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At age 30, you're at the peak of your career in many professions – unless you're a professional athlete. “It's like they're living life backwards,” says Jim Reynolds, founder and CEO of Loop Capital, who worked with Magic Johnson Enterprises for nine years during his career. “They make most of their money when they're exceptionally young, whereas in business, you don't usually start accumulating real wealth until you're 50.”
The average NBA player retires at 29, which sounds enviable if you ignore the fact that nearly 60% of them face serious financial difficulties after their careers end. But it doesn't have to be that way. Although most retired players can't hit the ground running like they once did, bringing them into the business world can still be a no-brainer for businesspeople like Jim Reynolds who recognize their transferable skills, like tactical acumen and an insatiable competitive drive.
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Reynolds is currently CEO of Coco5, a fitness drink company he owns with an NBA dream team that includes Devin Booker, D'Angelo Russell, Derrick Rose and the Morris twins, Marcus and Markeiff. The company made headlines in the spring after partnering with the American Cancer Society to raise money for research and promote early detection.
Tech entrepreneur Julian Aiken, a former DII point guard, is no stranger to professional sports either. His uncle Bob McCann played in the NBA for five years and many of his high school friends went on to become professional athletes. Aiken is the founder and CEO of Brunswick Sports Management, a company that helps athletes transition into the professional world. Aiken recently joined NBA trio Michael Carter-Williams (retired), Mo Harkless (retired) and Andre Drummond (active) to launch his latest venture: Special Teams Real Estate, a real estate company that converts vacant commercial buildings into residential properties.
Here are some of the universal principles that apply from sports to entrepreneurship, according to these elite athletes and their business partners.
Get a little better every day
In basketball, if you spend enough time shooting free throws on your own, you'll eventually start hitting more of them as games go on. But as Carter-Williams notes, there are no free throws in business. There are no set rules. So the first step for him to improve his business performance was to develop a mentality that makes him a self-starter. Instead of a strict schedule of physical exercises prescribed by a coach, he now makes it a point to strengthen his mind every day.
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“Some days I just force myself to do something or learn something that will help me succeed,” he says. “It can be as simple as looking up building codes on YouTube. Or studying a complicated book about real estate.” His business partner Aiken shares this growth mindset, stressing that improvement doesn't mean going from 0 to 100% overnight. Rather, the trick is to get 1% better every day.
“We don't expect Mike or anyone else to complete an entire project right away. But can you learn enough to complete a small part of it? And can you do a little more next time? And so on.”
A slight percentage increase won't be reflected in Carter-Williams' game reports like it was during his NBA days. He's noticing his progress in new ways, like his growing composure in meetings and his understanding of real estate jargon.
“If I can understand more and answer questions that I couldn't answer two weeks ago, I consider those small victories,” Carter-Williams says. Although Carter-Williams still has more to learn about the real estate business, his NBA experience gives him a built-in advantage: prime access to other professional athletes.
“Not everyone is willing to listen to someone like me who hasn’t been in those locker rooms,” Aiken says.
“But if Mike can go in there and say, 'I've built a sustainable business that will last much longer than an NBA career. This is how I did it,' every NBA player will at least listen to him.”
Accept your role
In basketball, a role player is an athlete with a specific skill set and a willingness to put the team's success above personal glory. They may not score the most points or have the flashiest highlights, but they know their strengths and weaknesses and get the job done. Marcus and Markieff Morris have each spent over a decade as role players in the NBA and understand the importance of knowing your specific strengths and using them to complement your teammates. They've seamlessly transferred that skill to their roles at Coco5.
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As active NBA players, the Morris twins have hit the jackpot in terms of product placement, taking Coco5 directly into some high-profile NBA locker rooms. They've also leveraged their status in some high-pressure conference rooms. During meetings, the twins often regale potential investors with stories about their NBA careers, using their roles as athletes to gain respect, trust and – most often – new customers.
“People love the idea of having connections with professional athletes,” says Markieff. “We can open certain doors just by being NBA players.”
Play the long game
In basketball, it's crucial to think ahead and anticipate where you need to be next. For Michael Carter-Williams, turning on the court is a good metaphor for turning once you leave the court. You should always be thinking about your next move. It's a lesson he regrets not learning sooner.
“Do I wish I had connected with more people in the professional world earlier? Do I wish I had learned more investment knowledge as a rookie and sophomore? Of course.” That's a big reason why Carter-Williams is so passionate about helping the next generation of basketball. Now, as the NBA's liaison for Special Teams Real Estate, he's dedicated to preparing athletes for their next chapter and bridging the gap between current players, former players and businesspeople like Aiken. At a recent gathering at the home of his friend (and former teammate on the Orlando Magic) Cole Anthony, for example, he used his personal experiences to discuss—without jargon—the importance of investing in your financial future earlier than you might think.
Jim Reynolds also knows how to play the long game. For him, it all comes down to one goal: owning equity. For young players like Coco5 partners Booker (27) and Russell (28), owning a share of the company could be more lucrative in the long run than basketball.
“At 45, they have equity in a profitable company, years of professional experience and a prominent reputation to build on,” he emphasizes. “The richest people in America have equity. That's how Magic Johnson became a billionaire.”
Create your very own Auto Publish News/Blog Site and Earn Passive Income in Just 4 Easy Steps
