Bad advice, bad decisions: the loss of Michael Vick's fortune

Well, it looks like Vick has no one but himself to blame.

 

Dat's turrrable.

 

Thanks for the info.

 

I'm not sure how you can trust these suckers.. Be like Lebron and go to Warren Buffet... or to JPM or GS or LEH.... hell sign up for an acct at scottrade and invest in mutual funds.. what the hell do you need to hire random ppl for?

And marketing firms that charge 25%??? Are you kidding me...

I'm amazed at how easily and gullible he was to trust his millions with idiots when he could have kept it in the mattress and still had enough for 3 generations to retire on.

 

dude... i wouldn't trust these no name fund managers with 100 bucks...

the ppl who want more are more likely to lose everything... trust the big names.. like Goldman Sachs, and Vick is still a multi-millionaire.

it's not like he was paying less fees... christ, 25%??? are you kidding me... vick could have marketed himself on craig's list.

 

Damn, that sux...I only read half the article and I can't believe it...Hell, Nike endorsement, etc. Where does it all go...

I'm sure athletes get taken advantage of all the time...Sad to say, but athletes are know for their athleticism, not their financial minds...

 

I have more info for you on a related issue.

Another resource was available to Vick.

NFLPA Financial Advisors FAQ

<I>
<B>Why has the Program been created?</B>

The idea for the Program came from the players themselves. Many players unfortunately, have become victims – not just from poor financial advice, but from outright fraud. In fact, from 1999 to 2002 at least 78 NFL players were defrauded of over $42 million. The need for a program to protect the players is clear.

<B>
What are the benefits of the Program?</B>

The Program was created by and for the players to provide an additional layer of protection – not just from poor financial advice, but from outright fraud. The principal intent of the Program is to benefit the players themselves.

All financial advisors duly registered in the Program will be listed on the NFLPA’s password protected website. The advisors list contains the name, address, telephone number, e-mail address, and website address and link of each registered advisor. NFL players and agents have the ability to search the list based on select criteria, i.e. name, service or region.

The NFLPA hosts an annual conference for registered financial advisors. We make every attempt to offer conference easily accessible to advisors and firms in all regions of the country. There is no additional fee for the conference, but every advisor must pay his or her own expenses. The conference presents extensive information and materials on the Program, players’ benefits, compensation structure, tax, insurance, pension, and other relevant financial issues confront NFL players.

Under our SEC ruling, no individual financial advisor or company will be recommended over any other, nor will any specific advisor or firm be marketed to the players.

According to the No-Action letter issued to the NFLPA by the Securities and Exchange Commission (SEC), no individual financial advisor or company will be recommended over any other, nor will any specific advisor or firm be marketed to the players.


<B>What is the relationship of the players' agents to the Program?</B>

While the Program is voluntary for financial advisors, it is mandatory for contract advisors (a.k.a. agents) to the players. All NFL player-contract advisors are fully regulated by the NFLPA and cannot do business without NFLPA certification and approval. Under our regulations governing contract advisors, every contract advisor must refer their player-clients only to financial advisor registered in the Program – or risk decertification or other disciplinary sanction. Similarly, any contract advisor providing financial advice must also be dually registered in the Financial Advisors Program.

<B>
Does the operation of the Program subject the NFLPA to U.S. Securities and Exchange regulation?</B>

The NFLPA’s No-Action letter, issued by the SEC’s Division of Investment Management, dated January 25, 2002, stating that it agreed that the NFLPA would not be an investment adviser as defined in section 202(a)(11) of the Investment Advisers Act of 1940 as a result of operating the Program. The SEC’s Division of Investment Management also confirmed in that letter that it would not recommend enforcement action to the Commission under Section 204(4) of the Investment Advisers Act of 1940 and rule 206(4)-3 there under against the NFLPA and investment advisers that participate in the Program if those investment advisers make cash payments to the NFLPA as described in the no-action letter and do not treat the NFLPA as a solicitor for purposes of rule 206(4)-3. However, this relief does not constitute an approval, endorsement or recommendation by the SEC or its staff of the Program.
</I>


<hr>
Rookie Camp for the Newly Rich

<I>
September 1, 2004

(MONEY Magazine) – Like a lot of guys heading off to the big city for their first job after college, Quincy Monk didn't know (or care) all that much about stock markets, money management or the finer points of hiring a financial adviser. Unlike his contemporaries, however, he needed to know all that stuff--and fast. For Monk had what in our society is a highly marketable ability--he was (to reduce a complicated matter to its bare essence) exceptionally gifted at bringing swift men carrying footballs to an abrupt halt. That skill was about to award him a sum of money that nothing in his life had prepared him for.

