Investing 101 with Brad Scott

My Left Foote

Draftee
Jan 27, 2020
5
118
AFL Club
North Melbourne
I was cleaning out some old email folders this week, it’s the kind of exciting life I lead, and I came across this e-newsletter from The Barefoot Investor and chat with Brad Scott.

A few of things stood out for me:
– I was surprised at Brad’s knowledge of the player contracts, perhaps naively, I thought coaches wouldn’t be across that level of detail.
– Interesting to note in 2017 that 30 players (out of 44) were earning the average wage or below, does go someway to explaining the war chest .
– Looking at out list for 2017 I’d say the 14 players earning above average wage would have been:
Atley, Ben Brown, Cunnington, Sam Gibson, Taylor Garner (?), Goldy, Higgo, Swallow, Taz, Lindsay Thomas, Scott Thompson, Waite, Mason Wood and Jack.

26 June 2017
Can you imagine getting an immediate $60,000-a-year pay rise? Well, that’s what happened this week to a bunch of young blokes that I work with. Even better, the average 20-something who got the pay rise is pulling in a whopping $371,000 a year.

I’m talking about AFL footballers … who this week scored a six-year, $1.84 billion collective pay deal.
But now for the tackle: despite the serious dough they get, a lot of these players will end up kicking their finances out of bounds on the full. How does this happen?

Well, this week I sat down with a bloke who knows: North Melbourne coach Brad Scott.

A few things you should know about Brad: first, he’s whip smart; second, he cares deeply about his players; and third, he happens to be a Barefooter!
(Oh, and fourth, I’m helping his boys this year… with their finances, not with their footy. Obviously.)

“Part of the problem is that everyone else thinks they’ve got it made”, says Brad.
And then he proceeds to throw cold water over the “$371,000 average wage” claim that’s bandied around in the media (and by yours truly at the start of this column).
“Look, of the 44 players on our list, only 14 are earning above the average wage, and the rest are below it… and that would be similar for all the clubs.”
And ‘below’ is actually... really low: The minimum wage for a rookie is $71,500, and for a second-year player it’s $100,000.
Sure, good money for doing something you’d do for free ... but you’re hardly turning up to training in a Porsche 911.

And herein lies the problem:
“When you’re a young AFL footballer… you get a lot of female attention.”
“And the players… well, they’re not going to downplay the image. Really, it’s not in their interests to say… ‘hey I umm, actually don’t earn that much money.”
And it’s not just the girls. Often when the players go home they shout their mates, and their families, who all believe they’re loaded.
I know what you’re thinking at this point: “Yeah, but that’s just what they start on, they’ll soon earn the big bucks.”
And you’re right.

Brad tells me that when some young players get a sizeable contract that can mean their salary is double or triple their first pay. And that’s when the real problems begin.
When your income triples, so do the opportunities to spend it.
There’s no shortage of banks -- with private bankers in tow -- wanting to lend these players huge sums of dough, to fulfil their Instagram images.
“The average AFL player career is just three years”, says Brad soberly.
“So, yes, technically they can service the debt while they’re playing … but what happens when they stop?”
A financial shirt front. “I’ve seen it too many times”, says Brad. “Plenty of guys I’ve played with end their career with a negative net worth position.”
That’s why Brad tells his players there’s only one thing he’s really impressed by: “It’s not what you earn, it’s what you save.”

The final trap for many players… the world over… is that they tend to invest badly.
“They often invest in exotic investments”, says Brad.
Generally, it’s not their idea either.

The one thing I’ve learnt from dealing with professional sportspeople over my career is that there’s always a ‘bunch of blokes’ waiting around to hip-and-shoulder them into something complex, confusing, and high risk: restaurants, bars, property developments, you name it.

And best of all? These high-tax-paying players can be so negatively geared, they’ll be positively screwed!

The AFL and the clubs understand the problems players face, and that’s why they’re investing a lot into player development. Every club employs staff whose sole role is looking after player welfare. Plus, each player is mandated to have at least one weekday off per week to focus on professional development, either study or work placement.

Before the final siren sounds, the last word must go to Brad:
“The reason I’m passionate about financial education is that I’ve seen too many players who struggle after retirement, when they should be a step ahead. The reality is that a lot of players don’t succeed in the AFL -- but they can all succeed in life.”

