Category: finances

  • Carmelo Anthony’s No. 7 Knicks Jersey is NBA’s Most Popular

    carmelo anthony team jordanBy claiming the No. 1 spot on the NBA’s highest selling jersey list, Carmelo Anthony, who is having an MVP-caliber season, became the first Knicks player to see the top spot since the list was announced beginning in 2001.

    It’s quite the accomplishment for Anthony, because the Knicks weren’t expected to improve as much as they have, and the Brooklyn Nets’ arrival in New York was supposed to rain on the Knicks’ parade. Instead, the Knicks have won 13 straight and clinched the Atlantic regular season title with a 51-26 record. They are poised to take on the struggling Boston Celtics in the first round of the playoffs.

    Anthony, a six-time All-Star, is in another battle: He and Oklahoma City Thunder forward Kevin Durant are currently fighting for this season’s scoring title. Going into Wednesday night, Anthony averaged 28.6, while Durant was averaging 28.3 points per game.

  • UltraViolet Demands Reebok Drop Rick Ross

    rick rossLooks like artists may start to watch what they say in their songs.

    UltraViolet, an organization dedicated to championing women’s rights and fighting sexism, is urging Reebok to drop Rick Ross based on the controversy of the lyrics akin to date rape in the song, “U.O.E.N.O.”

    In case you haven’t heard, the rapper states in the song, “Put molly all in her champagne/ She ain’t even know it/ I took her home and I enjoyed that/ She ain’t even know it.”

    A petition drafted by UltraViolet states, “By holding Rick Ross up as something to aspire to, Reebok is sending the message that raping a woman is cool — and that’s a dangerous message to send the boys and young men that Reebok markets to. This is what rape culture is.”

    On April 4, members of UltraViolet protested outside Reebok’s flagship store in New York City and delivered a petition with 71,763 signatures against Ross.

    Read more on AOL Black Voices

  • Man Pulls Out BB Gun as Obama’s Motorcade Passes

    be newsA man was arrested in Connecticut Monday afternoon after he pulled out a BB gun as President Barack Obama’s motorcade passed by, according to authorities.

    Police say the unidentified man was acting suspiciously, pacing back and forth, before he pulled out what looked like a rifle. President Obama was in Connecticut to meet with families who lost loved ones during the school shooting at Sandy Hook Elementary last December. The president later spoke at the University of Hartford to champion Congress to come to a vote on new gun control proposals.

    Read more at The Grio.

  • Rapper Maino Takes on Broadway Stage

    MAINOBrooklyn rapper Maino is taking his talent to the stage, but not the one we are used to seeing him on.

    The rapper will be starring in a stage play called “Freedom.” The play is about a wrongly-convicted man who spends over 20 years in jail for a crime he didn’t commit. The play’s focus is to bring to light the number of unjust incarcerations that happen on a daily basis.

    It follows the real life story of David Ranta, who was arrested and convicted of murdering Rabbi Chaskel Werzberger in 1991. He was recently released on March 21st, 2013.

    Read more at SOHH

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  • 5 Steps to Optimizing Your LinkedIn Profile

    Whether you’re a business owner trying to ramp up your startup’s connections or a recent graduate looking to secure post-grad opportunities, your LinkedIn account is crucial to landing new-found opportunities. LinkedIn is an excellent online networking tool that can assist you in building vital professional relationships.  Here, BlackEnterprise.com’s social media contributor S. Lynn Cooper highlights what you should do to complete

    Finish what you’ve started

    First impressions are everything. Think of your LinkedIn profile as your one shot. Thus, your LinkedIn profile should list your current position and at least two previous roles, academic institutions attended and contact information which will then make your profile 100% complete, according to LinkedIn’s standards.  Take the time to fill out the descriptions, listing your duties and inject keywords relevant to your industry.  Ask yourself, what would others type in the search box to find someone with my skill set?

    Put your best foot face forward

    Browsing through most social media sites, you’ll notice a majority of the profile photos are not professional. These laid-back photos are acceptable for personal profiles, but, since LinkedIn is a professional’s playground, promoting yourself or your brand without having professional photographs can drastically alter the way you and/or your business is viewed.

    Studies show that LinkedIn profiles with appropriate photographs are much more likely to get clicked on than those without.  So, even if you don’t have a professional photo, taking one with a high-resolution camera in conjunction with appropriate lighting, clothing and background is better than having no photo at all.

    Reach out

    Perform a series of searches to locate people you know by name via the search box. Once you’ve identified these contacts, click the connect button to add them to your network.  Send a custom message to the person within the invitation, especially if you’re not in constant communication with the individual. Once you’ve made a significant amount of connections, you should view the “People You May Know” page to review colleagues you may have missed.

    Request meaningful recommendations

    Take the time to reach out to your supervisors and closest colleagues to obtain quality recommendations prior to sending a request on LinkedIn, and explain the importance of their recommendation.  Once they have completed your request, take a moment and thank them and consider returning the favor by recommending them.

    Get those apps

    Third-party applications approved by LinkedIn allow you to customize your profile and showcase your work products. You may have crafted a white paper or presentation that can be of value to your industry; consider sharing it with your network via SlideShare which you can connect to your LinkedIn account. Perhaps you’ve penned a blog article, add the WordPress app so you can share you’re expertise.

    Take time to explore the infinite amount of tools and features that LinkedIn offers. It’s like a gold mine for those who want to take advantage of connecting with other professionals, establishing thought leadership and creating new opportunities.

    Have LinkedIn tips? Share your best practices in the comments section below.

    S. Lynn Cooper is a Washington, DC-based digital strategist and communications expert. Cooper is the founder and director of Socially Ahead, a strategic communications agency that specializes in the creation of social and digital strategies and campaign management. Follow her on Twitter at @sociallyahead.

  • Michael Jordan’s Paternity Suit Not Going Away

    michael jordan and pamela smithJust when we thought we’d never hear any more of Michael Jordan’s alleged love child with Pamela Smith, she states she will be refiling the case due to a technicality. As a result of her filing, then withdrawing her suit, MJ has struck back by suing her for his attorney’s fees.

    According to the original lawsuit filed, Smith lists her ex-husband as the father of her 16-year-old son, Grant “Taj” Reynolds. The lawsuit was spurred when the young, aspiring rapper posted a video on YouTube last year making the claim that Jordan is his real father and wanted the recognition of being the retired basketball player’s son.

    Grant plans on filing the lawsuit, once again, against Jordan, but plans on properly filling it out this time around.

    One thing is for certain, we WILL be hearing more.

    Read more at TMZ

  • Wedding Style: The Black Love Edition

    wedding day bride preparing

    (File)

    Black love is beautiful, and in these pictures we see the beautiful couple, The Brunts, share their special day with the world.

