A look at the lack of financial education available to players

[LadyStanley]

Breaking down an NHL salary: The numbers aren't as big as...

Paywall. The Athletic looks at one hockey player's financial life and education.

This is the story about one NHLer’s education in all matters fiscal, a tale he hopes will demystify what remains a taboo subject in most dressing rooms and – why not? – maybe even help others avoid his mistakes.
...
According to Spotrac.com, the median salary last year in the NHL was $2,875,000. But 193 NHL players earned $1 million or less. Fully 100 of them made under $800,000.

This is not intended to provoke pity – hockey players are firmly entrenched in the one percent – but it’s a fact that NHL players are underpaid relative to the other major professional sports. And they’re probably not taking home as much money as you think.

Oh, and they don’t play for very long. Estimates vary, but there seems to be an informal consensus that five years is a good guesstimate of the average career length. More than half of the people who play in the NHL suit up for fewer than 100 games. It’s not quite NFL running back short, but it’s no kind of security.

Politics, religion and money are three topics that most folks feel are either too personal or too disruptive to have "polite" conversations about.

However, to live in this world, one must have a good basis and plan for the long term future. Especially when the average hockey career only lasts half a decade or less.

Some high schools (or even middle schools) are pushing financial education as part of their curriculum.

The NHLPA does provide some financial training for rookies, but how many just tune out instead. Some of the full service agent companies do offer financial guidance, but it is not a requirement (that I'm aware of). Some guys may pass the buck (literally and figuratively) to wife/girl friend and let them deal with things so the player can concentrate on their career. But WAGs don't necessarily come with a good financial background themselves. Some "friends" have approached players about investing in stuff, and some players have lost a lot (as seen with parents who took out loans against son's financial future, or a BC development that lost millions from high profile retired players).

Definitely an issue that will probably be able to be discussed forever.

Click to read more...

 

[USAUSA1]

Nhl players(in the US) are lucky because most of them are millionaires and can live a normal life with an enormous bank account. No security no stopping for autographs for the most part unless you're someone like Ovie or PK who is recognizable.

 

[ColinM]

In many respects their financial situation is a lot like lottery winners. They receive a windfall that they think will last forever when in fact it can last for a very short time if they are not careful. It's even worse for athletes who grew up poor since they didn't have the chance to learn how to save, but only the chance to learn not to spend.

ESPN did a 30 for 30 on this very subject.

 

[drktmplr12]

its not only an issue for superstars, but for the plugs (as this forum affectionately refers to) as well. the league minimum is still a lot of money, and in just a few years one could amass a small fortune that can be leveraged to create adequate cash flow to handle 70-100k worth of annual expenses.

 

[Fogelhund]

I worked hard for a number of years, to break into building a relationship, with a small agency, for the purpose of giving prospects, and NHL players financial advise. The vast majority of these players, have much more than basic education, with little knowledge how to manage their finances properly. I've heard of, and seen so many poor decisions made, with large quantities of money by athletes. Low probability restaurants, scams and so on. Often, people turn to those that they trust, when it comes to money... family, friends, other hockey players, and these people are quite often, no more qualified or have any financial expertise than the hockey players themselves. As an advisor, it would be a great business to break into, but an area where you could really make a difference to people too.

 

[tony d]

To me all these players should receive courses in financial literacy. A lot of them make more money than you or I every year. We can make due, so should they. You don't need to have the most expensive car or house.

 

[Jumptheshark]

the ball is in the players court for educating themselves on this topic. There is not a LACK of education available if they are willing to pay for it themselves

Back when bonuses were allowed for players--the Sedins made part of their contract that the Canucks would pay for the Education

I get paid next to nothing and sometimes work 60+ hour work weeks--I still found time to work on a BA in business --took me 5 years to do it--but I got it done.

People need to rely less on others for certain things and get self educated and aware

 

[ijuka]

Shrug, you don't need financial education, just enough common sense to go to a bank and discuss setting up for future with your banker. What's with requiring education for all sorts of simple things nowadays? Next thing we'll complain there's no education for players on how to go to convenience store to buy bread.

 

[LadyStanley]

Shrug, you don't need financial education, just enough common sense to go to a bank and discuss setting up for future with your banker. What's with requiring education for all sorts of simple things nowadays? Next thing we'll complain there's no education for players on how to go to convenience store to buy bread.

And the Bank of Podunk in the neighborhood is not FDIC insured, as opposed to Major Regional National Bank which is and the guy can lose all his $$ at the former.