P.S. I didn’t know where to post this, so if this belongs in another tread please merge.
 

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discodaddy

Team Captain
Jun 13, 2011
316
932
AFL Club
North Melbourne
Other Teams
There are no others
I was cleaning out some old email folders this week, it’s the kind of exciting life I lead, and I came across this e-newsletter from The Barefoot Investor and chat with Brad Scott.

A few of things stood out for me:
– I was surprised at Brad’s knowledge of the player contracts, perhaps naively, I thought coaches wouldn’t be across that level of detail.
– Interesting to note in 2017 that 30 players (out of 44) were earning the average wage or below, does go someway to explaining the war chest .
– Looking at out list for 2017 I’d say the 14 players earning above average wage would have been:
Atley, Ben Brown, Cunnington, Sam Gibson, Taylor Garner (?), Goldy, Higgo, Swallow, Taz, Lindsay Thomas, Scott Thompson, Waite, Mason Wood and Jack.

26 June 2017
Can you imagine getting an immediate $60,000-a-year pay rise? Well, that’s what happened this week to a bunch of young blokes that I work with. Even better, the average 20-something who got the pay rise is pulling in a whopping $371,000 a year.

I’m talking about AFL footballers … who this week scored a six-year, $1.84 billion collective pay deal.
But now for the tackle: despite the serious dough they get, a lot of these players will end up kicking their finances out of bounds on the full. How does this happen?

Well, this week I sat down with a bloke who knows: North Melbourne coach Brad Scott.

A few things you should know about Brad: first, he’s whip smart; second, he cares deeply about his players; and third, he happens to be a Barefooter!
(Oh, and fourth, I’m helping his boys this year… with their finances, not with their footy. Obviously.)

“Part of the problem is that everyone else thinks they’ve got it made”, says Brad.
And then he proceeds to throw cold water over the “$371,000 average wage” claim that’s bandied around in the media (and by yours truly at the start of this column).
“Look, of the 44 players on our list, only 14 are earning above the average wage, and the rest are below it… and that would be similar for all the clubs.”
And ‘below’ is actually... really low: The minimum wage for a rookie is $71,500, and for a second-year player it’s $100,000.
Sure, good money for doing something you’d do for free ... but you’re hardly turning up to training in a Porsche 911.

And herein lies the problem:
“When you’re a young AFL footballer… you get a lot of female attention.”
“And the players… well, they’re not going to downplay the image. Really, it’s not in their interests to say… ‘hey I umm, actually don’t earn that much money.”
And it’s not just the girls. Often when the players go home they shout their mates, and their families, who all believe they’re loaded.
I know what you’re thinking at this point: “Yeah, but that’s just what they start on, they’ll soon earn the big bucks.”
And you’re right.

Brad tells me that when some young players get a sizeable contract that can mean their salary is double or triple their first pay. And that’s when the real problems begin.
When your income triples, so do the opportunities to spend it.
There’s no shortage of banks -- with private bankers in tow -- wanting to lend these players huge sums of dough, to fulfil their Instagram images.
“The average AFL player career is just three years”, says Brad soberly.
“So, yes, technically they can service the debt while they’re playing … but what happens when they stop?”
A financial shirt front. “I’ve seen it too many times”, says Brad. “Plenty of guys I’ve played with end their career with a negative net worth position.”
That’s why Brad tells his players there’s only one thing he’s really impressed by: “It’s not what you earn, it’s what you save.”

The final trap for many players… the world over… is that they tend to invest badly.
“They often invest in exotic investments”, says Brad.
Generally, it’s not their idea either.

The one thing I’ve learnt from dealing with professional sportspeople over my career is that there’s always a ‘bunch of blokes’ waiting around to hip-and-shoulder them into something complex, confusing, and high risk: restaurants, bars, property developments, you name it.

And best of all? These high-tax-paying players can be so negatively geared, they’ll be positively screwed!

The AFL and the clubs understand the problems players face, and that’s why they’re investing a lot into player development. Every club employs staff whose sole role is looking after player welfare. Plus, each player is mandated to have at least one weekday off per week to focus on professional development, either study or work placement.

Before the final siren sounds, the last word must go to Brad:
“The reason I’m passionate about financial education is that I’ve seen too many players who struggle after retirement, when they should be a step ahead. The reality is that a lot of players don’t succeed in the AFL -- but they can all succeed in life.”

