*By Lauren Babbage*
Ever wonder how the Olympic gold medalist Michael Phelps and the NBA start Steph Curry manage to turn their sports fortunes into mini-empires, and other all-star athletes end up broke after their playing days end?
Financial success requires the same dedication, preparation, and teamwork that leads to championships, said Frank Zacca, the managing director of Octagon, a wealth management firm that works with superstar athletes.
"They are making so much money while they play over a short period of time that we really want them to have the diversification and think long-term." said Zacca in an interview Wednesday with Cheddar.
A big part of his job is making sure athletes are working with reliable business partners, and that they don't throw all their money into one investment, or go chasing hot sectors like technology and real estate.
It's also important to plan ahead so that earnings from a relatively short sports career can last into the next stages of an athletes life.
"Not everyone is a superstar," said Zacca. "These guys start with nothing. They make their money over a quick period of time and it's tough to educate them early on."
The average salary in the NFL is $1.9 million, and with the NFL draft this week, a number of young players will be looking forward to their first contract.
Young athletes need to know what they're getting into and create different streams of income, like endorsement deals, Zacca advised. And savings are important so that they're not just living paycheck to paycheck, no matter how big a check it might be.
For the full interview, [click here](https://cheddar.com/videos/live-like-an-all-star-athlete).
Exercise equipment maker Peloton is attempting to run away from a recent bout of controversy. CEO John Foley published an open letter to employees on Thursday after reports that said Peloton was pausing production of its Bike and Tread products, delaying the opening of a new U.S. factory, and considering job cuts. In the letter, Foley wrote that the information in the reports was 'incomplete,' 'out of context,' and not reflective of Peloton's strategy. Peloton's stock responded on Friday, with shares bouncing back after falling nearly 24% in the regular session on Thursday. CFRA Research's Director of Research Ken Leon joined Cheddar News' Closing Bell to discuss.
The NCAA has updated its policy on transgender athletes, allowing each sport’s national governing body to make its own decisions for transgender participation. The new rule is in line with recent changes from the U.S. and International Olympic and Paralympic Committees. Joanna Hoffman, communications director of Athlete Ally, joined Cheddar News to discuss the potential impact of the new rule on the transgender community.
The NCAA voted to streamline their constitution at their annual convention on Thursday. Each of the three college divisions can decide how student-athletes can make money from outside sources but still restricts schools from directly paying its players.
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Olivia Harlan Dekker and Sean Green break down and provide their top picks for the NFL Divisional Round this weekend, while Frank Schwab dissects NBA futures and gives his take on the ongoing Nets drama.
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The drama surrounding tennis star Novak Djokovic continues after he was deported from Australia over the weekend due to the nation's COVID-19 vaccine requirements. Djokovic was forced to leave the country on the eve of what was to be his first match in defense of his Australian Open title after three judges ruled in favor of his removal and revealed their reasoning for doing so. Adding to his woes, a law recently passed in France is putting his chances of defending his French Open title in jeopardy. The director of Marist's Center for Sports Communication, Jane McManus, joined Cheddar to discuss the ongoing fallout.
Alex Silverman, senior reporter covering the business of sports at Morning Consult, joins Cheddar News to discuss why the number of those betting on sports doubled in 2021 and what's next for the industry in 2022.