    Ebony.com got an inside look at the style chosen by the couple; especially the bride. Take a look at the dress, makeup and hair styling that went into making her day more memorable.

    Hair:  Styles by Chanterre

    Makeup: Nirvana Hair Salon

    Dress: Priscilla of Boston

    The couple wanted to reflect a simple style at their wedding, believing that less is more. They wanted flowers with a lot of color in various sizes, so they combined both large and small centerpieces which were customized by their florist, who put his own touches on the design.”

    Check out the photos at EBONY

  • Stillbirths May Be Connected to Stress During Pregnancy

    A new study sponsored by National Institute of Health says pregnant women exposed to stress are more likely to deliver a stillborn baby.

    Marian Willinger, PhD, author of the study and acting chief of the Pregnancy and Perinatology Branch of the Eunice Kennedy Shriver National Institute of Child Health and Human Development says a total of 2,430 women were questioned – 614 women with stillbirths and 1,816 with live births.

    “We were surprised at how common stressful life events were in pregnant women’s lives,” Willinger told the Grio. Those stressors could be financial, emotional, traumatic or partner-related.

    Almost one in five women with stillbirths and one in 10 women with live births had experienced five or more different stressful life events. Nearly all of the women had experienced at least one.

    There was an increased chance of stillbirth with each new stressful event.

    Read more about the study here.

     

     

  • Wesley Snipes Released From Prison

    Actor Wesley Snipes has been released from a federal prison where he was serving a three-year sentence for tax evasion, CNN reports.

    Snipes, who is 50, was released to a supervised residential facility in New York and will transition into house arrest, which will end July 19.

    The “White Men Can’t Jump,” star had been serving time at McKean Federal Correctional Institution in Pennsylvania since December 2010. A jury convicted him of willfully failing to file tax returns for 1999, 2000 and 2001.

  • A Year Later, Small Business Organizations with JOBS Act

    obama smiling

    The Jumpstart Our Business Start Up Act  (JOBS Act) was signed by President Obama one year ago today and a leading organization that represents entrepreneurs and small business owners has expressed frustration regarding inaction it feels from the administration.

    According to a statement issued by the Small Business & Entrepreneurship Council (SBE Council), the Securities and Exchange Commission’s response to the JOBS act has been subpar. They’ve failed to issue any rules helping small business improve capital access and have missed key deadlines set up under the JOBS Act.

    SBE Council President & CEO Karen Kerrigan who was present for the bill signing and  was part of the group that helped to spark the JOBS act legislation said: “The SEC is undermining this important capital formation initiative that was supported by an overwhelming majority in Congress. Entrepreneurs and high-potential businesses that can bring our nation back to robust levels of job creation and growth are being undermined. There really is no excuse for the SEC’s lack of progress.”

    Of particular importance was the provision in the JOBS Act which makes debt and equity-based crowdfunding legal. Organizations such as the SBE Council realized that capital was and remains a critical issue for small business owners.

    “While lending standards have eased some, according to the latest Fed senior loan officer survey, getting credit remains a difficult task for small businesses. For good measure, it’s worth noting that venture capital investment took a notable dip in 2012. Access to financing remains the biggest hurdle for most entrepreneurs, which makes crowdfunding a critical option in the marketplace,” noted SBE Council Chief Economist Raymond Keating.

  • Deficit Cutting Will Widen Retirement Gap for Minorities

    From Reuters:

    New research finds an appalling 20 to one chasm in net worth between white and black Americans, and an 18 to one gap between whites and Hispanics. The Pew Research Center found that the net worth gap has widened during the Great Recession, mainly because the housing bust disproportionately cut into the wealth of African-Americans and Hispanics.

    Read more here.

     

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  • The 10 Biggest Myths About Starting An Internet Business

    online-moneyYou have heard from people saying Internet Business is a waste of time, you will not make any money, there is no real money to be made online, it will never work and so many others negative words coming from people who don’t really understand in this Internet Business industry.

    The thing is, it does work. Why some people make a fortune and some don’t even make money at all? Simply because the people who make thousands or millions of cash knew all the lies in this business and they will not trust these lies.

    So what is this big internet lies? Below here are the 10 big internet lies that you should know:

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  • Nicolas Cage Money Problems: Balling Without a Budget

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    I grow weary of the fact that whenever the media presents an entertainer going broke, we almost always see a black man. Well, the tables do turn, even on the best of them. Actor Nicolas Cage is allegedly having major financial problems, having his property foreclosed and admitting in court that his former business manager may have milked him of millions of dollars.

    In a major court battle, the actor lost two of his homes worth a combined total of $6.8 million dollars. Cage owes over $5 million in mortgage payments and more than $150,000 to the city of New Orleans in real estate taxes. Cage is also suing Samuel Levin, his former business manager, claiming that Levin was responsible for his financial demise.

    Here are some quick and dirty thoughts on the plight of Nicolas Cage:
    1) Is there a change in the language? I noticed that a CNN article about Cage mentions the recession as one of the reasons that Cage is struggling financially. However, most commentary about the financial problems of NBA star Antoine Walker attributed his woes to financial irresponsibility. Not to accuse anyone of racism, but I wouldn’t be surprised if it were difficult for the world to imagine the great Nicolas Cage as being financially irresponsible.

    2) Hollywood money is not what it seems to be: By having five major projects slated for 2010, it’s tempting to believe that Nicolas Cage is going to be financially free by the end of next year. Not so fast. After actors finish paying the agents, lawyers, managers, and the IRS, they may only get 30 – 40% of their total pay package. That means that if Cage gets $10 million for his film, he is only going to see three or four million dollars of that money.

    Whatever the case may be, it does appear that Nicolas Cage was certainly living it up. Few A-list actors are as blockbuster-worthy as Cage, so there is no excuse for him to ever go broke. But given that Cage has purchased personal islands, castles, and other extravagant items, he put himself in a situation where he needed a lot of money in order to simply stay afloat. Michael Jackson had the same problem during his life, as he was easily spending five to ten million dollars per month. No matter how much money you have, you can always go broke. We should all live beneath our means.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Facebook: An Essential New Tool For Small Business Marketing

    The New York Times has just published an excellent article called: “How to Market Your Business With Facebook.” Some small business owners have eagerly jumped on the social media trend, while others like to keep it old school with traditional email marketing. But in this economy, entrepreneurs need to be as creative as possible about reaching new audiences while stretching marketing dollars, if you are lucky to have any. Getting to know Facebook is a great way to hop on social media’s runaway train, which shows no signs of slowing.

    Of Facebook’s growing cache as a marketing vehicle, The Times states:

    A growing number of businesses are making Facebook an indispensable part of hanging out their shingles. Small businesses are using it to find new customers, build online communities of fans and dig into gold mines of demographic information.

