NFL players, and athletes in general, tend to get into a bit of hot water when it comes to investing the bazillion dollars they make from their contracts. I’m not trying to generalize NFL athletes with a negative generalization, but how many do you know have a degree in finance or business? It’s enough to ruin a player financially – even while they are currently playing football. It’s why guys like Charlie Batch have had to file for bankruptcy over the last several years.
According to a report by the Associate Press, Larry Foote fell victim to a ponzi valet scheme and is filing suit that he was defrauded. What was the price for Foote’s poor investment choice? A mere $400,000. That’s only a couple of game checks, but it’s still a ton of money. I don’t know about you, and it’s not like I’m thumbing my nose at the situation, but it seems like if someone approached me about a valet company and needed over $400,000 to start up I might just question the validity of that company.
Did Foote really not look into the history of the two men involved in the lawsuit? Seriously, these guys need financial advisors handed off to them when they get into the league. Give them a huge pile of money, and they just turn all crazy in the head. Why can’t they do something safe with the cash? Invest in companies that have a proven track record? Where’s the big payoff in startup companies? And if any of these questions seem elementary and very stupid to you – this is why I don’t invest – because I don’t think I’m good at it either. But I know that I probably wouldn’t invest in a startup keychain making company either.
I feel bad for Larry that he had to go through getting schemed. At least he’s lucky enough to be making the dough to cover that kind of loss. There’s a lot of other real life schemes going on out there that just about destroy families.
Excuse me while I go hide some money under my mattress.