Also, some "banks" do provide investing in stock and other instruments when do not guarantee returns nor protect the principle.

Very simplistic approach outlined.

 

[LadyStanley]

Paywall.

Scott Burnside describes the Rookie Orientation Program, recently held, where 80 kids came together to be informed and listen to stories of NHL alumni that went through bad things, like Stanley Cup champion that was the driver and a friend killed, so spent a year in jail or other personal stories to impress on the kids the good and bad.

And how to interact with media and utilize social media (the later has totally changed over the past few years).



Glad they are getting more financial education.

 

[TheWhiskeyThief]

Financial planning for dummies(who are American):

Establish a trust that all your bonuses goes to before you sign, have the trustee be someone you trust implicitly. Always ask for bonuses over paragraph 1 salary as much as you can get away with.

Hire a financial adviser and get them down to 50bp because you’re not doing anything crazy with your money. They get the rub off of you and you don’t take up too much of their time.

Establish your domicile in a low tax community property state(TX, NM,AZ, NV)

Don’t buy a house until you’re about to get married/start a family, but buy it before then. Buy close enough to the practice rink rather than the stadium.

Rent a house with roomies until you get married. Have utilities in different roomies names so when someone moves on/ out the transition isn’t a problem.

Live off your per diems until the 3rd contract.

Put the salary in long dated Muni bonds in your name.

Don’t start a business until you’re retired, only do it if you’re not getting into management and keep it small enough so you are in it to qualify for social security/Medicare. Your name/expertise should be the leverage, not your money. Find the jock sniffers to fund the idea.

 

[sawchuk1971]

Breaking down an NHL salary: The numbers aren't as big as...

Paywall. The Athletic looks at one hockey player's financial life and education.





Politics, religion and money are three topics that most folks feel are either too personal or too disruptive to have "polite" conversations about.

However, to live in this world, one must have a good basis and plan for the long term future. Especially when the average hockey career only lasts half a decade or less.

Some high schools (or even middle schools) are pushing financial education as part of their curriculum.

The NHLPA does provide some financial training for rookies, but how many just tune out instead. Some of the full service agent companies do offer financial guidance, but it is not a requirement (that I'm aware of). Some guys may pass the buck (literally and figuratively) to wife/girl friend and let them deal with things so the player can concentrate on their career. But WAGs don't necessarily come with a good financial background themselves. Some "friends" have approached players about investing in stuff, and some players have lost a lot (as seen with parents who took out loans against son's financial future, or a BC development that lost millions from high profile retired players).

Definitely an issue that will probably be able to be discussed forever.

will this article help guys like jonathan toews?

saw a tsn article where hes crying poor over escrow charges...

“I'm no financial expert,” Toews told John Dietz of the Daily Herald at the end of last season. “All I see is that I've signed a contract and to me, it's not exactly being honoured. So I don't care what business you're in – to me, that's kind of ridiculous.”

interesting graph that shows earnings lost from escrow charges has been on the increase since 2012...

 

[LadyStanley]

Escrow history is something else and there are other threads on that.

 

[SupremeNachos]

I don't think it's a lack of opportunities as it is lack of understanding. The other 3 major sports struggle with this as well and some even offer/force services once you sign a contract. I know most of us older folks can look back and say "If I was given all that money at their age I would have had plan A, B, and C in place", but how true is that really? The NHL is a bit different than the NBA and NFL because of the backgrounds of the majority of draftees and it plays a big part in why the other 2 leagues have such a problem with players going bankrupt after they retire. There isn't just one or two ways to go about saving your money properly even though lots of "advisors" say otherwise. Each situation is different and should be looked at as such as well.

 

[justafan22]

This is a thing that is a problem for non athletes.

The lack of financial education in most public school systems in high school is apalling.

 

[David Dennison]

How many millions are athletes gonna lose investing in CBD startups?

 

[SotasicA]

Just let your dad handle it all for you.

I'm sure it'll be fine.

 

[Pilky01]

What an unbelievable load of horse shit. There is no "lack of financial education available to players".

Financial education is available to literally everyone and professional athletes have less barriers to that education than pretty much anybody on earth.

 

[TheWhiskeyThief]

How many millions are athletes gonna lose investing in CBD startups?

Eveery one of them that grows.

Too many growers jumping into the market, supply will dwarf demand. A guy I know who has been growing out West said he’s cashing out by next year.

In addition, there will be CBD manufactures that will be brewing it using GMO yeast at purity levels, costs and volumes growers can ever match.