PART 2 – Lessons from Team Owners

Most professional sports teams have an owner.  He or she bought or inherited the team, has particular objectives in mind, objectives that include or invariably are enhanced by winning. 

PART 2 offers a select sampling of ownership styles that might inform retirement planning.

  • On Control
    • Charlie Finley, MLB Oakland Athletics,1960-1980
    • Jerry Jones, NFL Dallas Cowboys, 1989-

As owner of your retirement plan, how much control should you retain and how much do you delegate?  Most owners of professional teams accumulated their wealth from another industry or an inheritance, and were not former players or coaches in the sport their team plays.  Accordingly, they tend to take a more hands-off approach regarding day-to-day operations.  However, there are exceptions, and they can be instructive for considering the level of control you may want to exert over your retirement plan.  Charlie Finley was an insurance salesman, full of ideas, imagination, and himself.  He championed several ideas that changed the game (like the designated hitter rule and World Series night games), and others that fell flat (like orange baseballs, adding his pet donkey Charlie O to his bullpen, and carrying the sprinter Herb Washington on his roster as a designated pinch runner: Herb appeared in 105 games as a pinch runner, but never once came to bat or otherwise took the field). Such antics alienated fellow owners, as did his abrasiveness with his own players and fans.  Attention seemed his primary goal, and by that measure he was a success.  As fate would have it, several future Hall of Fame players combined under his reign to bring five straight championships to Oakland, which many view as a case of random good fortune rather than ownership skill.  There is a lesson here: an investor who bought a winning stock early (like Amazon) can be rich without being wise.  Do not confuse good strategy with good outcomes, for elements of chance often play a major role.

Like Finley, Jerry Jones doubles as both owner and general manager of his team.  Unlike Finley, or most NHL owners, Jones played the game in a highly-ranked collegiate program, where he earned all-conference selection and was co-captain of the 1964 national championship team.  Soon after purchasing the Cowboys, he fired Hall of Fame coach Tom Landry and named a former teammate as replacement, then shortly thereafter named himself general manager.  The team won only one game that first year.  Jones did not panic, because he knew the game well and had confidence in his judgment regarding football operations and personnel.  Three years later the Dallas Cowboys won the Super Bowl.  To this day, Jones listens, but makes the call.

What should you directly control as the owner of your retirement plan?  Three things, at least:

  • Your choice of Retirement Manager and Financial Advisor

Do you qualify to be your own retirement manager and advisor?  Do you want to assume one role and outsource the other?  Do you outsource both roles, and if so, to one professional or two independent professionals?  Going it alone can be hazardous.

  • Your calibrated level of “Risk Intelligence”

Limit your direct involvement in the planning and execution to what you know, which first requires that you know what you do know and what you don’t.  A Retirement Manager can help measure and calibrate your risk intelligence by asking a series of financial questions that are  (i.) loosely related to funding a retirement, but (ii.) unlikely to be answered with certainty.  For example, one could ask:

What is your best guess of the level of the DJIA at the beginning of 2020?

Select 2 levels such that the true level is equally likely inside or outside that interval?

If you are very confident of your best guess, then the interval should be narrow, and to the extent you are unsure of the value your interval should widen.  Either way, if properly calibrated regarding what you do and don’t know, the proportion of true levels inside their associated intervals should approach 50% as the number of independent questions increases.  Many people exhibit a behavioral bias known as “overconfidence”, evidenced by true values falling within the 50%-tile bands significantly less than half the time.  If you exhibit this tendency toward overconfidence, then you should defer to professional advice.

  • Your calibrated level of “Risk Tolerance”

How comfortable are you with the possibility of outliving your financial resources, perhaps moving into a spare room offered by your adult daughter?  Are you willing to sell your home, downsize, and use any home equity proceeds to help support retirement?  If your retirement plan anticipates spending 70% your current level of needs, would you make a risky investment with high upside potential that could reduce coverage to 50%?  If you are enticed by the prospect of gambing for higher returns, you are “risk-prone”.

If it is very important to avoid such risks to sleep at peace, then you are “risk-averse”.

Sports team owners often are risk-prone; retirement planners tend to be risk-averse.

