May 14, 2021

Baseball and business with A-Rod | Business Casual with Alex Lieberman

Check out the Starting Greatness Episode Page & Show Notes

Alex Rodriguez is disappointed by the US education system not teaching financial literacy
- “It’s arguably the most important class than any young person can take today” Alex Rodriguez
- 78% of NFL players experience financial distress within 2 years from retirement
In the past years, there has been a shift of power from the institution to individuals
What should pro-athletes do for their finances?
- Surround yourself with the best people in the world and build long term relationships
  - Do so during your career, not after it
Many athletes don’t invest in networking
- Whenever Alex went to a new city, he would meet with local entrepreneurs
3 main lessons learned from Magic Johnson
- You always want to stay relevant
  - Television allows you to do that and stay connected to your fans
- Go out for speaking engagements
  - It allows you to connect to the next generation of entrepreneurs and investors
- Surround yourself with a world-class team
Alex’s 90% Rule
- He’s happy leaving 10% of the deal on the table to encourage a long term partnership
- “It’s not fun getting rich by yourself” Alex Rodriguez
A lot of reputation has to do with taking a long term view
- What can you do for your partners?
- How can you create more win-win scenarios?

Alex Rodriguez (@AROD) is a former professional baseball player (3-time MVP and World Series Champion), entrepreneur, and philanthropist
Host: Alex Lieberman (@businessbarista)
In this conversation, Alex Rodriguez talks about his transition from pro baseball player to entrepreneur

Alex had always been fascinated with business
He remembers having to move to different houses as a kid because of the high rent
- He promised himself that as an adult, he wanted to be a landlord
- In his twenties, Alex bought 2 apartment units
- With time, he grew that to over 10,000 units in over 15 states

Alex is disappointed by the US education system not teaching financial literacy
- “It’s arguably the most important class than any young person can take today” Alex Rodriguez
Some stats
- 78% of NFL players experience financial distress within 2 years from retirement
- 12% go bankrupt within 10 years

Surround yourself with the best people in the world
- Do so during your career, not after it
Build long term relationships with them
- Many athletes don’t invest in networking
- They assume that things will just come to them
- Alex was mentored by Magic Johnson
- Whenever Alex went to a new city, he would meet with local entrepreneurs
  - Most people love sports, so they were happy to meet with him, and teach him some business lessons
Have a good attorney that is not over-protective
- As an entrepreneur, you have to take some risk, albeit calculated
In the past years, there has been a shift of power from the institution to individuals
- Athletes and entertainers can now create so much more value than in the past
  - They have access to platforms that big institutions need and don’t have

In his 20s, Alex had the chance to meet Magic and learn the lessons he learned from his business experience
3 main lessons he learned
- You always want to stay relevant
  - Television allows you to do that and stay connected to your fans
- Go out for speaking engagements
  - It allows you to connect to the next generation of entrepreneurs and investors
- Make sure to surround yourself with a world-class team
  - You are the average of the 5 people you surround yourself with
  - Alex looks for people with great values “Missionaries, not mercenaries”

As a pro-athlete, you don’t punch a clock
- You have to work and prepare as much as necessary
- You have to be able to persevere through hard times and be disciplined
- All things that entrepreneurs also need
2 Rules that Alex integrated into his business
- 10-touches
  - Alex needs to have at least 10 interactions between considering partnering with someone
  - It’s essential to also meet with people in person before partnering with them
- 90% Rule
  - He’s happy leaving 10% of the deal on the table to encourage a long term partnership
  - “It’s not fun getting rich by yourself” Alex Rodriguez
Alex’s discipline is key in making sure he complies with those rules

Like in everything, work side-by-side with an expert
Make sure you’re dealing with people with a solid reputation
Consider your long-term goals before making a deal
- Are you looking for cash flow or to create enterprise value?
- Your goals and available resources will help you define where to invest

Alex taught a class at Stanford about Reputation management
Young entrepreneurs often seek short-term gains and don’t think about their partners
- In the long-term, they make a lot of mistakes
A lot of reputation has to do with taking a long term view
- What can you do for your partners?
- How can you create more win-win scenarios?

Similarities between professional sports and business
- Require collaboration
- Offer tremendous upside
- Encourage healthy competition and long-term dedication
Alex and Marc Lore are buying the Minnesota Timberwolves for $1.5B
- They will start running the organization from 2023