Monk was one of the 261 rookies who made the leap into the National Football League in 2002, running straight into a buzz saw of wealth and fame. Monk's three-year contract with the New York Giants promised him a minimum of $930,500 (including, in 2002, a $225,000 salary and a $25,500 signing bonus). That's some serious green for Monk, a bright student who grew up middle class in a small North Carolina town. As for what to do with it, he had no good ideas--and no shortage of people willing to offer him bad ones.

In fact, shortly before Monk joined the league, the number of players losing money to poor investment advice, harebrained schemes or outright scams had become a major concern. In a roughly three-year stretch in the 1990s, for example, 78 players were bilked out of a cumulative $42 million. In one of the most prominent cases, Tampa Bay Buccaneers star defensive end Simeon Rice lost $2.4 million to a charismatic flimflam man named Donald Lukens, who also cleaned out more than 100 other people, including neighbors and fellow parishioners. After cases like Rice's, the NFL Players Association (NFLPA) decided the teams could no longer simply shower riches on their young employees and send them out to be fleeced. "Our guys," says Trace Armstrong, the former Pro Bowl defensive end and past president of the union, "have targets on them."

Out of that realization arose one of the most remarkable employee education projects in the country. Although the league already offered a financial seminar to its rookies, Armstrong and his colleagues at the NFLPA wanted to do better. Working with the Securities and Exchange Commission, universities and financial services firms, the league and its union created what amounts to a high-intensity rookie camp in money skills, with tailored information, interactive workshops and its own website. (Full disclosure: Among the organizations that the NFLPA enlisted to help was MONEY magazine.) In 2002, the NFLPA Financial Advisors Program was launched, the first in pro sports to certify financial professionals for players to consult.

While the program is designed for pro athletes, the lessons that are taught apply equally well to the rest of us. As Stacy Robinson, the former Giants wide receiver and now the Players Association's director of player development, points out, "These are life skills we're talking about."

On a summer morning at San Diego's tony La Costa Resort & Spa, Trace Armstrong steps up onto a ballroom stage, flanked by wall-size monitors blaring his career-highlights clips. Before him, a group of 254 exceedingly large young men sprawl across leather chairs. The rookies are there because they have to be--the league fines absentees $10,000--and the amount of fidgeting suggests they're not looking forward to a lecture on why they shouldn't buy themselves a BMW. Armstrong, who sports the water-main-size neck of a man who once led the AFC in sacks, takes the mike. "Sit on the edge of your chairs," he barks, sounding like a coach. "How many of you are getting financial advice from someone right now?" A smattering of hands pop up. "How many know if your adviser has a criminal record?" The fidgeting stops. Armstrong nods. "You need to know."

Armstrong lays out the facts of financial life for a rookie football pro. The good news is, they are well paid for entry-level jobs: The base salary for a rookie last year was $256,000, with an average bonus of $720,000. The downside is an utter lack of job security: Armstrong points out that the typical NFL career lasts only about 3 1/2 years, cut short by injury or the onslaught of stronger, faster, younger players. "NFL," explains Quincy Monk, "stands for 'not for long.'"

As a group, the rookies prove no more financially savvy than any other group of 22-year-olds. The world of investments is totally unfamiliar, and a few of them are even a little murky on the financial details of the agent-player relationship. But their attitudes toward money surprise the organizers: Most view it as a tool for creating financial security, not for personal aggrandizement. They're clearly ready to learn.

Armstrong is followed on stage by MONEY's Sheryl Hilliard Tucker, who helps the players put their new wealth in perspective. A $500,000 bonus may sound like a lot, she points out, but $15,000--or 3%--goes straight to their agents. The IRS has dibs on the next $170,000 or so. Once a rookie is done buying his mom a house, his fiancée a ring and himself a fancy car (all popular goals among this group), a sum that many thought would have set them up for life has all but vanished.

