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Advising Athletes SEPTEMBER 2014
1
An exclusive interview with NCAA Hall of Fame football
coach Phillip Fulmer & Back Porch Vista CEO Mike West
THE ART OF
Advising
Athletes
BPV Special Report
October 2014
Advising Athletes SEPTEMBER 2014
1
To
Advise
Athletes...
Image courtesy of the University of Tennessee Athletics Department
Advising Athletes OCTOBER 2014
1Image courtesy of the University of Tennessee Athletics Department
Think
Like
a Coach.
In this exclusive interview, NCAA Hall
of Fame football coach Phillip Fulmer
and Back Porch CEO discuss what
it takes to manage money for a most
uncommon client— the professional
athlete.
Advising Athletes OCTOBER 2014
3
Wadvisor-client relationship may represent an ideal professional situa-
tion—after all, what advisor doesn’t want a small book of high-profile,
high net worth clients? But the world of sports advising is a far cry from
popular Hollywood portrayals like Jerry Maguire and Moneyball.
	 To set the record straight, Coach Phillip Fulmer and BPV CEO
Mike West, former owner of Synergy Sports Management, recently sat
down to discuss the intricacies and challenges of working with affluent
athletes. Both men have decades of firsthand experience with athletics
and professional investing: In 2009, Coach Fulmer joined West in a new
career as a financial manager in what would later become Back Porch
Vista, a Knoxville, Tennessee-based family of mutual funds aimed at
providing American families access to the best investment strategies. In
the following interview, both men discuss the mindset of professional
athletes and ways to improve relations as a financial advisor.
			 here the worlds
			 of finance and
		 sportsdom collide, a
	 number of savvy advisors
have carved a comfortable
niche managing professional
athletes’ wealth. For some, this
Advising Athletes SEPTEMBER 2014Advising Athletes SEPTEMBER 2014
THANK YOU BOTH for sitting down
today to discuss this topic—not many
people have such a close relationship
with both athletics and finance. Can
you start by giving a bit of personal
background on the subject of athletes
and money management?Q:
4
PHILLIP FULMER: Absolutely. Just to start, managing athletes’ money after
they have left college was a concern of mine for the whole time I was an assis-
tant and head coach. There are so many bad things and bad people that they
can get involved with… I’ve seen everything and heard the horror stories of
guys making millions of dollars and finishing their career with nothing. I took
it to heart when I became a head coach to try to educate these young men
prior to them having access to that kind of wealth. Fortunately, a lot of my
guys have listened and come out of college and avoided the sexiness of what
could be out there: the big cars and the get rich fast investments that never
work out. Many have taken the conservative approach to find an advisor that
is going to help them invest their dollars in solid investments, be it public
or private, that turn out to set them up for the rest of their lives. Because
Advising Athletes OCTOBER 2014
5
football is a short lived profession, as most athletic careers are, there will
come a time these young men want to become involved in business or to be
part of managing their own portfolio. The more educated they are and the
better their advisor, the better the opportunity they have to become success-
ful later in life. I’ve seen firsthand how good it can be, and I’ve seen first-
hand how bad it can be.
MIKE WEST: Thanks, Coach—you’re a pretty tough act to follow [laugh-
ing]. As a former football player in college, I spent a lot of time with other
athletes. I really got to know the players, the sport itself, and the culture
that exists both on and off the field. A little over a decade ago, I purchased
my own sports agency because I thought my history in athletics and my
financial focus would help athletes make better financial decisions. There
is a statistic out there on the Sports Illustrated website that says that 75%
of professional football players are
bankrupt within 4 years of retiring.1
So it is a big problem. A lot of peo-
ple have tried to solve it. But coming
from financial services as a former
collegiate athlete, I thought I had a
unique perspective on how to ap-
proach the issue.
1
According to Sports
Illustrated, 78% of
former NFL players
and 60% of former
NBA players go
bankrupt within 5
years of retiring.
