Money may not grow on trees, but lately it seems like it’s sprouting from the seemingly limitless bank accounts of collegiate athletes, young musicians, and rising stars of the entertainment industry. Finding wealth at a young age may seem like a godsend. But when a 22-year-old rookie signs a multi-million-dollar contract, they may not realize just how much limitation comes with the career. Professional sports and entertainment professions don’t last forever. In fact, they’re almost always front-loaded, favoring the young. And the stats show that, far too often, young stars trust that their big payday will last into perpetuity. This couldn’t be farther from the truth. It’s why we’ve started JohnHart Sports and Entertainment, a division focused on helping young celebrities build secure futures through savvy investment.
Startling Stats
Anyone who makes it into the NFL likely feels like they’re set for life. But a National Bureau of Economic Research study published in 2015 revealed that, of the nearly 2,000 NFL players evaluated, 15.7% filed for bankruptcy within the first 12 years of their retirement. That’s roughly one in six players. And while that statistic is at the upper end of what similarly-aged Americans face, NFL players often boast career earnings averaging over $3 million. It’s apparent that there are some money management issues happening behind the scenes.
Earlier, in 2009, Sports Illustrated published an article that claimed that the vast majority of NFL and NBA retirees face critical financial distress within just a few years of leaving the field or court. But if you think this is a limitation unique to a professional sports career, think again. Musicians and younger entertainers often fall into similar pitfalls: a rapidly inflating lifestyle, bad financial guidance, and blowing big money on fleeting pleasures. It all comes down to a frequency of spending that just can’t be sustained.
The Problem with Early Fame and Fortune
It doesn’t help that the average career in sports lasts a mere four to five years. Finding lasting security in this brief window is a tall order. Often, this is because these rising stars rely on poor guidance and sink their money into rapidly depreciating luxury purchases and short-term spending that evaporates without any trace. Imagine if these young athletes and entertainers had proper guidance into building a reliable future through investing in assets that actually build equity over time. It’s the mission at the heart of JohnHart Sports and Entertainment.
JohnHart CEO and founder Harout Keuroghlian breaks down the problem that inspired the creation of a division solely focused on helping young athletes and entertainers make the most of their earnings, stating, “Championships, awards, and sold-out arenas don’t guarantee financial security. Many athletes and entertainers achieve success while they’re still incredibly young, long before they’ve had the experience to navigate the money, the attention, and the endless voices pulling them in every direction. They’re often surrounded by distractions, quick money, luxury, and people offering advice that serves themselves more than the athlete or entertainer. Too often, success is spent instead of invested. The greatest investment an athlete or entertainer will ever make isn’t in their career. It’s in what that career makes possible.”
“JohnHart Sports and Entertainment was built to help elite performers protect what they’ve earned and transform extraordinary talent into generational wealth,’ clarifies Harout. “Through real estate, strategic investing, and trusted guidance, our mission is to ensure that a career measured in years creates a legacy measured in generations. A career has a prime. The wealth it creates shouldn’t.”
Real Estate Investment Affords Security
Real estate has long been touted as one of (if not the most) reliable investments one can make. It’s a durable, appreciating asset that generates income long after the final goal or the credits roll.
(1.) Real Estate is Tangible and Stable
A collection of cars may be flashy, but each one depreciates the second it leaves the lot. Meanwhile, property typically appreciates with time, and can generate present income through renting.
(2.) Real Estate Can Offer Unique Tax Advantages
The right real estate professional can help offset tax burdens through 1031 exchanges, mortgage interest deductions, and depreciation. With young athletes and entertainers susceptible to tax headaches from multi-state and multi-jurisdiction earnings, the ability to navigate tax advantages is valuable beyond measure.
(3.) An Enduring Income Stream
The games and tours will eventually come to an end. By comparison, real estate can feel like it’s forever. Depreciating luxury goods just can’t compete.
(4.) Peak Earning Requires Structure
Early investment in real estate can help young professionals take advantage of a compounding effect that can help insulate the financial shortcomings of a truncated career.
Committing to the Right Play
Earning the most won’t necessarily protect young athletes and entertainers from financial hardship down the road. Some of history’s most well-paid stars have ended up in considerable debt. But this is often because they viewed their funds as limitless. Those who take the time to recognize the power of building something that lasts beyond the spotlight are the ones who enjoy comfort and stability well into the future.
JohnHart Sports and Entertainment is devoted to helping young athletes and entertainers turn their brief but sizable paydays into long-term, lucrative portfolios. With our guidance, creative strategy, and time-tested expertise, we artfully yet discreetly help young celebrities to make reliable, informed, long-term investment decisions that endure long beyond the roar of the crowd. No matter how much money you make, the window afforded us to build wealth always feels shorter than we’d like. Now is the time to get serious about the future. If you’re interested in learning how real estate can anchor your financial future, reach out to JohnHart Sports and Entertainment to get started.
With a brand that says as much as JohnHart’s, Senior Copywriter Seth Styles never finds himself at a loss for words. Responsible for maintaining the voice of the company, he spends each day drafting marketing materials, blogs, bios, and agent resources that speak from the company’s collective mind and Hart… errr, heart.
Having spent over a decade in creative roles across a variety of industries, Seth brings with him vast experience in SEO practices, digital marketing, and all manner of professional writing with particular strength in blogging, content creation, and brand building. Gratitude, passion, and sincerity remain core tenets of his unwavering work ethic. The landscape of the industry changes daily, paralleling JohnHart’s efforts to {re}define real estate, but Seth works to maintain the company’s consistent message while offering both agents and clients a new echelon of service.
When not preserving the JohnHart essence in stirring copy, Seth puts his efforts into writing and illustrating an ongoing series entitled The Death of Romance. In addition, he adores spending quality time with his girlfriend and Romeo (his long-haired chihuahua mix), watching ‘70s and ‘80s horror movies, and reading (with a particular penchant for Victorian horror novels and authors Yukio Mishima and Bret Easton Ellis). He also occasionally records music as the vocalist and songwriter for his glam rock band, Peppermint Pumpkin.
