Family office insights this week:

• How five top athletes won even bigger off the field

• Rotten tomato at ketchup empire accused of $1 million fraud

• The Milken Institute on the business of sports evolution

• Disengaged employees are costing the global economy $8.9 trillion

• The best hobby to meet wealthy people isn’t what you think

The world’s wealthiest athletes

Europe’s biggest soccer tournament kicks off in Germany today.

The UEFA European Football Championship sees 51 games played by 24 European nations.

The French team are favorites to win.

But the real winner is likely UEFA, set to earn €2.4 billion from the month-long event.

Sport is big business, the global industry is estimated at over $450 billion.

This week it’s a look at some of the world’s most successful athletes, both on the field and in the boardroom.

The latter is of major importance, since an athlete's average career length (across the NFL, NHL and MLB) is only 3.5 years.

Some have certainly done better than others: names like Tiger Woods, Michael Jordan, Lionel Messi and Maria Sharapova come to mind.

Here’s five more worth noting, and the companies responsible for growing their fortune.

LeBron James

• $1.2 billion net worth

• The first active NBA player to become a billionaire

• Founded his LRMR family office in 2006 together with friend and business manager, Maverick Carter

• His investment in Beats by Dre in 2008 reportedly made him $700 million when the company sold to Apple

• Obtained a 2% stake in Liverpool Football Club in 2011

• Secured a 1% equity stake in Fenway Sports Group in 2021, that was increased in 2023

• Also invested into cycling via Cannondale bikes in 2008 and Canyon Cycles in 2020

• Numerous other real estate investments as well as media

Roger Federer

• $700 million net worth

• Multiple rights and real estate investments through his Tenro company, established in Switzerland in 2007

• Co-founder of Team8, an Ohio-based sports management company with Coco Gauff and Henrik Lundqvist amongst clients

• Most notable deal is his 3% share in Swiss performance shoe brand, On, worth approximately $300 million today

• Other investments include several plant-based foods companies

• Had ongoing sponsorship with Credit Suisse, which UBS agreed to continue after the takeover

Cristiano Ronaldo

• $500 million net worth

• The world’s highest paid athlete, with +900 million social media following

• Various investments and interests through his CR7 business and LM Capital

• Includes CR7 branded ventures, from apparel to fragrances and fitness centers

• Hospitality investments via Pestana Hotel Group, plus restaurant investments together with Rafael Nadal and Enrique Iglesias

• Invested into Spanish hair transplant clinic brand Insparya in 2019

Serena Williams

• $340 million net worth

• Williams invested in the Miami Dolphins along with her sister Venus in 2009

• Established her venture capital firm Serena Ventures in 2014, with a mandate to support women and founders from underrepresented backgrounds

• Serena Ventures has reportedly invested in 14 unicorns already

• Created her own multimedia production company in 2023, Nine Two Six Productions

• Founded pain relief and recovery brand Will Perform in 2022

• Founded female beauty brand Wyn Beauty earlier this year

Alex Rodriguez

• $350 million net worth

• Through his A-Rod Corp, formed in 1995, Rodriguez has invested across real estate, sports, media and various startup ventures

• Notable investment is in the Minnesota Timberwolves and Lynx, as well as an early investment in Snapchat in 2016

• Co-founded Slam Corp, a SPAC focused on tech, media, health and wellness investments

• A major real estate player, with +30,000 apartments and homes, and his own development company, Newport Property Construction founded in 2008

• Invested in UFC fitness facilities as well as the Professional Fighters League itself

• Other investments include Vita Coco water in 2011 and Dominican beer brand Presidente in 2020

Opportunity for the family office world?

These athletes are outliers.

A surprising percentage of professional athletes end up bankrupt shortly after retirement as a result of mismanagement and/or poor planning.

Approximately 15% of NBA players are bankrupt within 12 years of retirement, and a huge 40% of professional European football players are bankrupt within five years of retirement!

This should change with better access to information and a more developed ecosystem to manage wealth.

The multi-family office world is well-suited to this, considering the wealth potential and family-focus many athletes have.

Several MFOs are already structured to preserve and grow the fortunes of athletes, for example:

• All Time in Monaco, founded by Formula 1 driver Charles Leclerc and his brother Lorenzo

• AWM Capital in California, with several former professional athletes on the team

• Imperium Sports Family Office in Denmark, lead by former Danish footballer Lasse Vibe

Are we set to see a whole lot more?

Before the regular features, a quick poll for US family offices 🦅🗽

I will share the results next week.

𝕏 highlights

Family offices are particularly susceptible to fraud.

This one got people talking: +630k views, +800 replies. My favorite answer: Congress.

Interesting data from BNY Mellon on family offices and crypto.

 💼 where to work

Gallup’s State of the Global Workplace 2024 report states 62% of employees are not engaged at work, costing the global economy $8.9 trillion!

Find a job that engages you. Here’s three opportunities currently open…

Associate, Strategic Initiatives - Dalio Family Office (Connecticut)

Chief Investment Officer - Single Family Office (Dubai)

Trust Manager: Private Wealth & Family Offices - TMF Group (London / Service Provider)

📚 what to read

This week I had to include one of my favorite sporting books - Moneyball: The Art of Winning an Unfair Game by Michael Lewis. It recounts how the Oakland Athletics used statistical analysis to build a competitive baseball team on a shoe-string budget. Some think the data-driven approach undermines the beauty of sport, but I love the innovation-fueled underdog story.

📻 what to listen to

In the Joe Pomp Show, host Joe Pompliano dives into the business and money of sport. The show looks at topics such as Caitlin Clark's $28 million shoe deal with Nike and Tiger Woods' new clothing brand.

📺 what to watch

From the Milken archives - The Business of Sport.

And finally…

This week the newsletter hit 3,000 subscribers!

Thanks for following along. 🙏

I’m told that a 60% open rate over the last year is something to celebrate! 🎉🍾 

There’s still room to grow and some exciting plans are ahead, both here and across social media.

Watch this space!

If you’re in the family office space and interested to reach +3,000 engaged subscribers and start a discussion with +30,000 followers on X, hit ‘reply’ and let’s make something happen.

Family Office Buzz will be back on Monday (here’s the last edition if you missed it) with more of the best content on family offices and beyond.

Until next week, see you on 𝕏 or LinkedIn

X

 in LinkedIn

✉️ [email protected]

📶 RSS feed

𝕏 @MrFamilyOffice