P.S. I didn’t know where to post this, so if this belongs in another tread please merge.
Brad would make a great player welfare manager.
As for his coaching...
 

Tectonic

Club Legend
Jul 11, 2017
1,686
6,351
AFL Club
North Melbourne
Probably.

On SM-G950F using BigFooty.com mobile app
Not sure if it's great to look down on the financially illiterate taking their first steps to understanding.
I was brought up in a very poor house and had a very difficult first few years of adulthood with regards to spending habits. As simple as they are, some of his tips and advice really helped me get my head around what I needed to do to get on top of things.
I've since moved on to some more complex ideas but it got me on the path and was useful.
 

Gasometer

Hall of Famer
Mar 14, 2002
49,411
57,704
AFL Club
North Melbourne
Other Teams
Kangaroos
Each year the National Draft confirms how difficult it is to play a career at the highest level
 

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hilly

Brownlow Medallist
Nov 27, 2000
10,773
13,680
AFL Club
North Melbourne
Other Teams
Triple M commentary team
Not sure if it's great to look down on the financially illiterate taking their first steps to understanding.
I was brought up in a very poor house and had a very difficult first few years of adulthood with regards to spending habits. As simple as they are, some of his tips and advice really helped me get my head around what I needed to do to get on top of things.
I've since moved on to some more complex ideas but it got me on the path and was useful.
Not looking down at all Tech. I just get amused by how BI is perceived as some sort of financial genius.

On SM-G950F using BigFooty.com mobile app
 

King Corey

Moderator
Jun 9, 2001
23,913
65,587
AFL Club
North Melbourne
Other Teams
St Johnstone
I was cleaning out some old email folders this week, it’s the kind of exciting life I lead, and I came across this e-newsletter from The Barefoot Investor and chat with Brad Scott.

A few of things stood out for me:
– I was surprised at Brad’s knowledge of the player contracts, perhaps naively, I thought coaches wouldn’t be across that level of detail.
– Interesting to note in 2017 that 30 players (out of 44) were earning the average wage or below, does go someway to explaining the war chest .
– Looking at out list for 2017 I’d say the 14 players earning above average wage would have been:
Atley, Ben Brown, Cunnington, Sam Gibson, Taylor Garner (?), Goldy, Higgo, Swallow, Taz, Lindsay Thomas, Scott Thompson, Waite, Mason Wood and Jack.

26 June 2017
Can you imagine getting an immediate $60,000-a-year pay rise? Well, that’s what happened this week to a bunch of young blokes that I work with. Even better, the average 20-something who got the pay rise is pulling in a whopping $371,000 a year.

I’m talking about AFL footballers … who this week scored a six-year, $1.84 billion collective pay deal.
But now for the tackle: despite the serious dough they get, a lot of these players will end up kicking their finances out of bounds on the full. How does this happen?

Well, this week I sat down with a bloke who knows: North Melbourne coach Brad Scott.

A few things you should know about Brad: first, he’s whip smart; second, he cares deeply about his players; and third, he happens to be a Barefooter!
(Oh, and fourth, I’m helping his boys this year… with their finances, not with their footy. Obviously.)

“Part of the problem is that everyone else thinks they’ve got it made”, says Brad.
And then he proceeds to throw cold water over the “$371,000 average wage” claim that’s bandied around in the media (and by yours truly at the start of this column).
“Look, of the 44 players on our list, only 14 are earning above the average wage, and the rest are below it… and that would be similar for all the clubs.”
And ‘below’ is actually... really low: The minimum wage for a rookie is $71,500, and for a second-year player it’s $100,000.
Sure, good money for doing something you’d do for free ... but you’re hardly turning up to training in a Porsche 911.

And herein lies the problem:
“When you’re a young AFL footballer… you get a lot of female attention.”
“And the players… well, they’re not going to downplay the image. Really, it’s not in their interests to say… ‘hey I umm, actually don’t earn that much money.”
And it’s not just the girls. Often when the players go home they shout their mates, and their families, who all believe they’re loaded.
I know what you’re thinking at this point: “Yeah, but that’s just what they start on, they’ll soon earn the big bucks.”
And you’re right.