    “You need to be where your customers are and your prospective customers are,” said Clara Shih, author of ‘The Facebook Era’ (Pearson Education, 2009). “And with 300 million people on Facebook, and still growing, that’s increasingly where your audience is for a lot of products and services.”

    This two-page primer on Facebook marketing is a must for small business owners, even if you are already a regular visitor to Facebook.com. As social media sites make it possible for the average person to reach thousands of customers through a little online elbow grease, the time to utilize Facebook.com to the full is now.

    Do you use Facebook to market your small business? Share your success stories or cautionary tales below.

  • Tom Joyner Morning Show, Roland Martin, Money and Power

    This morning I had the great pleasure of having a conversation with my respected colleagues, Tom Joyner and Roland S. Martin. I have always loved the Tom Joyner Morning Show. My respect for Tom came when I found out that he once commuted daily between Chicago and Dallas in order to host shows in both cities. I appreciate anyone willing to sacrifice to reach their goals. Roland Martin has an equally compelling story about how he was forced into bankruptcy in order to become successful.

    The truth is that there are a whole bunch of people who want success, but they usually want it for free. These brothers understand that you usually have to pay a high price to get what you want.

    We were discussing the case of Heather Ellis. Heather Ellis is a 24-year old college student now facing 15-years in prison after being accused of cutting line at a Walmart. We are planning a rally for Heather in Kennett, MO on November 16, with thousands coming from around the nation in order to save her life. Tom Joyner, Roland Martin, and Michael Baisden are just a few of the names of brothers and sisters around the nation willing to step up to tell Heather’s story to the public.

    After the show was done, I called my assistant and confidant Shauntay, in order to talk about the events planned for the day. Shauntay is a stern reminder to me that you are only as good as the people who work for you, and she is the greatest assistant on Earth. During our conversation, Shauntay asked me, “Did you notice how they seemed to get nervous and rush you off at the end?”

    I said, “Yeah, I noticed that. But I don’t blame them, I might have done the same thing.”

    Why was I rushed off at the end of the segment? It all has to do with Walmart being one of the key corporate sponsors for the Tom Joyner Morning Show. During the interview, I first mentioned that it was reported as far away as Memphis that Walmart employees were being asked not to discuss the Heather Ellis incident. Tom started to deflect the conversation away from the merchant.

    “Well, that could have happened in any store, right?” said Tom.

    I then went on to explain that, while it could have happened in any store, there was no getting away from the fact that it happened in Walmart: A Walmart employee was the one who chose not to serve Heather after accusing her of cutting line, the family reports that nearly every Walmart employee involved in the incident has been transferred to another store, and there are Walmart employees on the affidavits filed after the incident took place. There is no way to disconnect Walmart from this incident.

    Unlike our supporters in Detroit, who are ready to boycott Walmart and stage a complete “black out” of the store, I have not asked for such a thing. Instead, I’ve only requested that Walmart use its influence to help Heather during her trial. I honestly believe that one sincere phone call from the right executive can make this situation go away. A daughter of a pastor, in college, with no criminal record is hardly the kind of thug that should be rotting away in the penitentiary. Anyone can understand that.

    This discussion of The Tom Joyner Morning Show is not a negative reflection on the righteousness of Tom Joyner or his choice of having Walmart as a corporate sponsor (if it were Wells Fargo, then we might have an issue). The incident is reflective of how the power of media is driven by corporate sponsorship. Given that corporate sponsors controlled by the descendants of the historical oppressors of black people are financing most African-American media, the ability to pursue true and meaningful activism is sometimes muted. In other words, nobody disrespects their daddy, especially if their daddy is the one putting food on the table. The life of one black woman is not, to some, worth the loss of millions of dollars in corporate money (I do not agree with this assessment). One of the limitations of capitalism is that it forces us to put a dollar value on human life. I personally think human life has infinite value, and that is why I am fighting for Heather.

  • Pop-Up Stores Provide Lucrative Alternative For Small Businesses

    Savvy entrepreneurs and larger retailers are opening up temporary stores, or “pop-ups” in empty storefronts, simultaneously boosting their brand and bottom line. The stores can last anywhere from a few days to a few months. And with the U.S. retail vacancy rate at 7.6%, for the third quarter of 2009, compared with 6.4% for the third quarter of 2008, according CoStar Group, Inc.– and the holidays just around the corner– now might be the best time to take advantage of the weak commercial real estate market.

  • Reebok Easytone Shoes: Sexy Ad Sells, But Is It Sexist? Answer is YES

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    Reebok Easytone Shoes are the hot topic of the hour on sites as diverse as gossip and business blogs. The flavor of the Reebok Easytone debate is not over the shoes themselves — which Wallet Pop has confirmed are actually comfortable. It is over the sexy ads and Web site that promote Easytone shoes by heavily depending on close-ups of a model’s butt, breasts and body. See one of the ‘shocking’ Reebok Easytone ads below, and judge for yourself:

    The model in the picture above (from another ad for Reebok Easytone shoes) is attractive, but I would not want a pair of sneakers that made my bottom so flat. Is that kosher to add to the fury being unleashed by those who find this marketing campaign beyond poor in taste? I hope as an actual woman who loves to exercise, my opinion counts. I have heard much more random perspectives on Web sites that suggest that anyone who complains about a woman’s body being ogled in an ad is probably fat and ugly anyway — as if the nature of the Reebok Easytone Shoe commercials are justified by other people’s flab. From a business perspective, this mantra of justification is being repeated everywhere: Sex sells, sex sells, sex sells. But does any excuse justify the promotion of female objectification that continues to run rampant in our society?

    Sure, on the one hand, Reebok has shoes to sell and the Easytone looks pretty boring without the sexy marketing. PopEater blog is correct in the assertion that this over-the-top approach to using sex is in getting the world clicking. And, no, Reebok is in no way solely responsible for the impact the images of women it creates has on the world. Yet, the fact is that statistic after statistic show women are not taken seriously enough in America to attain equal levels of power and wealth as men.

    Does one Reebok Easytone ad make all the difference in the ongoing reality of gender inequality? No. But it does seem to say that the most important thing a woman can do is tone her butt, rather than building a powerful mind. If we keep encouraging the idea (even incrementally through advertising) that being hot is the end-all, be-all for women, men will never stop seeing women as mere playthings, and girls might be discouraged from trying to be more.

