Keep pulling the thread on Joe McLean.
Joe McLean requires new professional athlete clients to save at least 60% of their after-tax earnings.
Joe McLean's savings requirement for athlete clients escalates from 60% on their first contract to 70% on their second, and 80% to 85% on their third.
Citing a Sports Illustrated story, Barry Ritholtz noted that approximately 80% of NFL players and 70% of NBA players file for bankruptcy after their careers.
Joe McLean states many athletes go broke post-retirement because their burn rates of $3-4 million per year deplete their $10-20 million in savings within five years.
Joe McLean's firm, Intersect, grew to manage $1.7 billion for approximately 50 clients in less than seven years before being acquired.
After a series of acquisitions including Intersect, MAI Capital grew its assets under management from $12 billion to over $80 billion.
Joe McLean believes the value proposition of financial advice has shifted from providing access to public markets for Baby Boomers to providing access to private markets and lifelong cash flow management for younger generations.
A college basketball player who averaged 5.6 points per game is projected to receive a $1.8 million Name, Image, and Likeness (NIL) deal to play as a sophomore.
An athlete on a max contract in a major professional sports league is likely earning over $40 million per year.
An athlete on a max contract may spend between $400,000 and $1 million annually on personal health and training, including their own doctors and trainers.
Joe McLean projects that a current NBA draft pick who reaches their fourth contract will have grossed $1 billion in career contract value, assuming a 5% annual growth rate of the league's salary cap.
Joe McLean believes a significant blind spot for athlete investors is over-investing in illiquid private deals without a true understanding of their value or the associated risk.