By Chris Kidd, Special for USDR
Radio Host Kevin Price, and Chris Kidd, Financial Coach and Contributor on the Price of Business on Business Talk 1110 AM KTEK (on Bloomberg’s home in Houston), interviewed Carlos Dias Jr., the Founder and Managing Partner of MVP Wealth Management Group. On this segment, Carlos and the POB crew discussed the world of professional sports and some advice for rookie pro athletes with their new found wealth.
Kevin Price began the interview by asking Carlos Dias how about his business and how he got into this particular niche. Dias responded, “I have been in the business for about 10 years, and years ago when I was a kid I saw a special on TV on sports agents, and I knew at that time that I wanted to help professional athletes and I thought I would become a sports agent, however that didn’t turn out. I started working in the financial services business, and I saw a lack of education and a lack of transparency, and when I incorporated this company I wanted to bring all those aspects to the table; again, trust, transparency, and that’s what we’ve been doing with professional athletes.”
Chris Kidd commented that there is a huge need for a market like professional athletes. Kidd brought up the recent NFL Draft and said, “It’s always good to catch them early on versus at the end of their career or once they’ve already retired, and they’re saying, ‘Hey I really screwed up, help me!’” Chris then asked Carlos, “What are some things that some of the rookies that are coming in now need to know about handling their new found wealth?” Dias offered, “A couple things they need to really focus on, I think the first one is spending it before they have it. A lot of people on the outside see these big contracts, $25 million, such as the one Jameis Winston just recently got. They don’t really see the intricacies of the math within the contracts. It’s not all up front, they don’t get it all at once.” Carlos Dias also recommends that these athletes save their signing bonuses and avoid “these high interest loans” during the offseason.
A common mistake many professional athletes have made is spending too much and not keeping in mind that the money they are making during the season stops in the offseason, and many have run short on money and taken on debt or even highinterest loans from other players to maintain their lifestyle until next season. Mr. Dias explained, “A lot of times it’s a locker room competition, and if you look at the first round draft pick versus someone in the fifth round, I mean it’s a huge difference. For someone that’s in the fifth round that has a teammate that was drafted in the first round and they’re going head to head in competition with who has the better car or the biggest house, it’s kinda like that saying ‘Keeping up with the Jones.’”
Kevin Price asked about the types of athletes they work with at MVP Wealth Management Group. Carlos said, “We started off working with retired athletes, and I actually came from a background of working with pre-retirees and retirees. And I take that approach into the athletes because of the short shelf-life they have.” MVP has clients from multiple sports including football, basketball, and recently MLS soccer. On the topic of soccer, Carlos said, “It’s kinda like years ago where we would say that people living in the North would retire to the South, Florida. It’s the same thing these European soccer players are retiring to America to play in the MLS.”