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.
Osi’s advice for younger athletes
Osi’s advice for younger athletes
“Football is all we’ve done. We have to set ourselves up to be free and financially independent the rest of our lives after we finish playing. As crazy as it sounds, you have to start planning for life after sports while you're still playing.”
A whole new world
When London-born Osi was 14, he moved from Nigeria to live with his sister Nkem in Auburn, AL. His father had been a successful business owner in Nigeria, and the family enjoyed a very comfortable lifestyle. Things were different in America. Osi and Nkem had little financial resources after government upheaval in Nigeria caused their father's business to take a downturn. Nkem attended college by day and worked the overnight 11 p.m. to 7 a.m. shift at a local restaurant to help pay rent and school fees. "It was an eye-opening experience. I didn't have money, not even lunch money. It was really strange to be in Africa in a good financial situation and then in America with nothing."
A football star is born
Osi discovered his talent for football at Auburn High School. He won an athletic scholarship from Troy University, where he set several school records for tackles and sacks. In 2003, Osi was drafted by the New York Giants. His first NFL contract was $2 million and he took home around $1 million after taxes and fees over a four-year period. It was the first time Osi had any real money. "When I was drafted by the New York Giants, it was a surreal experience to go from literally having nothing to getting everything I ever wanted. It goes pretty fast. Save every penny of the first contract. Most players won't get a second contract."
It goes pretty fast. Save every penny of the first contract. Most players won't get a second contract.
Osi's second NFL contract came in late 2005, when the Giants signed him to a six-year extension for $40 million. His contract guarantee was $15 million, with the balance paid over the duration of the contract, contingent upon him playing all six years. Taxes and his agent's fee meant he netted about half of the $40 million. After playing 10 seasons with the Giants, he signed a two-year contract in 2013 with the Atlanta Falcons for $8.5 million. Osi also had endorsement deals with 5-hour ENERGY, Nike and Verizon Wireless through his marketing team, which took a 15% commission.
Once I retired from football, I wanted the option of never having to work again, unless I chose to.
Among teammates, conversations about money and business ventures were stratified by salary ranges, given the pay disparity among players is significant. Approximately 10% of football players make the big "contract money." The rest receive the league minimum of $510,000 per year. Players who made similar amounts would talk about their investments with each other, but money in general wasn't a big talking point in the locker room.
The 10-year goal
"The average NFL career is really short, around three years. I was hoping to play for 10 years because that’s the benchmark. I was lucky and played 12 seasons. For most of us, the second contract is your life-changing money. Once I retired from football, I wanted the option of never having to work again, unless I chose to."
Set for life
When Osi signed his second NFL contract, he was keen on preserving his wealth. "I wasn't necessarily trying to gain more in the stock market. I was pretty responsible and didn't plan on spending a lot once I retired from playing." However, he did want to maintain the same lifestyle he enjoyed as a professional athlete. Taking care of his immediate family members was also important. "That's the way I was raised. My father is a very generous man and I learned from him."
Although Osi could have played longer, he chose to retire in 2015 because he was financially set for life.
Osi defined his expenses and goals to determine how much he would need to retire. He wasn’t interested in investing in restaurants or clubs because of the high risks involved. He preferred a conservative portfolio of bonds and stocks that he estimated could generate an annual return that would offset his expenses. His plan was to invest for the long term and live off the investment income from his portfolio.
Although Osi could have played longer, he chose to retire in 2015 because he was financially set for life. "My lifestyle hasn't changed. I can still do what I want."
The money pit mansion
Osi has learned from his past investment mistakes, most notably purchasing a home that turned into a substantial cash drain. While living in Atlanta, a hot spot for young athletes and entertainers, Osi would visit friends who all seemed to be living in massive mansions. He decided to buy a home, but a "regular house" wouldn't do. He wanted to impress his friends. Osi purchased one of the biggest houses he could find. It was a massive older house that he bought in foreclosure for $2 million.
"Every single month something else would go wrong, and it was such a big house. It was stupid and pointless. There was no need for me to buy such a large home. I put the house up for sale, but no one wanted to buy it. And then the roof collapsed." The fixer-upper cost Osi an additional $1.5 million, so his total investment amounted to $3.5 million. He finally sold the house for $1.1 million, at a loss of $2.4 million.
A second career in sports journalism
When Osi retired, he didn't have any specific career plans. "I thought I'd just relax, but after I told my wife my plan of not doing anything, she said it was a no-go and I needed to find something to do." Osi's wife, Leila, a former Miss Universe, is finishing up a degree in political science and hopes to work for the United Nations.
Osi and his family relocated to the UK after he stopped playing. During his first week in London, Osi reached out to Mark Waller, an NFL executive he had met almost a decade earlier. The meeting with Mark led Osi to a new career as an NFL pundit for the BBC. "To this day, I still work for the NFL, and being in London has been amazing. It wouldn't have been the same if I hadn't met Mark years before. Mark kept me in mind."
It will be a challenge to strike a balance between giving his children the privileges that come with wealth while ensuring they have the desire to forge their own path.
Although he's able to provide for his children financially in a way that his parents couldn't provide for him, he is aware of the potential downside. "I don't want my kids to think anything will be easy. I want them to work hard and make their own way. Talking to my children about wealth is going to be a tough conversation."
Giving back
Osi's focus on financial planning from day one of his football career has given him the opportunity to help future generations. He wants to support more philanthropic causes in Africa, especially in his home country of Nigeria, where there are ongoing socioeconomic issues. He's endowed scholarships for children from his village for a number of years and wants to find more ways to help people lift themselves out of poverty.
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