Advising Athletes SEPTEMBER 2014
6
Q:
EACH OF YOU MENTIONED the
alarming number of players who lose
their wealth almost immediately af-
ter retiring. That’s a lot more money
than many see in their entire lifetime.
What’s causing the problem?
MW: Unfortunately, most athletes do not have a lot of experience with finan-
cial issues. These guys are twenty-two years old when they are given millions
of dollars. Chances are, they don’t have a set of friends and family members
who have experience in finance either, so often they don’t even know what
help to look for. They are easily influenced by things that appear to be sexy
and easily influenced by things that seem easy and cool. In reality, investing
is not sexy or cool. So their decision-making process leads them towards the
wrong kind of person to work with. At the beginning, they tend to make poor
decisions because they are overwhelmed. Can you imagine being twenty-two
years old and someone giving you a twenty million dollar contract? Now
imagine everyone in your family wanting you to buy them a house, a car. In
reality, it is very difficult to take a step back and get clarity in that situation.
Advising Athletes OCTOBER 2014
7
It’s like winning the lottery. People
who win the lottery tend to end up
bankrupt.2
PF: I agree with that, but I would
also add that these players don’t have
their minds on managing their mon-
ey in the first place. You read about
all the money that these athletes
have made, but that’s only if they’ve
already made the team. There is little
guarantee that a player will make
it onto a professional team, so that
player’s focus should be on trying to get to the next level—his focus should be
on what he can control. The money is always a distraction, whether it be the
parties or trying to manage your own wealth. As an athlete, you should let the
financial guy handle your finances and manage yourself.
2
According to the
National Endowment
for Financial Education,
70% of people who
receive large winnings
(lotteries, divorce
settlements, inheritances)
lose their money after
several years.
Advising Athletes SEPTEMBER 2014Advising Athletes SEPTEMBER 2014
8
Q:
MW: Here’s one way to think about it:
Someone works their whole life, gets to
be sixty years old and has reached the
end of his or her earning capacity. This
person is still alive and needs to preserve
their wealth until they die. That’s why
older people take on less risky invest-
ments. In a strange way, the same holds
true for athletes. An athlete is going to
earn his entire fortune in his twenties.
And the ability to earn millions of dol-
lars to fund the lifestyle he has become
used to is substantially reduced after
he retires from sports. So, that athlete
WOULD YOU MIND digging a little bit
deeper into the mindset of profession-
al athletes, from the perspective of an
advisor looking to work with them?
“Can you imagine
being 22 years old and
someone giving you
a 20 million dollar
contract? Now imagine
everyone in your family
wanting you to buy
them a car.”
Mike West
Advising Athletes SEPTEMBER 2014
9
Fulmer and West, BPV headquarters, October 2014
needs to act like he is reaching the end of his earning years. Often, athletes go
out and build lifestyles around multimillion dollar incomes and then those
incomes are gone and they are bankrupt. It requires discipline to preserve
wealth. Most athletes do not have that discipline. So it is an advisor’s job to
ensure that the athlete can fund himself forever. I know athletes who have
done it really well. There was a guy who played at Tennessee right after me
and was in the NFL for eight or nine years. Now, he is retired but has enough
money so that he will never have to work. He was conservative.
Advising Athletes SEPTEMBER 2014
10
PF: The advisor has to be the bad guy. Of course it’s difficult for anyone
to tell their immediate or even extended family, “No, I can’t do that.” And
certainly, you should be able to help in places that are necessary, such as a
mother or father or grandparent. After all, somebody helped you get to that
place. We all feel obligated to that person, but that person doesn’t extend to
everyone in the family. You can’t do that. There are lots of ways to help with-
out breaking the bank and endangering your future. That’s where the advisor
comes in and needs to understand the landscape, figure it out, and help the
young man make decisions.
	 These guys need guidance and support because not very many of them
come from affluent families or from parents who can help them financially.
They need to think of the advisor like a doctor. When it comes to your mon-
ey or your health you don’t want to shortchange finding the best. And to me,
that’s what they need to do.
