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This post was updated July 19, 2023.
From NFL players to NBA stars, professional athletes often have significant resources to devote to housing, with many opting to own rather than rent for a sense of stability and security. As a real estate professional who specializes in working with professional athletes, I’ve seen firsthand the unique real estate needs and investments of these high-profile individuals.
That being said, there are times when it may be more advantageous for professional athletes to opt for renting. These occasions may arise due to factors such as the likelihood of being traded or drafted, familial responsibilities or the need to preserve capital in uncertain markets.
As an advisor, it’s crucial to pay close attention to these requirements and determine when to advise and when to listen. Even though it may be tempting to earn a significant commission on a multi-million dollar sale, providing exceptional service and dedication is essential, whether you are dealing with a lease or a high-value sale. Just like everything else in this business, reputation and relationships are what make or break you.
The median salary of players based on the NBA 2022-2023 season is only around $4.3 million while the average salary is around $8.5 million. However, it’s important to note that many professional athletes earn additional income from endorsements, investments and other sources. According to the NBA, the average player age is approximately 26 years old.
It can be overwhelming for someone in their 20s to have the tremendous responsibility of such substantial wealth, especially if it is not something they are accustomed to. It’s not uncommon for them to be extremely private about their actual finances, out of fear that they may be taken advantage of.
Royce Baptist, a commercial syndicator who focuses exclusively on sports and entertainment professionals says, “For those of us who endeavor to act with morality and prioritize the well-being of our clients, it is deeply troublesome to witness how frequently athletes are preyed upon by unscrupulous advisors.”
Baptist continues,
“These advisors, often motivated solely by their own financial gain, exploit the trust and naivete of distracted athletes, leaving them with relatively little to show for their hard-earned success. It is unacceptable that those who dedicate their lives to excelling in their sport are frequently left at the mercy of opportunistic individuals who view them as nothing more than a means to profit. It is our responsibility to educate and protect these athletes, and to hold accountable those who seek to exploit them for their own gain.”
Understand their unique real estate needs
But it’s not just about owning one home; many athletes own multiple properties, often investing in high-end luxury properties as a way to diversify their portfolios and create a source of passive income.
Take NBA legend Michael Jordan, for example, who has a real estate portfolio that includes golf courses and luxury homes. Former NFL player Vernon Davis is another successful real estate investor, with a notable development in D.C.
Connect with their support system
As a real estate agent, it’s essential to understand the role of sports agents in the real estate transactions of professional athletes. Sports agents are responsible for negotiating player contracts, endorsements and other deals on behalf of their clients, and they often play a crucial role in real estate transactions as well.
Many athletes rely on their sports agents to help them navigate the complex world of real estate, from finding the right properties to negotiating the best deals.
But as a real estate agent, I’ve found that it’s just as important to work closely with the athlete’s family members and coaches as it is with their sports agent. These individuals often have a significant influence on the athletes’ real estate decisions, and building strong relationships with them can be key to a successful transaction.
Accommodate their complex schedule
It’s also important to keep in mind that professional athletes often have unique scheduling demands and limited availability, so as an agent, you need to be flexible and accommodating to their needs. This may mean scheduling showings outside of traditional business hours or being available to communicate via phone, text, WhatsApp, FaceTime or email at all times.
Working with professional athletes can be both exciting and challenging, but it’s an incredibly rewarding experience. By understanding their unique real estate needs and investments, building strong relationships with their support system, and being flexible and accommodating to their schedules, you can become a trusted advisor to these high-profile individuals and help them achieve their real estate goals.
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