Financial "Smarts"

[Purple Phart]

Most of us fans can recall what we were doing at age 20. For the majority, it probably did not involve what to do with a substantial amount of bucks, that were acquired as a signing bonus. We probably didn't give much thought to the subject of Money Management, since many of us didn't have all that much. Money concerns for most, begin when one begins making adult type decisions like getting married, buying a house, starting a family, etc. Upon graduation from high school, a good many students have very little instruction in the area of money management. There are even University grads who are somewhat deficient with knowledge of this subject.

This raises the question: Does the OHL have any sort of financial counselling for graduating players who are likley to come into some serious money so early in life. I can appreciate that they probably have a degree of support in this area from parents, agents etc., but we've all heard some horror stories of players who have lost substantial amounts of money through bad counselling. Some adult players have been victimized by people that they trusted with the management of the money that they earned.

To look at the situation on the humourous side, maybe David Branch could set up a Mutual Fund for OHL grads to invest in...and that Fund is used to buy existing franchises, when those become available ? If the Ontario Teachers' Union owned shares in the Maple Leafs, why not extend this into the Major Junior ranks ?

Your thoughts are invited.

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[Buttsy]

Not sure on the OHL however I believe for many years now the NHL has offered Financial Planning for incoming rookies.

 

[AttackSound]

Most of us fans can recall what we were doing at age 20. For the majority, it probably did not involve what to do with a substantial amount of bucks, that were acquired as a signing bonus. We probably didn't give much thought to the subject of Money Management, since many of us didn't have all that much. Money concerns for most, begin when one begins making adult type decisions like getting married, buying a house, starting a family, etc. Upon graduation from high school, a good many students have very little instruction in the area of money management. There are even University grads who are somewhat deficient with knowledge of this subject.

This raises the question: Does the OHL have any sort of financial counselling for graduating players who are likley to come into some serious money so early in life. I can appreciate that they probably have a degree of support in this area from parents, agents etc., but we've all heard some horror stories of players who have lost substantial amounts of money through bad counselling. Some adult players have been victimized by people that they trusted with the management of the money that they earned.

To look at the situation on the humourous side, maybe David Branch could set up a Mutual Fund for OHL grads to invest in...and that Fund is used to buy existing franchises, when those become available ? If the Ontario Teachers' Union owned shares in the Maple Leafs, why not extend this into the Major Junior ranks ?

Your thoughts are invited.

Interesting idea nonetheless, however in the Junior ranks each of these players are advised by player agents at the Major Junior level as well as parents etc.

When it comes to the financial side of that equation the players will typically have their agents to fall back on. You are right with your point that like the rest of the world away from the rink that sometimes these young men get bad advice and get strayed down the wrong path.

In the CHL and for the case of this posting OHL specifically the SPA or Standard Player Agreement contract states that these players are paid a small amount of financial gratuity for expenses a week and the rest is allocated to post-secondary education packages that have a time limit for each player to access prior to exiting the league.

In a roundabout way there is a similar type of system in place for all 60 CHL clubs share in the profits of the Memorial Cup tournament every year depending on what league hosts usually 1/20th of the profits when the OHL plays host. To answer your question on why the CHL teams specifically those in Ontario don't buy shares in the Leafs is simple why would the the lower levels spend money on the next highest level when there are several major junior clubs that break even throughout a season and have massive pressure to keep several key areas of there operation to league standards.

As of right now there are several old facilities that will need minor or major improvements across the league. Especially those in the city of Hamilton where they will have to spend well over several Million dollars to get the building up to proper order or the Bulldogs will have to find a new or different place in the city of Hamilton to call home for the future.

It would be interesting to see what would happen if the league made such changes although as of right now eggshells being walked on that are a result or indirect result of the current CHL lawsuit that is ongoing in the OHL and WHL right now and until the matter is resolved any sort of "financial counseling " as you point out will most certainly be put on the backburner till the dust settles on this matter.

