Financial intelligence for athletes vital
By John Tuerijama
SOUTH African School of Millionaires (SASOM) (PTY) co-founder John Mphaphuli said many will agree that the glory days of many athletes are not long enough as they wish when their sporting career takes a dive many of them loss almost everything.
Presenting a topic on ‘athletes financial intelligence’ at the three-day Sport Expo Mphaphuli said history is full of many such sad stories adding that there must be a concern from governments, sport organization, coaches and all that many athletes did not do enough during the ‘fat’ years to prepare for their financial future.
“Despite these realities, it has been difficult to athletes to change the old ways of handling their finances, athletes’ financial challenges should be understood in the context of universal norms and practices, and not in isolation,” he said.
“Athletes does not have to reinvent the wheel for their financial success, a lot can be learnt from many of us.”
Quoting the meaning of financial intelligence by Rob Reiner Mphaphuli said: “ Financial intelligence is a determinant of economic achievement.”
“It is information, knowledge, wisdom and know-how-to that results in personal financial success and wealth creation. Financial intelligence is a determinant of economic achievement.”
“What is Financial Intelligence? It is not just about figures, amounts, interest but it is more about developing a new mindset, acquiring positive habits, rewarding self-personal financial success.”
He said SASOM’s motto is to help athletes to change status into wealth quoting Albert Einstein who said: “ The measure of intelligence is the ability to change.”
Mphaphuli further said that major causes to financial struggle are improving of life-style without wealth to it, living a life of pretence and trying very hard to balance financial life, lack of knowledge to differentiate an asset from a liability and buying of wrong things (liabilities) at the wrong time (no profit) with wrong money (salary).
He said lack of capacity is created when they (athletes) earn but waste whole lot of when they are introduced to financial institutions. Who sell to them financial products, but they remain with the same capacity and no financial skill.
On what financial skill is Mphaphuli said it is the ability and the capacity acquired through deliberate, systematic and sustainable effort to smoothly and adaptively carryout complex financial activities.
Looking at future challenges and opportunities in southern Africa Mphaphuli indicated demographic trends such as youth bulge and high unemployment, competing priority in the public sector financial situation, regulatory framework and pro-poor public policies.
He also highlighted future trends in sponsorship and private revenue sources including rising environmental concerns.
“There is a need to reinforce like between grassroots sport, high level sport and high visibility sport. Star athletes and team marketability and role modelling and reliable data for informed strategic decision-making.”