Athletes and entertainers face unique wealth management opportunities, considerations and challenges. The athletes and entertainers we interviewed shared their personal stories and perspectives to highlight the need for more financial education in the sports and entertainment world. We thank them for being strong advocates of financial literacy.
Mason’s advice
Mason’s advice
“It’s truly an advantage to come into this level of wealth early in life. Managing your wealth is never going to be your full-time job. It’s your responsibility to find advisors who are really good at it.
Partner with them to invest with the end in mind. Don’t take anything for granted—you’re one injury away from your career ending.”
Strong principles
Mason comes from a long line of basketball players. His parents, grandfather and uncles all played college basketball. His brothers Miles and Marshall have also played in the NBA. Despite his basketball pedigree, Mason had a conventional middle-class upbringing in Indiana. His parents, Leslie and Perky, met at basketball camp and went on to pursue careers as a pharmacist and attorney respectively. “Both my parents worked full-time. They were financially conservative and responsible.” Mason’s grandfather, a retired professor, owned a working farm where grandchildren helped with chores.
A strong work ethic was instilled in Mason early on. “On a farm, you don’t punch a clock—you work until the task is complete.” The principles he learned at home helped Mason to stay grounded in the heady world of the NBA, where the 30-year-old has earned over $50 million in career income.
Basketball dreams
By middle school, Mason was traveling across the country with his summer Amateur Athletic Union basketball team. The experience gave him a taste of the NBA lifestyle. “I now fly 50,000 miles per year.” Mason and his older brother Miles left Indiana to attend Christ School, a boarding school in North Carolina renowned for its stellar academics and competitive basketball program. A few years later, legendary Duke University basketball coach Mike Krzyzewski recruited Mason.
Some athletes are taking care of entire communities of family and friends, sometimes for 10 to 15 years. They have really good intentions but fall into financial hardship because so many people depend on them for support.
The Blue Devils won the 2010 NCAA Men’s National championship during Mason’s first year at Duke. Although Mason considered going professional during his junior year, he stayed in college to complete his degree in psychology. The Brooklyn Nets selected him as the 22nd overall pick of the 2013 NBA Draft.
Know your wealth
As a rookie, Mason learned that it is important to ask questions about one’s wealth. “I remember the first check I got. I thought it was a bonus for playing in the summer league, but it was actually an advance.” Athletes also need to be mindful of fees and taxes. “Between agent negotiations and taxes, $100,000 is really $60,000 net.” Mason credits a serendipitous internship at a wealth management firm with helping him understand key investment concepts and shaping his perspectives on money. “It was a quick education to go from a college stipend to an NBA salary. You have to understand what money means.”
The right mentors
Some NBA players believe it is taboo to discuss money, while others welcome these conversations. “I benefitted from older players who shared both their good experiences and pitfalls. The most valuable lessons came from veteran players who got caught up in Ponzi schemes and scams. I avoided some financial mistakes that I could have easily made early in my career.” Mason has also been inspired by stories of players who grew their wealth through relying on their business acumen. He recalls hearing Junior Bridgeman talk about his experience as a franchisee. Although Junior never made more than $350,000 a year in the NBA, he went on to build a fast food empire, owning over 250 Wendy’s and Chili’s franchises.
I benefitted from older players who shared both their good experiences and pitfalls. The most valuable lessons came from veteran players who got caught up in Ponzi schemes and scams.
The 80/20 rule
After playing two seasons with the Nets, Mason was traded to the Portland Trail Blazers where he was noted for “double-doubles”—achieving double-digit totals in two out of five statistical categories (assists, blocks, points, rebounds and steals) during a single game. Playing for several years in the league gave him perspective on how easy it is for athletes to spend freely. “When you see six-figure checks for five or six years running, it seems like nothing to blow $50,000.” Mason adheres to a disciplined wealth management approach and saves 80% of what he earns. He works with his financial advisor to “invest with the end in mind. I want to afford myself with options. I don’t want to take a job because I need to. You have to realize that a career in sports doesn’t last forever.”
“Dumb money”
Athletes are in the unenviable position of having their compensation made public. The lack of privacy makes them a target for potential investment fraud. “Athletes are sometimes viewed as ‘dumb money.’ People have tried to convince me to invest through a slick sales job.” Mason has a long-standing interest in start-up companies stemming back to his days at Duke, where he heard stories of alumni starting their own businesses. He has cultivated relationships with experts across different industries who serve as constant sounding boards. “I try to be proactive instead of reactive. There’s no way to understand some of these deals on your own.” He also sets a cap on how much he invests in early stage companies. “It’s a calculated risk. The verdict is still out on these companies.”
Money is a privilege
In 2017, the Denver Nuggets offered the then 27-year-old Mason a three-year, $41 million contract. “I look at money as a privilege. It’s truly an advantage to come into this level of wealth early in life.” Mason recommends partnering with financial advisors who understand the unique wealth management challenges and opportunities athletes face. “Don’t just go on your confidence alone in the financial world. Managing your wealth is never going to be your full-time job, but it’s your responsibility to find someone who is really good at it.”
When you see six-figure checks for five or six years running, it seems like nothing to blow $50,000.
Mason believes that making mistakes with money is part of the learning process. “I got a small bonus after my rookie year with the Nets, so I bought a sports car. My teammates clowned me because owning a car is not practical in New York City. The car had all the bells and whistles, but it didn’t matter.” Mason learned an expensive lesson as his car languished in a garage. He also believes that each person’s financial plan should be specific to their own goals and risk tolerance. “I don’t think of investing as a competition. I’m OK if someone else is getting 2% more.”
Finding balance
While the sports world is filled with stories of athletes who have lost their wealth, Mason has observed that being overly generous, rather than bad business deals, is the primary cause. “Some athletes are taking care of entire communities of family and friends, sometimes for 10 to 15 years. They have really good intentions but fall into financial hardship because so many people depend on them for support.”
Mason signed a three-year, $25 million contract with the Detroit Pistons in late 2020, which pushed him over the $50 million mark in earnings. Finding balance and using his wealth to do good is top of mind for him. “How do I manage gifting money? Am I enabling or empowering people?” He shares Warren Buffett’s view that you should give loved ones “enough money so that they would feel they could do anything, but not so much that they could do nothing.”
I’m one injury away from my career ending or I could play until I’m 38. I don’t take anything for granted.
The next chapter
Basketball has always been Mason’s number one priority, but he has been steadily preparing for life after professional sports. His passion for business has led to hosting the Founder Series with Mason Plumlee, an online webcast where he interviews founders of start-ups. Companies addressing needs that have been amplified by the global pandemic are of special interest to Mason. The show has featured start-ups with educational platforms that provide ways for teachers and tutors to connect with their students online. Healthcare is another industry close to his heart, as members of his extended family are frontline healthcare workers.
When Mason wants to learn more about new fields, he takes advantage of being one of only 450 active NBA players, a unique status that opens doors for connections with thought leaders. He is heedful that once professional athletes retire, their access to opportunities can greatly diminish. Mason keeps his perspective trained toward the future, to ensure that the temporary good fortune of his basketball salary will last a lifetime. “I’m one injury away from my career ending or I could play until I’m 38. I don’t take anything for granted.”
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