It often is instructive to further consider your levels of relative risk aversion:

  • If you prefer to hold a smaller percentage of your assets in risky investments as your wealth increases, then you have:
    • Increasing relative risk aversion
  • If you prefer to hold the same percentage of your assets in risky investments as your wealth increases, then you have: 
    • Constant relative risk aversion
  • If you prefer to hold a larger percentage of your assets in risky investments as your wealth increases, then you have:
    • Decreasing relative risk aversion.
  • On Stability
    • Peter Holt, NBA San Antonio Spurs, 1996-2016
    • George Steinbrenner MLB, New York Yankees,1973-2010

The San Antonio Spurs are considered by many to be the single most successful franchise in the modern era of American competitive team sports, with the highest winning percentage and five NBA championships over the past two decades — but few fans can name their owner.  He remained hands-off.  By contrast, George Steinbrenner was the face of the NewYork Yankees for a generation.  Championships came his way as well, but many believe that, given the market and talent advantages, many more would have but for his constant meddling — replacing the team manager 21 times in his first 23 years as owner, including hiring and firing Billy Martin five times.  

Stability invariably trumps chaos, and the team (or retirement plan) owner sets that tone.  Select your management and advisory team wisely, develop a plan you embrace, and stick with both.

  • On Flexibility
    • James Dolan, NBA New York Knicks, 1999-
    • Joe Lacob, NBA Golden State Warriors, 2010-

Although he had never coached before, Steve Kerr was offered two head coaching positions in 2014.  Most assumed he would take the Knicks job, with the glamor and trappings of The Big Apple, and the comfort of working with Phil Jackson, the general manager who coached the Chicago Bulls to NBA championships with Michael Jordan (and Kerr) executing his patented “triangle offense”, and whom Dolan had hired after seeing that success followed by more of the same with the Lakers and Magic  Johnson.  But Kerr is a smart, independent thinker.  He saw that the Knicks lacked an MJ or Magic, lacked stable ownership, and was looking to the past.  By contrast, although the Warriors had not competed for a championship in four decades, they had fresh ownership with strong Silicon Valley roots, a data-informed approach to capitalizing on analytic insights, its pulse on the evolving future of the league, and the best shooting backcourt ever assembled, ready to exploit the 3-point trend.  Kerr chose the Warriors, and so far has coached five full seasons, with five appearances in NBA Finals.  A successful retirement plan owner has to remain nimble, ready to adapt to changing circumstances.

  • On Frugality
    • Marge Schott, MLB Cincinnati Reds, 1984-1999
    • Harold Ballard, NHL Toronto Maple Leafs, 1972-1990

Both these owners were notoriously cheap and universally despised, but there was a difference.  Schott was a chain-smoking alcoholic and outspoken racist, who twice was suspended by the league for her discrimination against and refusal to employ people of color.  She so resented high salaries of players that she made them pay for their own equipment, fly commercial, and personally handed out meal allowances herself, using dimes, nickels and pennies.  Ballard also was frugal, but with purpose.  He was a con man, eventually going to prison for fraud.  He had little apparent interest in hockey, still less in winning games; his sole interest was making money.  He was unwilling to increase payroll to improve the on-ice product, as every game was sold out regardless.  As owner of your retirement plan, spend as needed for guidance to achieve goals — but no more.

… and There’s Always Next Season

Team sports share another characteristic; although the timing throughout a year varies, every sport has an annual cycle of pre-season, regular season, post-season, and off-season.  The off-season is similar across sports, and regardless of win-loss record: assessments, adjustments, and actions, all in an effort to maintain or pursue outstanding performance in future seasons.

Retirement planning should be no different.  Any variations in goals, significant deficiencies in performance metrics, or other relevant factors should be assessed annually with your “coaches” and “front office”, and adjustments or more substantial actions should be taken as indicated.

Comments 2,099

  51. First off I would like to say awesome blog! I had
    a quick question in which I’d like to ask if you don’t
    mind. I was interested to know how you center yourself and clear your head before
    writing. I’ve had a hard time clearing my mind in getting my
    ideas out there. I do enjoy writing but it just seems like the first 10 to 15
    minutes are generally wasted just trying to figure out how to begin. Any ideas or tips?
    Cheers!