    I am all for hotness, fitness and being sexy. But what about being in control, independent and cool? There is a way to display these traits while portraying a woman with her own power. Think Madonna. Look at Marylin Monroe, who was one of the first producer-stars in Hollywood history. Or Tina Turner, a woman who grows more sexy and stronger with age, and need I say richer. These Reebok Easytone ads take away all the nuance and complexity of a truly sexy, strong and emancipated woman. For this reason alone, I encourage the women they are trying to reach not to buy. Your time would be better spent building up your total identity, not just your bottom half. Women, let’s show these culture creators what real economic empowerment looks like by voting “NO” on Reebok Easytone with our dollars.

     

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  • Rihanna and Chris Brown: The Financial Value of Rihanna’s Pain

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    I hated what Chris Brown did to Rihanna. I was angered, disappointed and irritated by the fact that many are quick to forgive egregious behavior on the part of celebrities, and a hit song can forgive all sins. At the same time, celebs are just like the rest of us, full of complexities that the world may never come to understand. Rihanna has walked away from Chris and she is now telling the entire world how bad of a man he is, and we’re all taking her side.

    The problem for Rihanna, however, is that her actions aren’t making much sense.

    Rihanna’s recent whirlwind media tour has included the likes of ABC News, MTV and other major media outlets. Throughout this tour, she has allowed the world to enter into her dark reflection on the relationship she had with Chris Brown, with that reflection seeming to have almost no productive purpose. I am not sure why the he-say/she-say between two 19-year old kids should be the concern of the nation. But then again, I am sitting here writing about it, so I am as guilty as everyone else.

    The truth is, clearly, that Rihanna could have used this incident as a teachable moment and then moved on with her life. But that wouldn’t be nearly as profitable as doing a media tour attacking Chris.

    The point here is clear and quick:

    A personal tragedy is usually leveraged in order to sell a book or album: Did you notice how tennis star Andre Agassi revealed his drug addiction when his book was released? What about when Mackenzie Phillips announced that her father, well-known performer John Phillips, molested her as a child? Stories like this are a great way to get people to read your book or buy your records. Notice that it took Rihanna several months to start talking about Chris Brown in public. That was probably because she had to finish up her tracks. By the way – her album is scheduled for release in a few days. The Chris Brown story will be the primary driver of her album sales.

    Now, I am a Finance Professor and a capitalist. Well, I am mostly capitalist, to a point. I can understand why Rihanna’s handlers are milking the cow till the udders fall off. The story is interesting and like hungry kids in a candy store, we are salivating to find out more about what happened. But the truth is that we only know most of what occurred, not everything: All we really know is that they got into a fight and Chris won. But we also know that Chris lost the war because he is the one who got arrested. Is there anything else we need to know? Is there anything new that Rihanna is telling us other than vague and “clearly objective”(LOL) things like “his eyes had no soul.” What the heck does that mean anyway?

    While we can respect Rihanna’s decision to use this situation as a chance to build her brand (similar to when Juanita Bynum was allegedly beaten by her husband and then declared herself to be “the face of domestic violence”), the truth is that we probably shouldn’t fall for the hype. We should realize that this was an unfortunate situation,with many lessons to be learned about domestic violence in the black community. Rihanna will sell her records, and Chris will have to rebuild his own brand. But at the end of the day, this media whirlwind created by Rihanna is, for the most part, an opportunity to not only punch back at Chris, but a chance to make a little dough in the process.

    As the rapper TI might say, “It is what it is.”

    Dr. Boyce Watkins is a Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • BE 100s Bank Acquires Home Federal Savings

    Liberty Bank and Trust of New Orleans acquired Detroit-based Home Federal Savings Bank after the bank was shut down by the Office of Thrift Supervision (OTS) Nov. 6.

  • Boost Your Credit Score

    The rules for boosting credit have not changed in light of the new Credit CARD Act. “The rules have stayed the same: Pay bills on time, keep credit card balances low, and avoid bankruptcy and foreclosure,” says LaToya Irby, credit and debt management expert for About.com.

  • Boost Mobile President Matt Carter: His Sprint to the Top

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    Boost Mobile President Matt Carter tells why $50 cell phone service is a deal most people won’t refuse.

    As a kid in Boston, MA, Matt Carter looked up to the local post office clerk. Today an entire company looks for his stamp of approval before any decisions are finalized. The first African American president of a major telecommunications company, Carter leads Boost Mobile, a division of Sprint Nextel. As president, he is responsible for the business’ marketing, product development and finance teams. Despite hailing from the City of Champions, leading Boost to a whopping $600 million in new revenue – in less than two years – was no easy feat. The telecommunications brand was in an oversaturated niche market and lagging in the race against its competitive set when Carter took the helm. Carter recently talked to Black Voices about how he was able to revitalize the failing brand, and shared his insights on how African Americans can compete in corporate America. Matt wants us to know why it’s still important for black business people to create a league of our own to compete in — as we win in new fields.

    What led you to Sprint?
    I started my career off in marketing. I had worked for Bristol Meyers and Coca-Cola in New York in a variety of marketing positions on a global basis. I got recruited by Sprint three years ago to run their customer management group and when the new CEO came aboard he tapped me to go run Boost Mobile, a division of Sprint. I’ve been at Boost for 18 months, really focusing on revolutionizing the wireless industry.

    What made you accept the position as President of Boost Mobile?
    It brought together all of my experience in leadership, marketing, sales and technology. In addition, at that point in my career I was ready to lead a major division of a company.

    What are some of the challenges of your position?
    Typically when you’re coming in, you’re a change agent, but it didn’t take me long to help them understand that they needed to evolve. I had to put my foot down – a skill I learned from being the oldest child in a large, loving family. I let them know that the path we were on would lead to extinction. We had to figure out how to grow this business, and decided to create a brand that would be the advocate for the consumer. We realized that at the end of the day people are looking for simplicity. Think about it. The one bill you open up with trepidation every month is your wireless bill. You think you’re paying $49, but that turns into $65. So that was the opportunity: Let’s simplify it. So, we created a flat fee system of $50.

    What experiences helped equip you for such a powerful role?
    I was the oldest of five, so it was instilled in me early on that I had to set the example for everyone. That made me realize the importance of discipline and sacrifice. When you’re the oldest you’re constantly looking out for folks and I carry that with me today; I look out for my team. I also earned a degree in communications from Northwestern and an MBA from Harvard. Plus, I have more than 20 years of experience working with companies like Bristol Meyers and Coca-Cola.

    What pivotal moment led you to enter the business world?
    My first student loan bill. I was like, “how am I going to pay for this?” I went to Northwestern because I wanted to be a director. When I graduated I did what most kids do: I went to LA and became a waiter. My father couldn’t fathom how I could go to school then wait tables. I felt bad and eventually came home and got a job working as a supervisor at a factory where my mother was employed. I got a good taste of business there. I enjoyed motivating people and I liked competing. I gravitated towards marketing because it coupled my practical and creative sides.