Brad tells me that when some young players get a sizeable contract that can mean their salary is double or triple their first pay. And that’s when the real problems begin.
When your income triples, so do the opportunities to spend it.
There’s no shortage of banks -- with private bankers in tow -- wanting to lend these players huge sums of dough, to fulfil their Instagram images.
“The average AFL player career is just three years”, says Brad soberly.
“So, yes, technically they can service the debt while they’re playing … but what happens when they stop?”
A financial shirt front. “I’ve seen it too many times”, says Brad. “Plenty of guys I’ve played with end their career with a negative net worth position.”
That’s why Brad tells his players there’s only one thing he’s really impressed by: “It’s not what you earn, it’s what you save.”

The final trap for many players… the world over… is that they tend to invest badly.
“They often invest in exotic investments”, says Brad.
Generally, it’s not their idea either.

The one thing I’ve learnt from dealing with professional sportspeople over my career is that there’s always a ‘bunch of blokes’ waiting around to hip-and-shoulder them into something complex, confusing, and high risk: restaurants, bars, property developments, you name it.

And best of all? These high-tax-paying players can be so negatively geared, they’ll be positively screwed!

The AFL and the clubs understand the problems players face, and that’s why they’re investing a lot into player development. Every club employs staff whose sole role is looking after player welfare. Plus, each player is mandated to have at least one weekday off per week to focus on professional development, either study or work placement.

Before the final siren sounds, the last word must go to Brad:
“The reason I’m passionate about financial education is that I’ve seen too many players who struggle after retirement, when they should be a step ahead. The reality is that a lot of players don’t succeed in the AFL -- but they can all succeed in life.”

P.S. I didn’t know where to post this, so if this belongs in another tread please merge.
Thanks for posting that.

Interesting enough read. You'll probably finish that article reinforcing whatever notion you had of Brad beforehand.
 

JeanLucGoddard

Brownlow Medallist
Aug 21, 2018
12,084
28,577
AFL Club
North Melbourne
The Barefoot Investor has done very well by marketing common sense as wisdom.

OH MY GOD HE SAYS PAY OFF YOUR CREDIT CARD DEBT BEFORE SPECULATING ON THE SHAREMARKET!!!!!!!!!

Like yeah, no shit.
 

Tectonic

Club Legend
Jul 11, 2017
1,686
6,351
AFL Club
North Melbourne
The Barefoot Investor has done very well by marketing common sense as wisdom.

OH MY GOD HE SAYS PAY OFF YOUR CREDIT CARD DEBT BEFORE SPECULATING ON THE SHAREMARKET!!!!!!!!!

Like yeah, no shit.
I dunno man, the more basic stuff like getting people to front up to their debt problems and be honest with themselves about it isn't a bad thing.
 

JeanLucGoddard

Brownlow Medallist
Aug 21, 2018
12,084
28,577
AFL Club
North Melbourne
I dunno man, the more basic stuff like getting people to front up to their debt problems and be honest with themselves about it isn't a bad thing.
Oh I agree, it is good stuff. But he hasn't invented anything brilliant, he's just packaging up common sense.

I've dealt with him ... I say him, I mean "his people" ... for work stuff, he runs quite the operation these days.

But he is very thorough and accurate, he's no shonk.
 

discodaddy

Team Captain
Jun 13, 2011
316
932
AFL Club
North Melbourne
Other Teams
There are no others
His coaching wasn't as bad as everyone wants to make out now he is gone. He was a shoe in for another job until Scamper got such good results.
His coaching record is the very definition of average. Scott (apparently) told the Board that we needed to rebuild (again), but as we sit here today we all are puffing our chests out about our improved depth and finals prospects. Scamper's performance late last with the very same list deeply exposed Scott's flaws.

I can't speak for others, but over the last couple of years of his tenure I found his intransigence at the selection table, and the inflexible playing style very hard to take.
 

King Corey

Moderator
Jun 9, 2001
23,913
65,587
AFL Club
North Melbourne
Other Teams
St Johnstone
Yep, I know right. My God some of the dumb shit people do.
It's a tricky one. Some people must be exposed to such poor practices growing up that someone espousing the type of stuff you mentioned must come across as having a Warren Buffett level of analysis.

I've read the occasional weekend newspaper article of his, never read any of his books.

But if I had a dollar for ever unlikely fan I know who has endorsed Scott Pape's "fire extinguisher" concept*..

*Spolier: keep some spare money aside
 

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