Why Athletes and Managers Are Against Derek Fisher’s New Venture
Derek Fisher recently joined Luxury Asset Capital, an alternative financing vehicle for athletes that lends them in between $50K & $50M using their, property, contracts, & pension as collateral, According to their company website, he’s Executive Vice President for their Sports and Entertainment division while the president, Dewey Burke, is a former student-athlete.
This announcement came with much backlash from fellow athletes and individuals in the financial industry. It’s very interesting that an 18 year NBA veteran and former NBAPA president, would take part in this business venture that takes advantage of athletes. Earlier we spoke about why athletes should be cautious when accepting advanced payments and it’s really perplexing to see the benefit why this service is beneficial for athletes on the service.
These are a few reasons why people are so against Derek Fisher’s new venture:
Collateral
Luxury Capital uses athletes’ property, luxury assets, and even pension as collateral. That is a red flag, not only will the firm take your current possession but possibly future earnings through your hard earned pension.
If you dig deeper into the company it seems as if they take advantage of athletes falling on hard times, unfortunate situations, or in need of quick band-aid…
“The demands on the time, resources, and finances of athletes and entertainers is significant. Opportunities and challenges can arise at any time, and the funds required to successfully handle them may not be immediately available. Typical situations include financing luxury purchases, investments, relocation expenses, assisting family members with expenses, or unexpected costs ranging from taxes to medical bills. ”
— http://luxuryassetcapital.com/
Instead of being proactive they are being reactive and taking advantage of unfortunate timing of athletes’ situations.
Trust
One would think that fellow athletes would take it upon themselves to help each other out but sometimes athletes use their relationships to take advantage of others. Once it was public that Derek Fisher was part of Luxury Asset Capital, athletes such as Baron Davis were very skeptical. It’s important that you choose the right mentors and connect with people that have your best interest.
Originally published at www.afrugalathlete.com on December 13, 2018.