    Finance Blogger S. Tia Brown Interviews Boost Mobile President Matt Carter

    When did your dreams change from wanting to be a mail man, or a job similar to your role models growing up?
    When I got to Harvard I realized that I was holding my own. Along the way you start to see that the privileged students are not any brighter or any better, so your confidence level begins to grow and you start thinking bigger. Going to Harvard raised my expectations about the possibilities of what I could do. I thought, ‘I could be the president of the United States.’ That was liberating.

    Fierce Wireless magazine named you No. 25 on their list of Most Powerful People in Wireless. You are also the only African American. How does that feel?
    I’m very humbled and appreciative of the recognition, but it’s reflective of what the team has done. In addition, I’ve gone through a lot of ups and downs in my career. You’re going to find people who still view your race as a stigma. People will do things to you because you’re not part of the “club.” You have to have the internal fortitude to maintain your composure when you’re faced with things meant to break you.

    What’s next for Boost Mobile?
    We’re the fastest growing wireless brand; we’ve acquired 1.7 million new customers in the last quarter. People are responding because there’s finally a product out there making things simple — this is not about economics or credit worthiness. We believe that we need to continue to broaden the appeal of our device portfolio. But I can’t reveal the new products that are on the radar.

    Your team has taken a product initially created for a niche market and made it mainstream. Did you have to create a different marketing strategy to appeal to the masses?
    Boost has a deep legacy in the African American community; we don’t want to abandon that. We want to build on it. Everyone, regardless of your culture, race or sex, is looking for value. So if you can get a $50 plan with unlimited, voice, web and text nationwide [you’ll want it]. It has nothing to do with skin color — only the color green.

    A lot of marketing campaigns geared towards African Americans perpetuate stereotypes. How do you feel about the use of the typical images of blacks in advertising campaigns?
    I’m always bothered by commercials that have people dressed up in the church robes, singing and dancing, like we’re still out of some minstrel show. You certainly have to be sure that there are messages out there that resonate with your target audience, but you’ve got to figure out how to reflect them smartly. You don’t want to turn people away. Our goal was to try to figure out how we could be relevant to a sort of rainbow coalition of clients.

    Speaking of marketing, it seems like you’ve been able to be stand out strongly amongst your peers, a great example of self-marketing. Why do you think Sprint recruited you?
    You’ve got to be known for doing something. I always look at people’s resumes and they are all over the place. What is your brand? What do you stand for? Mine is deeply rooted in marketing, so I am perceived to be a highly accomplished marketer who also demonstrates the ability to work across a variety of industries. I’ve worked in pharmaceuticals, telecommunications and financial services. My advice is to really be good at something and demonstrate that across a variety of industries so you leave yourself open for other opportunities.

    Unemployment is soaring and people are looking for career opportunities in new markets. What is your suggestion for anyone interested in the telecommunications industry?
    I don’t see a lot of African American engineers. I think we need more people with technical skills; that’s where the high-paying jobs are, in technical development. The engineers are the new artists and we’re not there.

    You have a great job and a successful career, but you’re still working on entrepreneurial ventures, like helping to create Ameritales (a historical cartoon series). Why divide your time?
    You can’t expect that you’re going to go work at a company and be there until you retire. We have to be smarter as a group around creating opportunities. African Americans are very creative but we haven’t parlayed it into true economic growth. I don’t know if it’s fear or a lack of mentoring.

    What tips do you have for those looking to start their own businesses?
    First of all, you must be willing to take a chance. Then, there are three key elements to being a successful entrepreneur:

    1. Preparation: People may want to start a company, but don’t know a thing about running one, like how to read a balance sheet or income statement. You should use your time while working for others to gather as many skills as possible.
    2. Network: Build a network of people that you will eventually need.
    3. Talent: Use all your talents to go out and create something. And don’t limit yourself to things like soul food restaurants and cleaning businesses. We now have a generation of African Americans with more exposure and training. We can create the next Google.

    What’s next for you?
    I plan to continue to grow, learn and see what the future holds. I’m under no illusion about life in the corporate world. I enjoy what I do today but I’m well prepared for many things.

    A trained life coach, S. Tia Brown has spent the last 10 years following her passion for journalism as an editor, writer and TV correspondent. Brown has worked for CNN, E!, MSNBC, the NY Daily News, Essence and Black Enterprise. Most recently she served as Senior Editor for In Touch Weekly magazine. Check out her advice column ‘Do Better, Be Better’ at www.tiabrown.com.

     

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  • NBA Star Antoine Walker is Broke: Five Lessons We can Learn

    Filed under: ,

    When I went to The University of Kentucky with Antoine Walker during the 1990s, we all knew he was going to be a star. He was headed for great things and would represent his family well. No one would have guessed that he would one day become the poster child for what NOT to do when you earn $110 million dollars.

    Antoine is busted, or as my friends would say, “broker than the 10 commandments.” He was recently arrested for not paying $800,000 in gambling debts he owed to a Vegas casino, and that’s when the financial roaches started coming out of the closet.

    In the midst of Antoine’s situation, we can all learn lessons. I thought I’d lay out a few for us to consider:

    1) Watch who you allow to handle your dough. It might sound good to say that you have an accountant, but the truth is that you are always vulnerable when someone is doing things with your money that you do not understand. Additionally, allowing friends and relatives to have access to your financial accounts is a very bad idea. While I have major issues with Bill Cosby, I was always impressed by the fact that he takes care of his own money. Also, one of the sad realities of NBA athletes is that most of them were not properly educated during college, given wimpy little majors that didn’t interfere with their athletics schedules, so some of them are unprepared to protect the wealth they work so hard to earn. Get an education- you’re going to need it.

    2) Don’t judge Antoine Walker harshly, this can happen to anyone. Going broke or going to jail is not just something that happens to bad or irresponsible people. The same is true for a gambling addiction. While we are tempted to attack Antoine Walker for his situation, the truth of the matter is that gambling problems impact hundreds of thousands of people every year: Campuses are being overrun by TV poker challenges and other seemingly harmless, yet financially devastating temptations. If you don’t yet have a gambling problem, be careful not to start one. That’s an easy way to go broke.

    3) Stay away from the vices: Drugs, gambling or other costly addictions have led to the financial downfall of many people. In addition to gambling, other vices such as drugs or alcohol can accelerate your path to the poor house. What’s worse is that the temptation to engage in these activities is greater when you have more money to burn. NBA and NFL stars are still quite young, and the idea of giving a 22-year old $10 million dollars a year is a scary thing. Even I would have made terrible mistakes if I’d received that much money so early in life. If you are in a relationship with someone who regularly engages in any of these bad habits, you might want to reconsider that relationship. It can cause you a great deal of trouble later on down the road.

