Assets and liabilities are two of the most foundational terms in both personal and professional finance, including the sports industry.

📊What Are Assets?

Assets are things you own that hold value or generate income.

An asset is typically something that can be sold, borrowed against, or used to generate cash flow.

These Include

  • Endorsement and licensing deals.
  • Intellectual property (branding, trademarks).
  • Retirement accounts or pension earnings.
  • Physical items with resale value (cars, collectibles, jewelry, etc.)

💸What Are Liabilities?

Liabilities are financial obligations: things you owe or must pay over time.

Meaning For Athletes and Franchises

  • Mortgage debt
  • Car payments
  • Unpaid taxes
  • Agent fees or CPA costs
  • Escrow or league-held withholdings
  • Lawsuits or legal settlements
  • Lifestyle expenses without return

How Assets/Liabilities Apply In Different Leagues

🎓NCAA

Assets and liabilities apply to college athletes differently because they are not paid salaries from universities.

Assets for NCAA Athletes

Common assets include:

  • NIL endorsement deals
  • Social media and personal brand value
  • Merchandise or licensing income
  • Scholarships (tuition, housing, meals)
  • Cash savings and investments

For elite athletes, brand equity itself can become a major asset before ever turning professional.

Liabilities for NCAA Athletes

Liabilities still exist, even without a paycheck:

  • Taxes owed on NIL income
  • Agent, manager, or marketing fees
  • Training, travel, and recovery costs
  • Lifestyle spending without return
  • Poorly structured NIL agreements

Key Difference From Pro Sports

College athletes must manage assets and liabilities without guaranteed income or long-term contracts, often while still learning basic financial literacy.

Those who treat NIL money as an asset to grow, not cash to burn, enter the professional ranks with a massive head start.

Example

🏈NFL

Example

🏀NBA

Example

⚾MLB

Example

Alex Rodriguez’s post-playing career includes real estate investments and media. He shifted on-field earnings into appreciating assets, building a net worth north of $400 million.

🏒NHL

Example

Sidney Crosby’s long-term deal provided him a structured asset portfolio, while liabilities like relocation, taxes, and team escrow were accounted for by his agents.

⚽MLS / International Soccer

Example

Lionel Messi’s MLS contract includes salary, a massive revenue-share with Apple/Adidas, and image-rights deals, all major assets.

However, agent fees, international tax obligations, and relocation expenses stack liabilities.

🥊Combat Sports /🏌️Individual Sports

Example

Mike Tyson earned over $400 million, but legal settlements, unpaid taxes, and lifestyle liabilities left him bankrupt at one point in his life.

He’s since rebuilt via media and cannabis branding (assets again).

🏎️Racing (F1 / NASCAR / Indy)

Example

Why Assets & Liabilities Matter

  • Assets build your net worth.
  • Liabilities reduce it.
  • Too many liabilities = lifestyle trap, no matter how big the contracts.

🔗Related Terms

🔗Next Reads

“For where your treasure is,
there will your heart be also.”
– Matthew 6:21

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