Q:
IT ALSO SEEMS THAT many pro-
fessional athletes’ financial problems
stem from mismanaged personal rela-
tionships—whether it’s buying extrav-
agantly for family members or being
forced into poor financial investments
with friends. How would an advisor
begin to address these issues?
Advising Athletes SEPTEMBER 2014
11
MW: I agree one hundred percent.
Advisors absolutely have to address
the personal problems of the athlete.
A part of that job is building trust
with the athlete so the athlete knows
that you have their best interests in
mind. Then it is about making de-
cisions on behalf of the athlete that
drive him to where he needs to be. Sometimes the advisor is not really liked
by the family because they are saying no to that fifth house because it’s not a
good idea.
	 It should be said (and advisors need to understand this) that they need
to be willing to decide who is a good client and who is a bad client, and they
need to be able to fire the bad clients. Some people just won’t listen, and if
Image courtesy of University of Tennessee Athletics Department
“The advisor has to be
the bad guy. You have
to be able to say, ‘No,
that’s a bad idea.’”
Phillip Fulmer
Advising Athletes OCTOBER 2014
12
they are paying you and won’t listen to you, are you really bringing any value
to them? Unfortunately, some people are going to earn five million dollars
and piss it away. They don’t need an advisor, they need an agent.
PF: I think there are two different conversations, one from the perspective
of the athlete looking for an advisor, and one in terms of the advisor looking
for the athlete. To me, they should be looking for the same thing in the end.
A good advisor is not going to want to get involved with someone who won’t
listen. A good advisor will not want to be paid for his expertise if it isn’t being
used. In the end it’s going to be an unsuccessful and damaging relationship.
Damaging, reputation-wise, and damaging for the athlete’s success.
	 Some advisors really take seriously the well-being of the athlete and
the management of not just his money but his time and efforts and family.
The good ones try to make the guy’s life successful. These advisors are good
mentors. They have to have the ability to communicate and say no and to say,
“That’s a bad idea.” That’s what the role of the financial advisor has to be. If
advisors make the wrong things important (like the bling, the parties, and the
boats), they are just using athletes and directing them down the wrong path.
Advising Athletes
13
SO MUCH DEPENDS on an athlete
trusting an advisor completely. How
can an advisor go about building that
kind of trust?
Q:
MW: These athletes go throughout
their entire lives having everyone
tell them how great they are. When
they look back twenty years later,
typically the person they remember,
respect, and value is their coach. The
reason they do is because their coach
didn’t tell them how great they were.
Their coach told them what they
needed to hear. He told them the truth, and they knew they could trust him.
So an advisor needs to take on that role as a financial coach. Which means if
they are doing something stupid, you have to tell them. Your coach in college
yells at you. Advisors often times are intimidated and end up being just like
everyone else, and ultimately, the athlete doesn’t trust them. Athletes aren’t
stupid, and they know when someone is telling them something just to be a
“Athletes know when
someone is telling them
something just to be a
part of the show. You
can’t be that.”
Mike West
Advising Athletes OCTOBER 2014
14
part of the show. You can’t be that. You have to sit down with the athlete and
say, “I don’t care that you’re famous. I don’t care that you catch touchdowns.
You are paying me to be your financial advisor, and I’m going to do that. If
you don’t like what I have to say then we can debate it, but at the end of the
day, I’m not going to say what you want to hear so that I can represent you.”
The great advisors are the ones who become their financial coach, their men-
tor, and tell them the truth. Trust will come from telling them the truth.
PF: I think the advisor better be trustworthy from the beginning. That’s what
athletes are looking for – somebody who has experience and already had some
success. They don’t want to be the first guy with an untested advisor. The ad-
visor needs to be the coach or the father figure or the partner in business. It’s
that kind of attitude. They are sharing a partnership.
Advising Athletes
15
MW: Well it’s hard. I would suggest that they do not try. Lots of times ad-
visors think that the way to deal with athletes is to run with them. Go out
to the clubs and do all that kind of stuff. The advisor should be the one part
of an athlete’s life that is different than everything else. They should be the
safe haven, a place to go to get sound advice and not participate in all that.