    4) Show your love, but put a cap on it: Antoine Walker has shown himself to be a generous man, giving to children and taking care of relatives. The problem is that it’s difficult for anyone to be a one-man welfare machine. I only call it welfare when someone is asking for something for nothing. I find that it is more productive to ask for something before you give something away; put the relative to work on productive activities that will help save you money. It will make both of you feel better in the end. Also, budget your charity to ensure that you don’t go overboard in your giving. Typically, those who are asking you for money today won’t be anywhere around when you are having financial problems.

    5) Watch how hard you bling: While “blinging” and “balling” might be incredibly tempting, you should limit the number of status symbols you acquire in order to show your wealth. Antoine Walker has always loved to “do it big,” renting limos for every occasion and not wearing the same suit twice during the playoffs. While he gets a lot of points in style, the truth is that such financial extravagance is not only financially draining, it also makes you a big target. Years ago, when Antoine was robbed of several thousand dollars during a trip to Chicago (and again later at his home in Miami), we can probably assume that the robbers knew they were coming after a wealthy victim.

    I am not here to attack Antoine Walker. Instead, my goal is to make his challenges into a true teachable moment. The old model of the black athlete getting rich, staying uneducated, balling out of control and going broke has absolutely got to change. We must aim for something better.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • The Homebuyers Toolkit: Key Players

    Buying a home is a personal decision, but the process is not so private. Generally, you’ll work with about ten people. These include the seller, attorney, real estate agent/broker, home inspector, insurance agent, surveyor, appraiser, mortgage lender, title insurance officer, and an escrow officer. The attorney, real estate agent/broker, and the home inspector are the key players.

  • Antoine Walker is Broke: Five Lessons We can Learn

    Filed under: ,

    When I went to The University of Kentucky with Antoine Walker during the 1990s, we all knew he was going to be a star. He was headed for great things and would represent his family well. No one would have guessed that he would one day become the poster child for what NOT to do when you earn $110 million dollars.

    Antoine is busted, or as my friends would say, “broker than the 10 commandments.” He was recently arrested for not paying $800,000 in gambling debts he owed to a Vegas casino, and that’s when the financial roaches started coming out of the closet.

    In the midst of Antoine’s situation, we can all learn lessons. I thought I’d lay out a few for us to consider:

    1) Watch who you allow to handle your dough. It might sound good to say that you have an accountant, but the truth is that you are always vulnerable when someone is doing things with your money that you do not understand. Additionally, allowing friends and relatives to have access to your financial accounts is a very bad idea. While I have major issues with Bill Cosby, I was always impressed by the fact that he takes care of his own money. Also, one of the sad realities of NBA athletes is that most of them were not properly educated during college, given wimpy little majors that didn’t interfere with their athletics schedules, so some of them are unprepared to protect the wealth they work so hard to earn. Get an education- you’re going to need it.

    2) Don’t judge Antoine Walker harshly, this can happen to anyone. Going broke or going to jail is not just something that happens to bad or irresponsible people. The same is true for a gambling addiction. While we are tempted to attack Antoine Walker for his situation, the truth of the matter is that gambling problems impact hundreds of thousands of people every year: Campuses are being overrun by TV poker challenges and other seemingly harmless, yet financially devastating temptations. If you don’t yet have a gambling problem, be careful not to start one. That’s an easy way to go broke.

    3) Stay away from the vices: Drugs, gambling or other costly addictions have led to the financial downfall of many people. In addition to gambling, other vices such as drugs or alcohol can accelerate your path to the poor house. What’s worse is that the temptation to engage in these activities is greater when you have more money to burn. NBA and NFL stars are still quite young, and the idea of giving a 22-year old $10 million dollars a year is a scary thing. Even I would have made terrible mistakes if I’d received that much money so early in life. If you are in a relationship with someone who regularly engages in any of these bad habits, you might want to reconsider that relationship. It can cause you a great deal of trouble later on down the road.

    4) Show your love, but put a cap on it: Antoine Walker has shown himself to be a generous man, giving to children and taking care of relatives. The problem is that it’s difficult for anyone to be a one-man welfare machine. I only call it welfare when someone is asking for something for nothing. I find that it is more productive to ask for something before you give something away; put the relative to work on productive activities that will help save you money. It will make both of you feel better in the end. Also, budget your charity to ensure that you don’t go overboard in your giving. Typically, those who are asking you for money today won’t be anywhere around when you are having financial problems.

    5) Watch how hard you bling: While “blinging” and “balling” might be incredibly tempting, you should limit the number of status symbols you acquire in order to show your wealth. Antoine Walker has always loved to “do it big,” renting limos for every occasion and not wearing the same suit twice during the playoffs. While he gets a lot of points in style, the truth is that such financial extravagance is not only financially draining, it also makes you a big target. Years ago, when Antoine was robbed of several thousand dollars during a trip to Chicago (and again later at his home in Miami), we can probably assume that the robbers knew they were coming after a wealthy victim.

    I am not here to attack Antoine Walker. Instead, my goal is to make his challenges into a true teachable moment. The old model of the black athlete getting rich, staying uneducated, balling out of control and going broke has absolutely got to change. We must aim for something better.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the forthcoming book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Jay Z vs. Beanie Sigel: It’s Nothing but Business as Usual

    Filed under: ,

    Consider it a strange dream, but I had some thoughts about the Jay-Z beef with the rapper Beanie Sigel. No, I’m not here to talk about keeping street cred. Yeah, yeah, yeah. Half of the artists in the hip hop industry are not nearly as hard or as real as they claim to be. They’re too smart for that. The guys who are really as hard as most rappers claim to be are either in a jail cell or a casket. That’s the truth.

    What got my attention was when Charlamagne Tha God was fired from 100.3, “The Beat” in Philadelphia. I’ve known Charlamagne for years from our work on The Wendy Williams Show, so this made me a little upset. What was even sadder is the allegation that Jay Z may have played a role in getting Charlamagne fired, in large part because Charlamagne conducted an interview with Jay-Z’s new rival, Beanie Sigel. This incident represents more than the standard thuggery that some might see on the surface. Instead, it brings forth a plethora of issues that relate to business, entertainment, money and corporate power. Here are some quick thoughts:

    1) Getting Charlamagne tha God Fired? An allegedly weak move, but a lesson on corporate influence. The smartest artist I’ve ever seen in hip hop is 50 Cent. He writes songs about going to the club, but he doesn’t go to clubs. He gets you to bob your head and pop bottles of Vodka and Petrone, but he doesn’t drink himself. Effectively, he knows the power of getting others addicted, while keeping himself from being vulnerable to the very addictions he is using to control you (remember Ice Cube’s famous line, “Don’t get high on your own supply”?). Jay-Z is similar, as he has rejected the ridiculous, “bling yourself to death and then get shot or go to jail” mindset that many rappers seem to possess. Instead, he preoccupies himself with being a businessman, which means he has ultimate control over his fate.