    Reply

  63. Have you ever thought about adding a little bit more than just your articles?
    I mean, what you say is valuable and everything. But think about if you added some great visuals or videos to give your posts more, “pop”!

    Your content is excellent but with pics and videos,
    this site could definitely be one of the most beneficial in its
    niche. Awesome blog!

    Reply

  68. Hi there, just became aware of your blog through Google, and found that it’s really informative. I am going to watch out for brussels. I will appreciate if you continue this in future. Many people will be benefited from your writing. Cheers!

    Reply

  70. It is perfect time to make some plans for the future and it is time to be happy.
    I’ve read this post and if I could I wish to suggest you few interesting things
    or advice. Maybe you could write next articles referring to this article.
    I want to read even more things about it!

    Reply

  77. This is really interesting, You are an excessively professional blogger. I’ve joined your feed and stay up for searching for more of your excellent post. Additionally, I have shared your site in my social networks!

    Reply

  87. It’s appropriate time to make some plans for the future and it’s time to be happy.

    I’ve read this post and if I could I desire to suggest you some interesting things
    or suggestions. Perhaps you can write next articles referring
    to this article. I desire to read more things about it!

    Reply

  89. Greetings from Los angeles! I’m bored at work so I decided to browse your website on my iphone during lunch break.

    I love the info you provide here and can’t wait to take a look
    when I get home. I’m shocked at how quick your
    blog loaded on my cell phone .. I’m not even using WIFI,
    just 3G .. Anyhow, great site!

    Reply

  91. Thanks a lot for the helpful posting. It is also my belief that mesothelioma has an incredibly long latency interval, which means that the signs of the disease may not emerge right up until 30 to 50 years after the primary exposure to asbestos fiber. Pleural mesothelioma, which can be the most common type and is affecting the area about the lungs, might result in shortness of breath, chest muscles pains, and also a persistent coughing, which may bring on coughing up bloodstream.

    Reply

  97. Thanks for your posting. I would like to comment that the first thing you will need to carry out is find out if you really need fixing credit. To do that you must get your hands on a copy of your credit file. That should never be difficult, because government necessitates that you are allowed to receive one no cost copy of your actual credit report each year. You just have to request that from the right people. You can either find out from the website for your Federal Trade Commission as well as contact one of the main credit agencies instantly.

    Reply

  100. I have been browsing online more than three hours lately, but I never discovered any interesting article like yours.
    It is pretty value sufficient for me. In my view, if all website
    owners and bloggers made just right content as you probably did, the internet can be a lot more helpful than ever before.

    Reply

  102. You’ve made some decent points there. I checked on the net for more
    information about the issue and found most individuals will go along with your views on this website.

    Reply

  104. I have acquired some new issues from your web page about pc’s. Another thing I’ve always assumed is that laptop computers have become an item that each residence must have for most reasons. They provide convenient ways in which to organize the home, pay bills, shop, study, listen to music and in some cases watch tv shows. An innovative way to complete many of these tasks is to use a notebook. These pcs are portable ones, small, effective and lightweight.

    Reply

  107. It is the best time to make a few plans for the longer term and it’s time
    to be happy. I’ve read this submit and if I may I want to counsel you some attention-grabbing things or suggestions.
    Maybe you can write subsequent articles regarding this article.

    I wish to learn more things about it!

    Reply

  113. It is appropriate time to make a few plans for the longer term and it is time to be happy.

    I have read this post and if I could I wish to
    counsel you few interesting issues or advice. Maybe
    you can write next articles regarding this article.

    I desire to learn more things about it!

    Reply

  114. It’s pervect timee to make a ffew plans forr thee lohg run andd
    iit is time too bbe happy. I’ve lern thnis publish andd if I may I
    wishh too rexommend yoou some ffascinating tings orr tips.
    Maybe yyou cohld writge nex articles resferring too this article.

    I ant tto rea even morfe thingss apporoximately it!

    Reply

  118. Hey there! I’ve been reading your site for some time now and finally got the
    bravery to go ahead and give you a shout out from Porter Tx!
    Just wanted to say keep up the excellent job!