Lots of times, advisors want to represent athletes because they want to go to
games, they want to be Jerry Maguire, and they want to be cool. That is not
the right approach. The athlete needs somebody who is their counselor and
who will tell them no. Someone who will say, “That’s not a good thing.”
Q:
THE FINANCIAL WORLD can be
pretty straight-laced at times, how
should an advisor bridge the culture
gap between finance and sports?
Advising Athletes OCTOBER 2014
16
PF: I think in both sports and finance
there are fundamental principles that
you need to be successful. In the end,
the financial piece is what the advisor
and athlete have in common. There-
fore, the athlete needs to yield to the
advisor. From that standpoint, it goes
back to trust, past experience, and
quality time spent educating. It’s not
good enough to say, “You don’t have
to understand this, just do it.” That’s not a good way to approach things. A
guy that is conscientious enough to trust you with his money, you should ed-
ucate him. You should take time to help him understand, whether it be how
to get a loan or how tax structures work.
“A guy that is
conscientious enough
to trust you with his
money, you should
educate him.”
Phillip Fulmer
Advising Athletes
17
Q:
FOR ANY ADVISORS out there look-
ing to start working with athletes, how
do you suggest approaching them?
PF: Athletes typically trust their coach to guide them, but that’s not always
the case. As an athlete, you have an opportunity to interview lots of people
in your last year of college. The NFL also has lists of people who have been
advisors to players for years. Then there are seminars where advisors come
and present, and at any point in time, players can sit down and have meetings
with financial advisors. Often times, it’s another teammate that guides them.
Hopefully, they will pick really solid and already successful former teammates
who can guide.
	 All that to say, athletes are extremely well-targeted. It’s well-known who
is going to be a high draft choice, and therefore who is going to have access
to a lot of money. From my perspective the question is: How does the athlete
find an advisor who has been successful with athletes? I’m pleased with what
we have been able to accomplish at Tennessee by setting our players up with
good advisor relationships.
Advising Athletes OCTOBER 2014
18
MW: It is difficult to go direct to the player. From my experience, the best
way to build a business in this niche is by getting that first respected client
who people believe in. And use that person as a reference to more players. A
lot of times the athlete doesn’t want to refer you because they want you to
themselves. What has been notorious in this industry is the rarity of having a
deep practice. It is hard to build a deep book doing this. You have to be com-
mitted to the long haul. It takes time. Instead of twenty firms with hundreds
of athletes, there are hundreds of firms with a couple of athletes. It’s hard. I
would say it’s hard to pursue this as a business, but then again I did myself.
Advising Athletes OCTOBER 2014
19
Phillip E. Fulmer
SENIOR PARTNER, BACK PORCH VISTA
Among the top five winningest coaches in college
football history, Phillip Fulmer now loans his
interpersonal charisma, superb leadership skills,
and peerless discrimination to business development
at BPV Capital Management, LLC.
Michael West
SENIOR PARTNER AND CEO, BACK PORCH VISTA
Mike West has years of entrepreneurial and executive
management experience with a background in finan-
cial management, strategic planning, mergers and
acquisitions and business development. He brings his
knowledge in these fields to his role as Senior Partner
and CEO of BPV Capital Management, LLC.
Meet Coach Fulmer
Interested in a meeting with Coach Fulmer? Click
the link and we will notify you of his next event in
your area.
SEPTEMBER 2014 Advising Athletes
2
Advising Athletes SEPTEMBER 2014
2
CONTACT US:
865.243.8000 Local
877.819.2188 Toll Free
9202 South Northshore Drive,
Suite 300
Knoxville, Tennessee 37922
www.backporchvista.com
BPV Capital Management is built on the simple belief that all investors deserve the ability to retire well. In our view, every individual should have
the ability to achieve his or her own back porch vista through careful planning and saving. In our evolution from family office, to advisory firm,
to manager of a family of funds, we’ve sat in every chair at the table, which means that we have a unique understanding of the challenges each
member of the BPV family faces. For more information on Back Porch Vista, fill out the form below or call 877-819-2188.