    So, in spite of the fact that I am irritated at the very weak and unethical move allegedly committed by Jay Z, the teachable moment here is that the corporate monsters are the ones who control hip hop or any other art form for that matter. Most rappers only work to get a place on the plantation, not to actually own one.

    2) The Jay Z beef with Beanie Sigel has been played out thousands of times throughout human history. Ever since the beginning of entertainment, there has always been a natural beef between the sources of capital and the entertainers themselves. Artists are natural risk takers and many of them don’t spend two seconds thinking about the business models that finance their activities. Many artists put their energy into their craft rather than engaging in the boring task of understanding accounting, finance, marketing and distribution. The corporate captains, on the other hand, are not natural risk takers and they are the ones who decide if the show is going to even take place. Given that the corporate chiefs are making the financial choices, and the artists themselves want to push their work out at any cost, there is typically going to be a conflict of interest. The truth, however, is that when these conflicts occur, the artist almost always loses the fight. Those who provide the capital control much of the process.

    3) You’ve got to take good care of the people who work for you. Some have criticized Jigga and Diddy for not taking good care of their artists. I am not sure if this is true or not, but I do know that if you are tempted by corporate greed, you can find yourself enslaving people rather than empowering them. The greatest temptation in hip hop is to take advantage of another person’s obsessive commitment to fulfilling their personal dream. Thousands of artists get signed to Draconian contracts that are skewed heavily in favor of the manager rather than the artist. The problem, however, is that when you design business models to exploit other people, you may find that it comes back to hurt you later on down the road.

    4) There is a financial value of manufactured beef. This might surprise you, but a lot of so-called “beefs” in hip hop are actually branding mechanisms designed to get media attention to sell records. Ever notice how there are a lot of artists who want to stab and shoot each other one minute and then end up making records together the next? Much of this is due to the fact that the lifeblood of any artist is media access. No media means you don’t eat. Given that artists are effectively hired slaves for the record labels who can be used up and dropped at any moment, they are willing to engage in any desperate ploy imaginable to get the cameras pointed in their direction.

    Want to sell some albums? Go out and get arrested. Want to build your brand for “keeping it real”? Get caught in the club with a gun on your hip. Want to keep your job at the record label? Start a beef with a popular artist and get him to respond to you. As hyper-masculine as most hip hop artists pretend to be, the reality is that they are scared little boys on the inside; absolutely petrified that their label is going to find another talented brother from the projects and give him the spotlight they’ve bet their life on. This is not always such a great place to be, which is why any athlete or entertainer needs to get educated.

    Hip hop is an enlightened and exciting industry. At the same time, it’s the same corporate machine controlling people of color and distracting us from true power by keeping us engaged solely in the act of entertainment. As much as I might criticize Jay Z for allegedly going after my friend Charlamagne tha God, the truth is that Jigga seems to be the only one who gets it. Hip hop is not about entertainment, it’s strictly business.

    If you want to hear an artist’s perspective on all of this, I spoke with the Kansas City rapper, Vigalantee about the beef between Jay Z and Beanie Sigel. Click below to hear the conversation:

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Jay Z vs. Beanie Sigal: It’s Nothing but Business as Usual

    Filed under: ,

    Consider it a strange dream, but I had some thoughts about the Jay-Z beef with the rapper Beanie Sigal. No, I’m not here to talk about keeping street cred. Yeah, yeah, yeah. Half of the artists in the hip hop industry are not nearly as hard or as real as they claim to be. They’re too smart for that. The guys who are really as hard as most rappers claim to be are either in a jail cell or a casket. That’s the truth.

    What got my attention was when Charlamagne Tha God was fired from 100.3, “The Beat” in Philadelphia. I’ve known Charlamagne for years from our work on The Wendy Williams Show, so this made me a little upset. What was even sadder is the allegation that Jay Z may have played a role in getting Charlamagne fired, in large part because Charlamagne conducted an interview with Jay-Z’s new rival, Beanie Sigal. This incident represents more than the standard thuggery that some might see on the surface. Instead, it brings forth a plethora of issues that relate to business, entertainment, money and corporate power. Here are some quick thoughts:

    1) Getting Charlamagne tha God Fired? An allegedly weak move, but a lesson on corporate influence. The smartest artist I’ve ever seen in hip hop is 50 Cent. He writes songs about going to the club, but he doesn’t go to clubs. He gets you to bob your head and pop bottles of Vodka and Petrone, but he doesn’t drink himself. Effectively, he knows the power of getting others addicted, while keeping himself from being vulnerable to the very addictions he is using to control you (remember Ice Cube’s famous line, “Don’t get high on your own supply”?). Jay-Z is similar, as he has rejected the ridiculous, “bling yourself to death and then get shot or go to jail” mindset that many rappers seem to possess. Instead, he preoccupies himself with being a businessman, which means he has ultimate control over his fate.

    So, in spite of the fact that I am irritated at the very weak and unethical move allegedly committed by Jay Z, the teachable moment here is that the corporate monsters are the ones who control hip hop or any other art form for that matter. Most rappers only work to get a place on the plantation, not to actually own one.

    2) The Jay Z beef with Beanie Sigal has been played out thousands of times throughout human history. Ever since the beginning of entertainment, there has always been a natural beef between the sources of capital and the entertainers themselves. Artists are natural risk takers and many of them don’t spend two seconds thinking about the business models that finance their activities. Many artists put their energy into their craft rather than engaging in the boring task of understanding accounting, finance, marketing and distribution. The corporate captains, on the other hand, are not natural risk takers and they are the ones who decide if the show is going to even take place. Given that the corporate chiefs are making the financial choices, and the artists themselves want to push their work out at any cost, there is typically going to be a conflict of interest. The truth, however, is that when these conflicts occur, the artist almost always loses the fight. Those who provide the capital control much of the process.

    3) You’ve got to take good care of the people who work for you. Some have criticized Jigga and Diddy for not taking good care of their artists. I am not sure if this is true or not, but I do know that if you are tempted by corporate greed, you can find yourself enslaving people rather than empowering them. The greatest temptation in hip hop is to take advantage of another person’s obsessive commitment to fulfilling their personal dream. Thousands of artists get signed to Draconian contracts that are skewed heavily in favor of the manager rather than the artist. The problem, however, is that when you design business models to exploit other people, you may find that it comes back to hurt you later on down the road.

