Kevin Garnett is suing his accountant for $77m because his accountant helped his financial advisor steal all that money. That’s almost half of his after-tax 22-year earnings! He’s the highest paid NBA player ever. This is exactly why I do what I do – to help the people in our community who have money but don’t have financial literacy.
Here’s the thing: no one (including other players) understand how this happens. Let me break it down
1) Power of attorney: Players give other people the right to handle their money so they don’t have to. Bad idea.
2) Their financial advisor and agent are both connected, who probably also referred their accountant and lawyer. The same network of guys all eating together and getting rich. It’s easy money because no other millionaire in the world would let people blindly manage every aspect of their money.
3) Shell companies: their business managers, agents or financial guys set up shell companies and get these guys to invest and then say the company went under and pocket the $1-10m. Over and over.
4) The accountants and financial guys literally overcharge and run all of their expenses like private jets and cars through the accounts of the athletes. For 20 years.
5) The athlete doesn’t have a financial/business mentor. I’m a tech coach for a lot of guys and noticed they have no one on there team that can look at a financial statement, private company investment or contract FOR FREE. This is imperative. They have coaches for EVERYTHING ELSE!
6) There is no Amber Alert when someone kidnaps these guys money! Red alert should have been sent to the entire current and retired player community across all sports. Warning folks not to do business and what the situation was.
The good news is we are making changes and will try our best to prevent this from happening to anyone else. All athletes and entertainers join us! Send me a message and you are in for free and we will review all of your providers, docs etc. we are already doing it.