm. Hall of Famer Grant Hill didn’t change his lifestyle during his playing days but benefited from studying hard assets.
The 2024 Rookie of the Year, 20-year-old Victor Wembanyama’s first thought was to purchase an $850 Millennium Falcon with his first pay check. It showed a connection with the mainstream. The French star has become a brand partner and investor of a renowned hydration fitness drink. The idea of being elite on and off the pitch is something that can strike home with NBA’s age grouping and influence. Marketing success with the best that you can be tag line is a personal brand that has infinite value.
Over a decade ago, ESPN made a documentary about how stars from major American franchise leagues, including the NBA, lost their money through ill-educated decision-making as the lure of huge mansions, flashy sports cars and jewelry became as addictive as shooting hoops.
The NBA now is much better at warning its young, raw and upcoming workforce to look after their personal wealth. When players receive the huge salaries that come off the back of such a cash-rich league it can go to their heads. Now there is a system in place where a tap on the shoulder can initiate a healthy personal net worth that looks forward rather than just living in the present.
