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Olympians might be at the top of their game, but they\u2019re still mere mortals. And if they don\u2019t plan right, they might fall from their great heights, Earvin \u201cMagic\u201d Johnson Jr. warns.<\/p>\n
The former Los Angeles Lakers great has five championships and a legendary stint as co-captain of \u201cThe Dream Team\u201d (the 1992 U.S. men\u2019s Olympic basketball team) under his belt. Speaking to BBC\u2019s<\/a> Katty Kay, the now retired businessman gives young Olympians some advice about how to prepare themselves for financial success and stability.\u00a0<\/p>\n \u201cIf you\u2019re earning money, please get you a business manager,\u201d Johnson said in an interview released in late June. He told Kay through laughter that many young athletes forget about the taxes due on their newfound money, and that \u201cthe IRS will be calling.\u201d<\/p>\n Speaking to athletes as young as 16, Johnson first implored them to have fun and live in the moment. But he also encouraged them to plan for the future, or at least look for others who can help them do as much. \u201cYou\u2019re going to make money so make sure somebody is there who has the knowledge to help you understand,\u201d he added.\u00a0<\/p>\n And Johnson did as much when he began his famed basketball career. \u201cI didn\u2019t know money when I grew up, my parents didn\u2019t know money. So when I got to the NBA I had to find people who knew money. That\u2019s why I\u2019m sitting here,\u201d he said, explaining that his choice to get a business manager was different from most other athletes at the time.<\/p>\n It\u2019s not about hiring the people you like the most either. \u201cThey hire these people not because of expertise but because they\u2019re friends. Well,they\u2019ll fail,\u201d Johnson said of players that rely on friends or family for financial advice instead of a manager in a 2009 Sports Illustrated<\/a> interview.<\/p>\n Playing a sport can take an undue physical and mental toll, and pro-athletes often have a short window before they retire to make a name for themselves and generate enough income to live on for years to come. Finances can be deceptive, as some athletes come into a large sum of money at a young age and find themselves blowing through it while navigating a tricky system.\u00a0<\/p>\n Historically, professional athletes have struggled to budget all the way towards retirement. A working paper<\/a> published in 2015 from the National Bureau of Economic Research, found that 15.7% of NFL players have filed for bankruptcy within 12 years post retirement. About 6% of all NBA players will go bankrupt 15 years after retiring, according to a preliminary finding from the Global Financial LIteracy Excellence Center<\/a>.<\/p>\n