*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).
Arthur Blank, Atlanta Falcons owner and Home Depot co-founder, joined Cheddar to discuss business values beyond making a profit and the NFL's stance on racial inequality issues today.
The 2020 men's tennis U.S. Open champion, Dominic Thiem, joined Cheddar to discuss his very first Grand Slam title victory. Thiem made history as the first man to come back from two sets down to win at the U.S. Open.
Lou Harris, the founding member of Black Surfing Association Rockaway, offer free surfing lessons to all kids to teach them how to love the water. The national non-profit was founded in California in 1975 to introduce surfing to more African Americans.
Peter O'Reilly, the NFL's executive vice president of club business and league events, talked to Cheddar about the league's new approach to racial inequality issues this year.
The University of Maryland's head football coach, Mike Locksley, joined Cheddar to discuss a new initiative he started, aimed at getting minority coaches elevated to the next level in their careers. The National Coalition of Minority Football Coaches is backed by current and former coaches as well as executives.
Actress and director, Eva Longoria joined Cheddar to discuss her role in establishing the the NWSL's newest team, Angel City as she fights for equal pay in the sport. Longoria also discusses her experience hosting night one of the Democratic National Convention.
Anti-gun violence activist, Manny Oliver, joined Cheddar to discuss an initiative he started following the death of his son, Joaquin, in the Parkland massacre.
Matt Kalish, president of sports betting company DraftKings, talked to Cheddar about NBA legend Michael Jordan joining as an adviser to the company's board.
NBA all-star Jrue Holiday is working to combat systemic racism by donating his remaining salary. The New Orleans Pelicans guard is working with Resilia, a technology platform, to track his donations and ensure change is really happening.
DraftKings shares climbed in midday trading after announcing that basketball legend Michael Jordan would take an ownership stake in the company in exchange for becoming a special adviser to the sports betting site.
