The following is an op-ed by Russell Okung, a Pro-Bowl Left Tackle in the NFL for the Denver Broncos and an investor in numerous technology companies, including Andela, Matcherino, Omni, and Shyft. Okung is the co-founder of the GREATER Foundation, which seeks to educate and mentor young people of color to succeed in the tech industry. He is also an Executive MBA student at the University of Miami and a member of the advisory board for the NFL Players Association’s OneTeam Collective, the first athlete-driven accelerator that will help startup companies obtain rights to sports-related intellectual property in exchange for equity.
For decades, athletes have used the money they earned on the field to invest in projects off it, with plans to achieve financial security for life after the game. In the past, these investments were typically in steakhouses, car dealerships, or nightclubs; businesses in which athletes thought they could use their fame to directly generate business and incur large profits. While some athletes – take Walt Frazier and John Elway – have been extremely successful, many have learned the hard way that these can be fickle and risky investments. Unfortunately, it has also created a stereotype that athletes are unsophisticated in business and prone to unwise investments.
Now, some people are warning that venture capital funds and tech startups are the new steakhouses; money pits luring naïve athletes. Sure, some athletes have lost large sums of money as a result of reckless investments and typically, when this happens, it generates a lot of media attention because it reinforces the aforementioned stereotype. But this narrative ignores that investment failure is not the exclusive domain of athletes. It is, by its nature, a risky endeavor and all investors have the same obligation to be diligent, to self-educate and to consult industry and investment experts.
Everyone, not just athletes, needs to do their homework before investing. And athletes are just as able as anyone to do so.
The tech sector is a burgeoning industry and an exciting sector for investment for all. Making the claim that athletes will end up wasting their money because they may not have the time or intellectual fortitude to do their due diligence is unfounded. Athletes shouldn’t have to give up a paycheck from the playing field to try and earn one off it. Yes, I know it isn’t easy. But, we can do both.
Since the NFL doesn’t have a minor-league system the way other major league sports do, many NFL players play college football and earn a college education through the process. There is a popular misconception that professional athletes aren’t educated, and don’t have the credentials to support a career outside of the professional sports arena.
While some players are devastated by financial bankruptcy post-career many of us believe that education is paramount. Preparation for a career after football is crucial. We can’t all be Jeff Saturday or Michael Strahan, enjoying long, illustrious careers and then landing in top broadcasting positions. Most of us only last three years in the league and playing a violent and physically demanding sport leaves scars on the body and mind that remain well after we leave the gridiron. It is the shortest average career length of any major sport and not nearly long enough for a player to make enough money to last a lifetime
Personally, I am working toward my MBA at the University of Miami in the off-season, and taking advantage of my platform to reach out to experts in the Tech industry, where my “geek passion” thrives.
Now more than ever, it is important for athletes to take ownership of their future off the field to avoid being pulled in the wrong direction. By representing myself in free agency and playing a large role in my foundation and the direction of my investments I hope to set an example for athletes who want to take control of their lives off the field.