Derrick Morgan Retired From The NFL To Open Up An Opportunity Zone Fund And Help Change The World
ByJoey Heldon August 1, 2019inArticles›Sports News
After nine seasons in the NFL, Tennessee Titans linebacker Derrick Morgan is hanging up his cleats. The veteran just wrapped up a four-year, $27 million deal and was currently a free agent. That, combined with his next venture, made it the perfect time to retire.
“I’m at a time where, physically and mentally, it doesn’t make a lot of sense to continue,” Morgan told Forbes. “I feel at peace with the decision. I feel free in a sense to be able to wake up and put my mind and my energy towards things that are more purposeful to me at this time in my life.”
One “thing” is a $200 million Opportunity Zone (OZ) fund, which will invest in real estate in marginalized communities. A 2017 tax law now allows investors to make tax-free gains that compound with no limits, as long as they invest in OZ areas, meaning areas with a poverty rate of at least 20 percent or a median household income less than 80 percent compared to the surrounding area.
This move has been a while in the making. Morgan completed an executive M.B.A. program at the University of Miami in 2016. He’s been investing in real estate since 2012, experiencing everything from flipping homes to purchasing multifamily apartments and commercial properties. He also developed new construction and renovation projects with FEMA.
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Before announcing this latest OZ fund, Morgan launched the KNGDM Impact Fund to raise $50 million for real estate and businesses within OZs.
Morgan is targeting OZs because he believes in bettering the world. His investment portfolio is almost entirely companies that embrace social good. He invested in plant-based meat substitute Beyond Meat, CNote, which helps people invest in causes and communities, and CleanFiber, which uses recycled corrugated cardboard to make insulation.
Morgan said he knew he couldn’t play football forever and wanted to start considering his next moves. With the combination of making money and positively impacting the world, it seems his game plan is a huge success.
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Luke Kuechly Is Taking Endorsment Of A Product To The Next Level
ByJoey Heldon July 27, 2016inArticles›Sports News
In the past, athletes could make some good money with product endorsements. We all remember Mean Joe Greene taking a sip of Coca-Cola, or Michael Jordan and Larry Bird playing an epic game of H-O-R-S-E to win a McDonald’s meal.
Nowadays, athletes can still make a mint from endorsing a product, but their involvement often goes much deeper than simply showing up for a commercial shoot. Take a look at Carolina Panthers linebacker Luke Kuechly , who just signed a deal with nutrition startup Eat the Bear (ETB). And by “signed a deal,” we mean he’s serving as just the third equity investor in the company, and he has a seat on ETB’s board of directors.
ETB’s CEO Jude Colangelo projects the company, which specializes in “clean and lean” protein powders and supplements, will do $4 million in sales this year. That’s not a huge number by any means, though having Kuechly onboard certainly raises the profile of ETB.
It’s not clear how much Kuechly has invested, but after signing a $62 million extension with the Panthers last year, the linebacker is looking to make a few moves off the field, too. He’s always been interested of the business side of things; however, he’s still taking the time to research any potential deals he signs.
“The lifestyle I grew up with is still the lifestyle I live now: things in moderation, be smart with what you have,” he says. “It’s not going to be there forever. A football career is a finite career.”
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Kuechly is only 25, though he knows he plays a game where a career-ending injury is always a concern. He’s seen other athletes investing in their futures, and figures it’s his turn to lay the groundwork for when his playing days are over.
He can look to fellow NFL player Marques Colston for inspiration. Colston has invested in several startups in the performance and health and wellness industries. Not only does his existing knowledge of those areas minimize the due diligence Colston has to do, he’s able to provide his insight to those companies, effectively helping shape their futures.
Kuechly sees a similar opportunity with ETB, realizing he can contribute to both the company’s fame as well as its business strategy. He’s not simply taking a supplement and smiling for a television camera, he’s making an impact on the business and its long-term achievements.
In the NBA, stars like the Knicks’ Carmelo Anthony and former Laker Kobe Bryant have gotten involved with Silicon Valley companies, and Steph Curry has received equity stakes from Under Armour. He’s not alone, either – the company is starting to hand out equity to all of its celebrity endorsers.
Of course, endorsement deals can backfire for a brand: Adidas signed Derrick Rose to the largest endorsement deal in history. Soon afterwards, Rose tore his ACL, and more than four years later, he’s never returned to the same level on the court.
ETB and Kuechly are both based in Charlotte, something that Colangelo thinks will help the partnership. Colangelo, who has helped build and restructure companies while at Merrill Lynch and UBS, joked that Kuechly will someday be “coming for his office.”
Until then, Kuechly will be plenty satisfied sharing his experiences to help his first investment grow.
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