All game day images courtesy of the University of Tennessee Athletics Department

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Advisor Niche: How to Manage Professional Athletes

  • 1. Advising Athletes SEPTEMBER 2014 1 An exclusive interview with NCAA Hall of Fame football coach Phillip Fulmer & Back Porch Vista CEO Mike West THE ART OF Advising Athletes BPV Special Report October 2014
  • 2. Advising Athletes SEPTEMBER 2014 1 To Advise Athletes... Image courtesy of the University of Tennessee Athletics Department
  • 3. Advising Athletes OCTOBER 2014 1Image courtesy of the University of Tennessee Athletics Department Think Like a Coach. In this exclusive interview, NCAA Hall of Fame football coach Phillip Fulmer and Back Porch CEO discuss what it takes to manage money for a most uncommon client— the professional athlete.
  • 4. Advising Athletes OCTOBER 2014 3 Wadvisor-client relationship may represent an ideal professional situa- tion—after all, what advisor doesn’t want a small book of high-profile, high net worth clients? But the world of sports advising is a far cry from popular Hollywood portrayals like Jerry Maguire and Moneyball. To set the record straight, Coach Phillip Fulmer and BPV CEO Mike West, former owner of Synergy Sports Management, recently sat down to discuss the intricacies and challenges of working with affluent athletes. Both men have decades of firsthand experience with athletics and professional investing: In 2009, Coach Fulmer joined West in a new career as a financial manager in what would later become Back Porch Vista, a Knoxville, Tennessee-based family of mutual funds aimed at providing American families access to the best investment strategies. In the following interview, both men discuss the mindset of professional athletes and ways to improve relations as a financial advisor. here the worlds of finance and sportsdom collide, a number of savvy advisors have carved a comfortable niche managing professional athletes’ wealth. For some, this
  • 5. Advising Athletes SEPTEMBER 2014Advising Athletes SEPTEMBER 2014 THANK YOU BOTH for sitting down today to discuss this topic—not many people have such a close relationship with both athletics and finance. Can you start by giving a bit of personal background on the subject of athletes and money management?Q: 4 PHILLIP FULMER: Absolutely. Just to start, managing athletes’ money after they have left college was a concern of mine for the whole time I was an assis- tant and head coach. There are so many bad things and bad people that they can get involved with… I’ve seen everything and heard the horror stories of guys making millions of dollars and finishing their career with nothing. I took it to heart when I became a head coach to try to educate these young men prior to them having access to that kind of wealth. Fortunately, a lot of my guys have listened and come out of college and avoided the sexiness of what could be out there: the big cars and the get rich fast investments that never work out. Many have taken the conservative approach to find an advisor that is going to help them invest their dollars in solid investments, be it public or private, that turn out to set them up for the rest of their lives. Because
  • 6. Advising Athletes OCTOBER 2014 5 football is a short lived profession, as most athletic careers are, there will come a time these young men want to become involved in business or to be part of managing their own portfolio. The more educated they are and the better their advisor, the better the opportunity they have to become success- ful later in life. I’ve seen firsthand how good it can be, and I’ve seen first- hand how bad it can be. MIKE WEST: Thanks, Coach—you’re a pretty tough act to follow [laugh- ing]. As a former football player in college, I spent a lot of time with other athletes. I really got to know the players, the sport itself, and the culture that exists both on and off the field. A little over a decade ago, I purchased my own sports agency because I thought my history in athletics and my financial focus would help athletes make better financial decisions. There is a statistic out there on the Sports Illustrated website that says that 75% of professional football players are bankrupt within 4 years of retiring.1 So it is a big problem. A lot of peo- ple have tried to solve it. But coming from financial services as a former collegiate athlete, I thought I had a unique perspective on how to ap- proach the issue. 1 According to Sports Illustrated, 78% of former NFL players and 60% of former NBA players go bankrupt within 5 years of retiring.