 

[OMG67]

Most of us fans can recall what we were doing at age 20. For the majority, it probably did not involve what to do with a substantial amount of bucks, that were acquired as a signing bonus. We probably didn't give much thought to the subject of Money Management, since many of us didn't have all that much. Money concerns for most, begin when one begins making adult type decisions like getting married, buying a house, starting a family, etc. Upon graduation from high school, a good many students have very little instruction in the area of money management. There are even University grads who are somewhat deficient with knowledge of this subject.

This raises the question: Does the OHL have any sort of financial counselling for graduating players who are likley to come into some serious money so early in life. I can appreciate that they probably have a degree of support in this area from parents, agents etc., but we've all heard some horror stories of players who have lost substantial amounts of money through bad counselling. Some adult players have been victimized by people that they trusted with the management of the money that they earned.

To look at the situation on the humourous side, maybe David Branch could set up a Mutual Fund for OHL grads to invest in...and that Fund is used to buy existing franchises, when those become available ? If the Ontario Teachers' Union owned shares in the Maple Leafs, why not extend this into the Major Junior ranks ?

Your thoughts are invited.

Although that may be an interesting idea, it may be drought with conflict of interest.

 

[Purple Phart]

To answer your question on why the CHL teams specifically those in Ontario don't buy shares in the Leafs is simple why would the the lower levels spend money on the next highest level when there are several major junior clubs that break even throughout a season and have massive pressure to keep several key areas of there operation to league standards.

I believe that you missunderstood my tongue-in-cheek suggestion. It wasn't intended as CHL teams invest in the Maple Leafs...or any other NHL franchise. The thought was to create a Mutual Funf on behalf of OHL graduated players who might want to pool their money, and invest it in an OHL franchise. That could even be extended to the construction and ownership of arena venues. It's not without precident. Didn't Wayne Gretzky once own the Hull (Gatineau ) Olympiques , as a sole owner ?

 

[NOA]

Most of us fans can recall what we were doing at age 20. For the majority, it probably did not involve what to do with a substantial amount of bucks, that were acquired as a signing bonus. We probably didn't give much thought to the subject of Money Management, since many of us didn't have all that much. Money concerns for most, begin when one begins making adult type decisions like getting married, buying a house, starting a family, etc. Upon graduation from high school, a good many students have very little instruction in the area of money management. There are even University grads who are somewhat deficient with knowledge of this subject.

This raises the question: Does the OHL have any sort of financial counselling for graduating players who are likley to come into some serious money so early in life. I can appreciate that they probably have a degree of support in this area from parents, agents etc., but we've all heard some horror stories of players who have lost substantial amounts of money through bad counselling. Some adult players have been victimized by people that they trusted with the management of the money that they earned.

To look at the situation on the humourous side, maybe David Branch could set up a Mutual Fund for OHL grads to invest in...and that Fund is used to buy existing franchises, when those become available ? If the Ontario Teachers' Union owned shares in the Maple Leafs, why not extend this into the Major Junior ranks ?

Your thoughts are invited.

Not sure about the OHL as a whole but Erie in the recent past (might even be a yearly thing) has had planning for success seminars and presentations with financial advisors in Erie. I know they have done stuff similar to that in discussing the future, savings, and budgeting

 

[aresknights]

When the sign a pro contract they have access to finincial "expertts" thru the NHLPA, agents and whoever.

Another ? thou if for those who exercise the option of the OHL education package. If a player gets the full package and decides to go to school at home (avoiding room n board payments) or go out east where schools offer additional aid or bursaries for them they can pocket up to 10-12K per year on top of school being paid for. Maybe there could be a system set up for these situations.
A kid can burn thru that pretty quick with nothing to show for it or save/invest and get a great head start on adulthood.

 

[MatthewsMoustache]

they have access to planners. however, if you were to take a peek of the players parking at one of the Guelph/Ottawa, I'm sure you would be shocked (or maybe not, they are 18/19) at what some of these guys blow their first big check on.

Evan Bouchard's billets live on the same street as me, he has a real nice audi. have also seen Formenton hop out of a decked out hummer.

fact of the matter is at their age, they have their housing, schooling, meals and equipment paid for. unless you really screw up, money shouldn't be an issue for a junior hockey player on an NHL deal

 

[RayzorIsDull]

Alan Eagleson is already talking to David Branch on this one. He can steer Branch in the right direction.