More important than the numbers are the emotional challenges of their new status. Almost all the players are under intense pressure to share their wealth, and some pleas are hard to turn down, like the little sister who needs help with tuition, say, or the best friend who has trouble paying bills. Learning to set boundaries is crucial. The NFLPA suggests that rookies set up an informal trust fund, or "friends and family account." A player can replenish it every year, based on his budget, and decide in advance the kinds of loans or gifts he will consider (yes to tuition, say, but no to cosigning loans). That makes it easier for a player to keep guilt or good intentions from getting the better of his budget.

Throughout the symposium, the NFLPA urges players to save their bonuses and max out on the league's generous 401(k), which kicks in $2 for every dollar the players save. Rookies and their wives can also follow up with a series of finance courses administered by Michael Haynes, the vice president of player and employee development for the NFL and nine-time Pro Bowler.

Armstrong and his colleagues realize that the best thing they can do for a rookie in the long run is to help him find a trustworthy adviser. To get into the killer Rolodex that is the Advisor Program, a financial pro must meet certain requirements, such as a four-year college degree, the necessary state and federal licenses and at least three years' experience. Every applicant must agree to a credit check and complete an exhaustive 17-page disclosure statement about his or her background and practices. "Not a single one of the advisers who defrauded the 78 players would have made it through our background check," says Dana Hammonds, the assistant director of the program.

Do the lessons of rookie camp stay with the players? They've certainly registered with Quincy Monk. Despite having teammates who make a lot more than he does, Monk is determined to stick to his budget. For starters, he bought a townhouse, not a mansion, in his native North Carolina. "You see these guys driving a new car every day," he laughs. "Me? I just got one car. I'm good with that." Working with an NFLPA-approved money manager, he's built a portfolio of stocks and funds poised for growth. And, he adds, "I'm loving the NFL's 401(k). Two-to-one match? That's a great deal."

Monk's career with the Giants--he was sidelined with injuries for most of his first year--shows just how iffy his profession can be. While he exudes optimism, he has also prudently socked away enough cash that he'll be fine if he doesn't work for 12 months. "I'm living my dream," he says, "but thinking ahead."
</I>

 

stories like this make you appreciate guys like magic and oscar de la hoya for being great athletes as well as their business savy.

 

Now that's a smart kid.

 

Yes siree.

 

Couldn't have happened to a nicer person.

 

I still don't see how you blow so much money, or put yourself in a position to get screwed like this. I mean, even if you know NOTHING about finances, simply put your money in a basic bank account if you know you can't tell if folks are screwing you over or not. I mean, your $20M won't grow as much...but you know you won't lose any of it.

 

There are just too many idiots in the world, many a person have lost their life's savings to all sorts of frauds.

 

Oh well, tough life lessons for Vick.

DD

 

Dude. That lady's financial advice to Vick was Wong.

And contracting HIV from people other than their wives and still playing even though we know they will get scratched and will begin to bleed on other players.

 

magic johnson wasn't married when he contracted HIV, he was only married two months when he found out.

 

Fine, then, I made a mistake: his unborn baby mamma, ok? I guess that made it ok to be getting the dreadful virus, eh? Dude shouldn't have kept playing basketball, either way.

 

that's about the dumbest comment you've made, and while judging everyone you've made some dumb ones.

I guess it made it okay to getting the dreadful virus?, you act like he wanted it

 

You act like you knew he didn't... but he still got it 'cuz of unprotected sex and cheating on his--according to you--girlfriend. That's not being a good businessman.

 

so now we get to the root, one has nothing to do with the other. cheating on his girlfriend, and what does according to me mean? why are stuck on this fact, he wasn't married.

you don't know what magic did to contract HIV, you don't know who he was with or who he was seeing, and nothing has to do with the fact that he's a good businessman so this is a stupid argument to begin with. you just don't like magic so you brought up nothing that has to do with the thread topic. money and athletes.

and what is with the "I act like he didn't" I think we can all safely assume magic didn't want to contract HIV, I mean, I know none of us know him but I think that's a safe assumption