  • 7. Advising Athletes SEPTEMBER 2014 6 Q: EACH OF YOU MENTIONED the alarming number of players who lose their wealth almost immediately af- ter retiring. That’s a lot more money than many see in their entire lifetime. What’s causing the problem? MW: Unfortunately, most athletes do not have a lot of experience with finan- cial issues. These guys are twenty-two years old when they are given millions of dollars. Chances are, they don’t have a set of friends and family members who have experience in finance either, so often they don’t even know what help to look for. They are easily influenced by things that appear to be sexy and easily influenced by things that seem easy and cool. In reality, investing is not sexy or cool. So their decision-making process leads them towards the wrong kind of person to work with. At the beginning, they tend to make poor decisions because they are overwhelmed. Can you imagine being twenty-two years old and someone giving you a twenty million dollar contract? Now imagine everyone in your family wanting you to buy them a house, a car. In reality, it is very difficult to take a step back and get clarity in that situation.
  • 8. Advising Athletes OCTOBER 2014 7 It’s like winning the lottery. People who win the lottery tend to end up bankrupt.2 PF: I agree with that, but I would also add that these players don’t have their minds on managing their mon- ey in the first place. You read about all the money that these athletes have made, but that’s only if they’ve already made the team. There is little guarantee that a player will make it onto a professional team, so that player’s focus should be on trying to get to the next level—his focus should be on what he can control. The money is always a distraction, whether it be the parties or trying to manage your own wealth. As an athlete, you should let the financial guy handle your finances and manage yourself. 2 According to the National Endowment for Financial Education, 70% of people who receive large winnings (lotteries, divorce settlements, inheritances) lose their money after several years.
  • 9. Advising Athletes SEPTEMBER 2014Advising Athletes SEPTEMBER 2014 8 Q: MW: Here’s one way to think about it: Someone works their whole life, gets to be sixty years old and has reached the end of his or her earning capacity. This person is still alive and needs to preserve their wealth until they die. That’s why older people take on less risky invest- ments. In a strange way, the same holds true for athletes. An athlete is going to earn his entire fortune in his twenties. And the ability to earn millions of dol- lars to fund the lifestyle he has become used to is substantially reduced after he retires from sports. So, that athlete WOULD YOU MIND digging a little bit deeper into the mindset of profession- al athletes, from the perspective of an advisor looking to work with them? “Can you imagine being 22 years old and someone giving you a 20 million dollar contract? Now imagine everyone in your family wanting you to buy them a car.” Mike West
  • 10. Advising Athletes SEPTEMBER 2014 9 Fulmer and West, BPV headquarters, October 2014 needs to act like he is reaching the end of his earning years. Often, athletes go out and build lifestyles around multimillion dollar incomes and then those incomes are gone and they are bankrupt. It requires discipline to preserve wealth. Most athletes do not have that discipline. So it is an advisor’s job to ensure that the athlete can fund himself forever. I know athletes who have done it really well. There was a guy who played at Tennessee right after me and was in the NFL for eight or nine years. Now, he is retired but has enough money so that he will never have to work. He was conservative.
  • 11. Advising Athletes SEPTEMBER 2014 10 PF: The advisor has to be the bad guy. Of course it’s difficult for anyone to tell their immediate or even extended family, “No, I can’t do that.” And certainly, you should be able to help in places that are necessary, such as a mother or father or grandparent. After all, somebody helped you get to that place. We all feel obligated to that person, but that person doesn’t extend to everyone in the family. You can’t do that. There are lots of ways to help with- out breaking the bank and endangering your future. That’s where the advisor comes in and needs to understand the landscape, figure it out, and help the young man make decisions. These guys need guidance and support because not very many of them come from affluent families or from parents who can help them financially. They need to think of the advisor like a doctor. When it comes to your mon- ey or your health you don’t want to shortchange finding the best. And to me, that’s what they need to do. Q: IT ALSO SEEMS THAT many pro- fessional athletes’ financial problems stem from mismanaged personal rela- tionships—whether it’s buying extrav- agantly for family members or being forced into poor financial investments with friends. How would an advisor begin to address these issues?
