*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).
The Drone Racing League kicked off its 2021-2022 world championship season this week. Spanning across 14 different locations over the course of the year, 12 of the world's best drone pilots will be racing against each other to bring home the title. Drone racing has grown in popularity over the past year, with the Drone Racing League seeing an uptick of nearly 200 percent average viewership, 90 percent in virtual drone racing participation and 60 percent fanbase growth over social media. Rachel Jacobson, President of the Drone Racing League, discusses the future of the sport and why she thinks drone racing will soon be on par with traditional sports.
Bill Enright, Editorial Lead for Gambling and Fantasy Content at Sports Illustrated, shares his insight into the strategy behind betting on NFL futures, such as who will win the Super Bowl or MVP award.
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Jeff Stoneback, Director of Trading at BetMGM, discusses his betting insights for Super Bowl LVI futures, and says a pair of NFC East teams could make some noise come playoff time.
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The final Grand Slam tennis tournament of 2021 will be lacking some of its biggest stars including Venus and Serena Williams, Roger Federer, and Rafael Nadal. However, with legendary names missing from the court, it could provide an opportunity for future superstars to shine. Jon Wertheim, a senior writer at Sports Illustrated, joined Cheddar to discuss the fallout from the cancellations. "This is tennis' version of the NBA after [Michael] Jordan," he said. "Some Kobe [Bryant] or some LeBron [James] will come along, and we'll have new champions to cheer for."
Cheddar Bets, sponsored by BetMGM, is a first-of-its-kind look at the intersection of sports betting and financial markets with insider intel from BetMGM's oddsmakers.
In stories sure to move markets next week, investors will be served another full plate of earnings, the July jobs report comes out, and the Summer Olympics continue in Tokyo.