    Reply

  127. Woah! I’m really loving the template/theme of this site. It’s simple, yet effective.
    A lot of times it’s hard to get that “perfect balance” between usability and visual appearance.
    I must say that you’ve done a fantastic job with this. In addition, the blog loads super fast
    for me on Safari. Superb Blog!

    Reply

  130. I have been browsing online more than 3 hours nowadays,
    yet I by no means discovered any fascinating article like yours.
    It is beautiful worth sufficient for me. Personally, if all website owners and bloggers made excellent
    content material as you did, the web will likely be much more helpful than ever before.

    Reply

  131. Excellent beat ! I wish to apprentice even as you amend your website, how can i subscribe for a weblog site? The account helped me a acceptable deal. I have been a little bit acquainted of this your broadcast offered shiny clear idea.

    Reply

  134. Nice blog here! Additionally your web site rather a lot up fast! What host are you the usage of? Can I get your affiliate link to your host? I want my site loaded up as quickly as yours lol

    Reply

  136. Your style is really unique compared to other
    people I’ve read stuff from. Thank you for posting when you have the opportunity, Guess I will just book
    mark this blog.

    Reply

  139. It is appropriate time to make some plans for the future and it’s time to be happy.
    I have read this post and if I could I wish to suggest you some interesting things
    or advice. Perhaps you could write next articles referring to this article.
    I wish to read even more things about it!

    Reply

  141. It’s appropriate time to make a few plans for the longer term
    and it is time to be happy. I’ve read this publish and if I may just I
    want to recommend you few interesting issues or advice.
    Perhaps you can write next articles referring to this article.
    I desire to read even more issues approximately it!

    Reply

  143. It’s the best time to make some plans for the future and it is time to be happy.
    I’ve learn this submit and if I may just I wish to recommend you few fascinating things or suggestions.
    Maybe you can write subsequent articles referring to this article.
    I desire to read even more things approximately it!

    Reply

  147. Its like you read my thoughts! You appear to
    know a lot about this, such as you wrote the e book in it or something.
    I feel that you simply can do with a few percent to
    force the message house a little bit, but instead of that, this is great blog.
    A fantastic read. I’ll certainly be back.

    Reply

  153. Hey, I think your blog might be having browser compatibility issues.
    When I look at your blog site in Safari, it looks fine but when opening in Internet Explorer,
    it has some overlapping. I just wanted to give you a quick heads
    up! Other then that, very good blog!

    Reply

  162. Hi, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam remarks?
    If so how do you stop it, any plugin or anything you can recommend?
    I get so much lately it’s driving me crazy so any support is very much appreciated.

    Reply

  166. I’ll right away take hold of your rss as I can not find your e-mail subscription link or e-newsletter
    service. Do you have any? Kindly let me understand in order
    that I may just subscribe. Thanks.

    Reply

  168. It’s perfect time to make a few plans for the long run and it is
    time to be happy. I have learn this post and if I may I desire to counsel you some fascinating things or suggestions.
    Perhaps you could write subsequent articles relating to this article.

    I desire to read even more issues about it!

    Reply

  188. It is perfect time to make some plans for the future and it’s time to be happy.
    I’ve read this post and if I could I wish to suggest you some interesting
    things or tips. Perhaps you can write next articles referring to this article.
    I desire to read more things about it!

    Reply

  198. I have been browsing online more than 2 hours today, yet I never found any interesting article like yours.
    It is pretty worth enough for me. In my view, if all webmasters and bloggers made good
    content as you did, the internet will be a lot more useful than ever before.

    Reply

  201. Hi there would you mind letting me know which hosting company you’re utilizing?
    I’ve loaded your blog in 3 different web browsers and I must say this blog loads a lot faster then most.
    Can you suggest a good web hosting provider at a reasonable price?

    Kudos, I appreciate it!

    Reply

  203. I’ve ben surfing onlibe more than 2 hpurs today, yet I never found anyy interesting article like yours.
    It iss pretty wokrth nough foor me. In mmy view, iff aall ebmasters annd bloggers mmade
    gold cntent ass yoou did, the internet wiull bee a loot moee usful than ever before.