  • 12. Advising Athletes SEPTEMBER 2014 11 MW: I agree one hundred percent. Advisors absolutely have to address the personal problems of the athlete. A part of that job is building trust with the athlete so the athlete knows that you have their best interests in mind. Then it is about making de- cisions on behalf of the athlete that drive him to where he needs to be. Sometimes the advisor is not really liked by the family because they are saying no to that fifth house because it’s not a good idea. It should be said (and advisors need to understand this) that they need to be willing to decide who is a good client and who is a bad client, and they need to be able to fire the bad clients. Some people just won’t listen, and if Image courtesy of University of Tennessee Athletics Department “The advisor has to be the bad guy. You have to be able to say, ‘No, that’s a bad idea.’” Phillip Fulmer
  • 13. Advising Athletes OCTOBER 2014 12 they are paying you and won’t listen to you, are you really bringing any value to them? Unfortunately, some people are going to earn five million dollars and piss it away. They don’t need an advisor, they need an agent. PF: I think there are two different conversations, one from the perspective of the athlete looking for an advisor, and one in terms of the advisor looking for the athlete. To me, they should be looking for the same thing in the end. A good advisor is not going to want to get involved with someone who won’t listen. A good advisor will not want to be paid for his expertise if it isn’t being used. In the end it’s going to be an unsuccessful and damaging relationship. Damaging, reputation-wise, and damaging for the athlete’s success. Some advisors really take seriously the well-being of the athlete and the management of not just his money but his time and efforts and family. The good ones try to make the guy’s life successful. These advisors are good mentors. They have to have the ability to communicate and say no and to say, “That’s a bad idea.” That’s what the role of the financial advisor has to be. If advisors make the wrong things important (like the bling, the parties, and the boats), they are just using athletes and directing them down the wrong path.
  • 14. Advising Athletes 13 SO MUCH DEPENDS on an athlete trusting an advisor completely. How can an advisor go about building that kind of trust? Q: MW: These athletes go throughout their entire lives having everyone tell them how great they are. When they look back twenty years later, typically the person they remember, respect, and value is their coach. The reason they do is because their coach didn’t tell them how great they were. Their coach told them what they needed to hear. He told them the truth, and they knew they could trust him. So an advisor needs to take on that role as a financial coach. Which means if they are doing something stupid, you have to tell them. Your coach in college yells at you. Advisors often times are intimidated and end up being just like everyone else, and ultimately, the athlete doesn’t trust them. Athletes aren’t stupid, and they know when someone is telling them something just to be a “Athletes know when someone is telling them something just to be a part of the show. You can’t be that.” Mike West
  • 15. Advising Athletes OCTOBER 2014 14 part of the show. You can’t be that. You have to sit down with the athlete and say, “I don’t care that you’re famous. I don’t care that you catch touchdowns. You are paying me to be your financial advisor, and I’m going to do that. If you don’t like what I have to say then we can debate it, but at the end of the day, I’m not going to say what you want to hear so that I can represent you.” The great advisors are the ones who become their financial coach, their men- tor, and tell them the truth. Trust will come from telling them the truth. PF: I think the advisor better be trustworthy from the beginning. That’s what athletes are looking for – somebody who has experience and already had some success. They don’t want to be the first guy with an untested advisor. The ad- visor needs to be the coach or the father figure or the partner in business. It’s that kind of attitude. They are sharing a partnership.