    4) There is a financial value of manufactured beef. This might surprise you, but a lot of so-called “beefs” in hip hop are actually branding mechanisms designed to get media attention to sell records. Ever notice how there are a lot of artists who want to stab and shoot each other one minute and then end up making records together the next? Much of this is due to the fact that the lifeblood of any artist is media access. No media means you don’t eat. Given that artists are effectively hired slaves for the record labels who can be used up and dropped at any moment, they are willing to engage in any desperate ploy imaginable to get the cameras pointed in their direction.

    Want to sell some albums? Go out and get arrested. Want to build your brand for “keeping it real”? Get caught in the club with a gun on your hip. Want to keep your job at the record label? Start a beef with a popular artist and get him to respond to you. As hyper-masculine as most hip hop artists pretend to be, the reality is that they are scared little boys on the inside; absolutely petrified that their label is going to find another talented brother from the projects and give him the spotlight they’ve bet their life on. This is not always such a great place to be, which is why any athlete or entertainer needs to get educated.

    Hip hop is an enlightened and exciting industry. At the same time, it’s the same corporate machine controlling people of color and distracting us from true power by keeping us engaged solely in the act of entertainment. As much as I might criticize Jay Z for allegedly going after my friend Charlamagne tha God, the truth is that Jigga seems to be the only one who gets it. Hip hop is not about entertainment, it’s strictly business.

    If you want to hear an artist’s perspective on all of this, I spoke with the Kansas City rapper, Vigalantee about the beef between Jay Z and Beanie Sigal. Click below to hear the conversation:

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Is Health Care Reform Going to Cost you More or Less Money?

    Filed under: ,

    All of us are confused about health care reform. Many of us support the idea because we support the president. Some of us support health care reform because we know that the current system is terribly flawed. Well, getting informed on the issues might be a great way to ensure that you know what you are backing.

    One of the great problems with health care reform is that most Americans can’t trust it in the first place, given that there are so many special interest groups who’ve hooked their fangs into a corrupt and dysfunctional system. Pharmaceutical companies charge incredibly high prices for drugs and work with lawmakers to keep consumers from having other alternatives. Every day, there is a senior citizen moving one inch closer to death because he/she can’t afford their medication. Most of us know that this system has to be altered.

    Dr. Elaina George is a prominent Otolaryngologist at the Peach Tree ENT Center in Atlanta Georgia. In the audio below, Dr. George breaks down the health care reform package that is being debated in Congress this week. So, while the news might be muted by the mass shootings that have recently occurred, we should not allow this distraction to keep us from the issues that are going to affect our lives.

    Click here to listen to Dr. George.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Congress Expands Homeowner Tax Breaks

    If you were rushing to close on a house before the end of the year, slow down. Congress voted to extend the $8,000 first-time homebuyer tax credit, Thursday.

  • Fighter Pat Barry Wins Big Purse Right Before Being Homeless

    Filed under: , ,

    UFC fighter Pat Barry was thanking his lucky stars for his big win against Antoni Hardonk. The fighter won a $120,000 purse for his accomplishment, which was right on time given that he was literally six days away from being evicted from his apartment. Barry’s win was emotional for obvious reasons and nearly everyone in his camp was in shock to hear about his financial situation. What is saddest is that his challenges are not uncommon among fighters in general.

    Although Pat Barry hasn’t had the chance to earn millions, many major fighters end up going broke even after their gravy trains have stopped flowing. The outcomes don’t make any sense, given that a bit of financial discipline could have made all the difference in the world. When you earn as much as $10 – $20 million dollars in a payday, you can live a pretty wild financial life and still have money to save. Instead, some athletes seem to want to push the limits and it’s actually uncommon to hear of any boxer who DOESN’T end up in the poor house.

    Here are a list of financial demons that plague fighters when they finally hit the big time:

    1) The bling: For some reason, athletes and entertainers are expected to live an incredibly extravagant lifestyle. Mike Tyson employed over 200 people and spent millions on items too ridiculous to mention. What’s worse is that Mike Tyson actually owed as much as $38 million dollars at one point. Evander Holyfield’s $10 million dollar, 54,000 square foot mansion was put on the auction block last year after foreclosure. Many athletes go into debt because they are banking on their next payday to get them out of the new financial holes they keep digging for themselves.

    2) Bad relationships: Divorce is a great way to go broke. Before Muhammad Ali married his third wife, Lonnie, his previous wife divorced him and took his last $2 million dollars right before Muhammad’s career ended with Parkinson’s disease. It was at that point when he found himself broke and unable to earn additional income. Fortunately, a good woman came into his life and used her MBA from UCLA to liquidate the massive financial value from his brand name. So, as much as black male athletes can be ruined by women, they can also be saved by them. However, a long string of baby’s mamas, bad marriages, draining relatives and expensive arm candy can cost an athlete dearly.

    3) The IRS: The IRS is sneaky and has led to the financial demise of many celebs. Even honest, hard working Americans can fall prey to the demon of back taxes. Joe Louis was one great example of a man who made a great deal of money, but found out years later that he owed tax money to the IRS. For the rest of his career, he would wander from one fight to another, with IRS agents waiting in the back room to take the entire purse after the fight. While his career was a great one, he was not a happy man in old age.

    4) A lack of education: A lack of money management ability and inadequate financial literacy plagues many wealthy entertainers and athletes. Growing up in poverty doesn’t exactly endow you with an extensive understanding of trust funds, estate planning, stocks and bonds. One of the great tragedies for NFL and NBA athletes is that many of them attend universities that simply hand the athlete a degree without forcing the athlete to get an education. But there is an old saying that “a fool and his money will soon part ways.” Even if you are incredibly wealthy, you have simply made yourself into a sucker for those who are smart enough to take that money from you.

    5) The leaches: The easiest way to get a pack of new friends is to have a lot of money. In addition to the friends who suddenly find you to be a fascinating human being, you’ve got managers, lawyers, agents, homeboys and baby’s mamas who want their cut. It is not uncommon for a celebrity to have to give away as much as $700,000 out of every million dollars he/she earns. Everybody wants a piece of your pie until you are down and out; at that point, you become yesterday’s news.

    I don’t think that any athlete should live like a miser, that’s no fun. Instead, why not simply save 20% of your income and party with the rest? That would give you a nest egg for retirement and allow you to pay the bills after you’ve fought your last fight. What’s saddest is that every boxer says they are going to retire young and none of them ever do. It’s time to stop living the same story over and over again.

    Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of the book, “Black American Money.” To have Dr. Boyce commentary delivered to your email, please click here.

     

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  • Haiti Competes for Grant to Tackle Deforestation

    With less than two weeks until voting ends for the fifth annual BBC World Challenge ’09, volunteer ambassadors for the Love ‘N Haiti project banded together last week in New York to gather votes for the global competition.