THE year 2020 goes down in history as the year when many unfortunate events happened. On January 26, 2020, the legendary basketball player Kobe Bryant perished in a helicopter crash in the US. His popularity transcended beyond the basketball court. He was truly a global icon. Kobe won an Olympic gold medal and won five NBA championships. With his athletic success came financial success. It is therefore interesting to see how a superstar like Kobe managed his finances and see what is key views on money were.
Kobe Bryant played for only one NBA team, the Los Angeles Lakers, for 20 years. He put in the work and did everything to further develop his basketball skills. Long hours of practice were a staple throughout his playing career. The first lesson is that money is an outcome of effort. At the start of his career, he earned $3.5 million annually; but during his retirement, Forbes estimates that Kobe earned around $680 million. This level of income places Kobe as one of the highest-paid athletes and professionals in history.
Kobe was quoted as saying that “our mantra is value growth because to grow, you have to constantly learn, you have to constantly move, you have to constantly improve.” For Kobe, it wasn’t just about the quantity of hours but also about the quality of hours one puts in. Being better over time in one’s chosen profession is the key to having a successful career. A nice question to ask therefore is “What is next?” We have to aspire to achieve the best versions of ourselves. Competence ultimately brings in compensation.
Kobe was quoted as saying that he understood “the importance of building value and being smart with your finances.” With his athletic success, it was clear to Kobe that financial success was imperative. Kobe knew that there were well-paid athletes who eventually became broke. While he was still reaping success as a basketball player, Kobe planned for his retirement and planned for a better future for his family. In spite of all the distractions that come with fame and fortune, Kobe continued to trek the right path.
Kobe believed in having multiple streams of income. While he earned a lot from his salary as a basketball player, he entered into endorsement deals with prestigious brands like Nike, Coca-Cola, McDonald’s, Mercedes-Benz and Hublot. He did not stop with endorsements. He invested in various businesses like BodyArmor, Art of Sport and HouseCanary. He also published books and his animated short film, “Dear Basketball,” even won him an Academy Award. His diversified income streams made income sustainable.
In terms of business, Kobe had interesting pieces of advice. He advised that one should only invest in businesses one understands. It may be catastrophic to be engaged in a business where unfamiliarity of the operations and the landscape are evident. He advised that one should be patient in business. In a way, being in business requires commitment and resilience. He also advised that one should invest with the right people. Having a strong culture with people who are competent and ethical strengthen a business.
Kobe was quoted as saying that “purely giving material things to your siblings and friends may appear to be the right decision; but the day will come when you realize that, as much as you believed you were doing the right thing, you were actually holding them back.” Essentially, more than giving, Kobe recommended “the need to figure out a way to invest in the future of your family and friends.” This lesson is basically recommending that teaching loved ones how to fish is a lot better than just giving them the fish.
Kobe Bryant had massive wealth but what is more impressive is how he was able to manage his wealth properly. He remains to be a hero to many. His legacy on and off the court particularly with respect to finances is enduring. The money lessons from Kobe hopefully inspire all of us to manage money better.
Gemmy Lontoc is a registered financial planner of the RFP Philippines. To learn more about personal financial planning, attend the 87th RFP program this January 2021. To inquire, e-mail info@rfp.ph or text <name><e-mail> <RFP> at 0917-6248110.