  • 16. Advising Athletes 15 MW: Well it’s hard. I would suggest that they do not try. Lots of times ad- visors think that the way to deal with athletes is to run with them. Go out to the clubs and do all that kind of stuff. The advisor should be the one part of an athlete’s life that is different than everything else. They should be the safe haven, a place to go to get sound advice and not participate in all that. Lots of times, advisors want to represent athletes because they want to go to games, they want to be Jerry Maguire, and they want to be cool. That is not the right approach. The athlete needs somebody who is their counselor and who will tell them no. Someone who will say, “That’s not a good thing.” Q: THE FINANCIAL WORLD can be pretty straight-laced at times, how should an advisor bridge the culture gap between finance and sports?
  • 17. Advising Athletes OCTOBER 2014 16 PF: I think in both sports and finance there are fundamental principles that you need to be successful. In the end, the financial piece is what the advisor and athlete have in common. There- fore, the athlete needs to yield to the advisor. From that standpoint, it goes back to trust, past experience, and quality time spent educating. It’s not good enough to say, “You don’t have to understand this, just do it.” That’s not a good way to approach things. A guy that is conscientious enough to trust you with his money, you should ed- ucate him. You should take time to help him understand, whether it be how to get a loan or how tax structures work. “A guy that is conscientious enough to trust you with his money, you should educate him.” Phillip Fulmer
  • 18. Advising Athletes 17 Q: FOR ANY ADVISORS out there look- ing to start working with athletes, how do you suggest approaching them? PF: Athletes typically trust their coach to guide them, but that’s not always the case. As an athlete, you have an opportunity to interview lots of people in your last year of college. The NFL also has lists of people who have been advisors to players for years. Then there are seminars where advisors come and present, and at any point in time, players can sit down and have meetings with financial advisors. Often times, it’s another teammate that guides them. Hopefully, they will pick really solid and already successful former teammates who can guide. All that to say, athletes are extremely well-targeted. It’s well-known who is going to be a high draft choice, and therefore who is going to have access to a lot of money. From my perspective the question is: How does the athlete find an advisor who has been successful with athletes? I’m pleased with what we have been able to accomplish at Tennessee by setting our players up with good advisor relationships.
  • 19. Advising Athletes OCTOBER 2014 18 MW: It is difficult to go direct to the player. From my experience, the best way to build a business in this niche is by getting that first respected client who people believe in. And use that person as a reference to more players. A lot of times the athlete doesn’t want to refer you because they want you to themselves. What has been notorious in this industry is the rarity of having a deep practice. It is hard to build a deep book doing this. You have to be com- mitted to the long haul. It takes time. Instead of twenty firms with hundreds of athletes, there are hundreds of firms with a couple of athletes. It’s hard. I would say it’s hard to pursue this as a business, but then again I did myself.
  • 20. Advising Athletes OCTOBER 2014 19 Phillip E. Fulmer SENIOR PARTNER, BACK PORCH VISTA Among the top five winningest coaches in college football history, Phillip Fulmer now loans his interpersonal charisma, superb leadership skills, and peerless discrimination to business development at BPV Capital Management, LLC. Michael West SENIOR PARTNER AND CEO, BACK PORCH VISTA Mike West has years of entrepreneurial and executive management experience with a background in finan- cial management, strategic planning, mergers and acquisitions and business development. He brings his knowledge in these fields to his role as Senior Partner and CEO of BPV Capital Management, LLC. Meet Coach Fulmer Interested in a meeting with Coach Fulmer? Click the link and we will notify you of his next event in your area.
  • 21. SEPTEMBER 2014 Advising Athletes 2 Advising Athletes SEPTEMBER 2014 2 CONTACT US: 865.243.8000 Local 877.819.2188 Toll Free 9202 South Northshore Drive, Suite 300 Knoxville, Tennessee 37922 www.backporchvista.com BPV Capital Management is built on the simple belief that all investors deserve the ability to retire well. In our view, every individual should have the ability to achieve his or her own back porch vista through careful planning and saving. In our evolution from family office, to advisory firm, to manager of a family of funds, we’ve sat in every chair at the table, which means that we have a unique understanding of the challenges each member of the BPV family faces. For more information on Back Porch Vista, fill out the form below or call 877-819-2188. All game day images courtesy of the University of Tennessee Athletics Department