Keep pulling the thread on Joe McLean.
Joe McLean requires new professional athlete clients to save a minimum of 60% of their after-tax earnings.
The required savings rate for Joe McLean's athlete clients increases with subsequent contracts, rising to 70% on a second deal and 80% to 85% on a third deal.
Joe McLean states that many professional athletes go bankrupt from unsustainable post-career burn rates of $3-4 million annually, even when retiring with $10-20 million in assets.
In less than seven years, Joe McLean's firm Intersect grew to manage $1.7 billion for approximately 50 clients with a team of 11 people.
MAI Capital, which stands for McCormick Advisors International, has grown from $12 billion to over $80 billion in assets under management.
Joe McLean asserts the value proposition of financial advice has evolved from providing access to public markets to a new model focused on access to private markets and managing lifetime cash flow.
Joe McLean cited a research service projecting a college basketball player who averaged 5.6 points per game will receive a $1.8 million Name, Image, and Likeness (NIL) deal to play as a sophomore.
An athlete on a maximum contract in a major sports league may spend between $400,000 and $1 million annually on personal health, training, and body maintenance.
Joe McLean projects that a top NBA draft pick today could gross $1 billion in career contract value by their fourth contract, assuming a 5% annual growth rate in the league's salary cap.
Joe McLean identifies a significant blind spot for modern athlete investors as over-allocating to illiquid private market deals without fully understanding their risk or true value.
Barry Ritholtz cited a Sports Illustrated story which reported that 80% of NFL players and 70% of NBA players file for bankruptcy after their careers.
NBA players are subject to a "jock tax" of up to 10% on basketball-related income, of which they typically receive about 65% back from the league.