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Age 30 is the peak of a profession in many professions — unless you’re a skilled athlete. “It’s like they’re experiencing life in reverse,” he says Loop Capital Founder and CEO Jim Reynoldswhose profession includes a nine-year stint with Magic Johnson Enterprises. “They make the most money when they’re extremely young, whereas in business, you don’t usually start accumulating real wealth until you’re 50.”
The average NBA player retires at age 29, which sounds enviable when you ignore the proven fact that nearly 60% of them face serious financial difficulties after retirement. But it doesn’t have to be that way. While most retired players cannot jump like they used to, introducing them to the business world can still be a sure thing for business executives like Jim Reynolds who recognize their transferable skills, like tactical intelligence and an insatiable competitive streak.
Reynolds is currently the CEO Coconut5a fitness drink company he co-owns with the NBA Dream Team, which incorporates Devin Booker, D’Angelo Russell, Derrick Rose and the Morris twins, Marcus and Markeiff. The company made headlines this spring after partnering with the American Cancer Society to lift money for research and promote early detection.
Technology entrepreneur Julian AikenThe former DII point guard is no stranger to skilled sports. His uncle, Bob McCann, played in the NBA for five years, and many of his highschool friends have gone on to turn out to be skilled athletes. Aiken is the founder and CEO of Brunswick Sports Management, a company that helps athletes transition into business. Aiken recently launched his latest enterprise alongside the NBA trio of Michael Carter-Williams (retired), Mo Harkless (retired) and Andre Drummond (energetic): Special Real Estate Teamsa real estate enterprise that involves converting vacant industrial buildings into residential buildings.
Here are some universal principles that elite athletes and their business partners say may be transferred from the world of sports to entrepreneurship.
Become a little higher every day
In basketball, if you spend enough time alone shooting free throws, you’ll eventually make more of them in games. As Carter-Williams notes, there are no free throws in business. There are no set rules. So for him, the first step to raising his game in business was developing a survival mentality. Instead of a rigorous workout schedule prescribed by a trainer, he now prioritizes strengthening his mind every day.
“Sometimes I just force myself to do something or learn something that will help me succeed,” he says. “It could be something as simple as going on YouTube to learn about zoning laws. Or reading a complicated book about real estate.” His business partner, Aiken, shares this growth mindset, emphasizing that improving doesn’t mean going from 0 to 100% overnight. Instead, the trick is to get 1 percent higher every day.
“We don’t expect Mike or anyone else to finish the entire project immediately. But can you learn enough to finish a small percentage of it? And can you finish a little more next time? And so on.”
The small percentage increase won’t show up in Carter-Williams’ numbers prefer it did in his NBA days. He’s noticing his improvement in recent ways, like his growing ease in meetings and his understanding of real estate jargon.
“If I can understand more and answer questions that I couldn’t answer two weeks ago, I look at those as my little victories,” Carter-Williams says. While Carter-Williams still has a lot to learn about the real estate game, his NBA experience gives him a built-in advantage: premium access to other skilled athletes.
“Not everybody wants to listen to someone like me who hasn’t been in those locker rooms,” Aiken says.
“But if Mike can go in there and say, ‘I built a sustainable business that lasts much longer than my NBA career; here’s how I did it.’ Every NBA player will at least listen to him.”
Take your role
In basketball, a role player is an athlete with a specific skill set and a desire to place the team’s success above personal glory. They may not rating the most points or have the flashiest moments, but they understand their strengths and weaknesses and get the job done. Marcus and Markieff Morris, who have spent greater than a decade as role players in the NBA, understand the importance of recognizing their specific strengths and using them to enrich their teammates, a skill that has seamlessly translated to their roles on Coco5.
As energetic NBA players, the Morris twins have really stepped up their product placement game, bringing Coco5 straight into the NBA locker room and leveraging their status in some of the high-pressure boardrooms they’re in. During meetings, the twins often entertain potential investors with stories about their NBA journey, using their roles as athletes to realize respect, trust, and—most frequently—recent accounts.
“People love the idea of having connections with professional athletes,” Markieff says. “We can get into certain doors just by being NBA players.”
Play long run
In basketball, considering ahead and anticipating where it is advisable to be next is key. For Michael Carter-Williams, pivoting on the court is a good metaphor for pivoting off the court. You at all times need to think about your next move. It’s a lesson he wishes he had learned sooner.
“Do I regret not reaching out to more people in the professional world sooner? Do I regret not learning more about investing as a rookie and sophomore? Absolutely.” That’s one of the important reasons Carter-Williams is so wanting to help the next generation of players. As the NBA’s specialty real estate liaison, he now makes it his mission to arrange athletes for their next chapters, bridging the gap between current players, former players and business executives like Aiken. During a recent gathering at the home of his friend (and former Orlando Magic teammate) Cole Anthony, for example, he drew on his personal experiences to debate—without jargon—the importance of investing in your financial future sooner than you may think.
Jim Reynolds also knows a thing or two about playing the long game. For him, it comes right down to one goal: owning a piece. For young players like Coco5 partners Booker, 27, and Russell, 28, owning a piece of a company could possibly be more lucrative than basketball in the long term.
“By the time they’re 45, they’ll have a stake in a profitable business, years of professional experience and celebrity names to build on,” he emphasizes. “The richest people in America own stakes. That’s how Magic Johnson became a billionaire.”