25/07/2014 17:33
Carmelo Anthony: All-Star, Olympian, venture capitalist?
The New York Knicks' recently resigned star has started a fund to invest in technology startups with associate Stuart Goldfarb, Bertelsmann executive and a former NBC. M7 Tech Partners -- that is 'Melo No. 7, his jersey number -- will focus on "early-stage digital media, consumer internet, and opportunistic technology startupst," TechCrunch reports.
M7 has already invested an undisclosed amount to Hullabaloo, which makes children entertainment tailored for pills. Last year, Hullabaloo raised $1.8 million from investors including SV Angel, Reddit cofounder Alexis Ohanian, "Godfather of AdSense" Gokul Rajaram and Sugar founder Brian Sugar.
In declaring the partnership, 'Melo states that he is long "been interested in technology," and will be looking to raise capital for businesses which specialize in wearable tech. Melo's life, the increasing push to incorporate Google Glass in professional sports appears these two areas of' with it.
Having just signed an extension with the Knicks for around 'Melo is simply the most recent NBA star to parlay his fortune into investment firms. Steve Nash's Consigliere Brand Capital counts BirchBox and Contently among its success stories, while Jamal Mashburn and Michael Redd are finding life after basketball in enterprise capitalism. Hall is perhaps the most well known example, having co-founded Admiral Capital Group, a private equity firm specializing in real-estate.
The trend of NBA players launching investment firms is part of the broader trend of athletes creating company enterprises in preparation for their post-retirement professions. Michael Jordan became second billionaire sportsm https://www.retailblazer.com/best-savings-for-air-force-1-07-low-marina-blue-white-birch.html.n and the first from the NBA, thanks in large part to his ownership position his endless endorsement partnership with Nike, and ancillary businesses including restaurants and car dealerships.
These players seem to be heeding the warning supplied by the bevy of retired players gone broke, an issue that gained national prominence in the 2009 ESPN 30 for 30 movie, "Broke." According to Mint.com, 60 percent of NBA players declare bankruptcy within five years of retirement. From Latrell Sprewell to even a multiple champ for example Scottie Pippen, NBA history is riddled with cautionary tales, none with a higher drop from grace than Allen Iverson. In 2012, it was revealed that The Reply had blown through $200 million in career earnings, save for a $32 million "Reebok fund" that will give $1 million a year until he is 55.
Iverson's an extreme instance, a catastrophe not exceptional although exceptional in the marked, swift death in its course. As well as the spending that is rash and vulturistic entourage that so often accompany the unexpected windfall basketball players frequently go broke due to financial illiteracy and poor asset management. The league and players' union want to combat this, encouraging a financial education program and a Nike Air Force one Mid sale.rookie transition program to help players manage their money during and after their playing days. Nash, Robinson and now 'Melo are confronting that aspect head on to ensure that history does not repeat itself.
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'Melo in particular may want to tread lightly, yet. As much as misunderstanding finances leads to players' insolvency, so, too, do lousy investment choices. Sure, millions were gambled away by Antoine Walker, but he also sunk more than $10 million in investment properties in Chicago's South Side, owing to the spectacular incompetence of his financial advisor.
Let's hope 'Melo is knowledgeable with his wallet, but if anything, at least he has an experienced partner in Goldfarb. 'Melo can say he is in great hands with his venture capital endeavor. Not as much could be said concerning this luxury watch magazine you did not know he part-owned.