    Reply

  205. It’s appropriate time to make a few plans for
    the longer term and it’s time to be happy. I have learn this put up and
    if I may just I desire to suggest you few fascinating things or advice.

    Perhaps you can write next articles regarding this article.
    I wish to learn even more things approximately it!

    Reply

  207. I just couldn’t leave your site before suggesting that I
    extremely loved the usual info a person supply on your visitors?

    Is going to be back regularly to check out new posts

    Reply

  208. Hi, I do think this is a great website. I stumbledupon it 😉 I may return yet again since i have book marked it.
    Money and freedom is the greatest way to change, may you be rich and continue to help other
    people.

    Reply

  221. Nonetheless, you can recognize chatting truly with out
    spending your cash should you’ve saved Chaturbate token generator The hack
    readily available for producing Chaturbate tokens will
    be utilized by all.

    Reply

  223. Hello there! This post could not be written much better!
    Looking through this article reminds me of my previous roommate!
    He always kept talking about this. I’ll send this post to him.
    Pretty sure he’s going to have a good read. Thanks for
    sharing!

    Reply

  225. Today, I went to the beach with my kids. I found a sea
    shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed.
    There was a hermit crab inside and it pinched her ear. She
    never wants to go back! LoL I know this is totally off topic but I had to tell
    someone!

    Reply

  227. I have been surfing online more than 2 hours today, yet
    I never found any interesting article like yours.
    It’s pretty worth enough for me. In my view, if all website owners and
    bloggers made good content as you did, the net will be a lot more useful than ever before.

    Reply

  233. I’m really inspired with your writing skills and
    also with the layout in your blog. Is that this a paid subject or did
    you modify it your self? Anyway keep up the nice quality writing, it is uncommon to look a
    nice blog like this one these days..

    Reply

  235. I really love your website.. Great colors & theme.
    Did you develop this site yourself? Please reply back as I’m looking
    to create my own site and would love to learn where you got this from or
    just what the theme is called. Many thanks!

    Reply

  236. I simply couldn’t go away your web site prior to
    suggesting that I extremely loved the usual information an individual supply in your guests?
    Is gonna be again regularly to check up on new posts

    Reply

  242. I seriously love your website.. Pleasant colors & theme.

    Did you build this web site yourself? Please reply back
    as I’m attempting to create my own personal website and want to find out where you got this from or what the theme is named.
    Cheers!

    Reply

  244. I’ve learned new things through your blog site. One other thing I would like to say is the fact newer computer system operating systems are inclined to allow extra memory to be played with, but they furthermore demand more ram simply to perform. If an individual’s computer can not handle much more memory as well as the newest software requires that storage increase, it might be the time to buy a new Computer. Thanks

    Reply

  248. Hello there! This post could not be written any better!
    Looking at this article reminds me of my previous roommate!

    He continually kept talking about this. I will send this article to
    him. Pretty sure he will have a very good read. Thank you for sharing!

    Reply

  253. I’ll immediately grasp your rss as I can not find your email
    subscription hyperlink or newsletter service. Do you have any?
    Please let me recognize so that I may just subscribe.
    Thanks.

    Reply

  256. Howdy! I could have sworn I’ve visited this site before but after going through
    some of the articles I realized it’s new to me. Anyways, I’m certainly delighted I stumbled upon it and I’ll be bookmarking it and checking back frequently!

    Reply

  258. Hello would you mind letting me know which hosting company you’re
    using? I’ve loaded your blog in 3 completely different web browsers and I must say this blog loads a lot
    faster then most. Can you suggest a good web hosting provider at
    a reasonable price? Cheers, I appreciate it!

    Reply

  261. In these days of austerity as well as relative panic about getting debt, some people balk resistant to the idea of making use of a credit card in order to make acquisition of merchandise and also pay for any gift giving occasion, preferring, instead to rely on a tried and trusted way of making repayment – cash. However, if you possess the cash there to make the purchase in whole, then, paradoxically, that is the best time for them to use the card for several causes.

    Reply

  266. I’ve been surfing on-line more than three hours lately, yet
    I by no means discovered any attention-grabbing article like yours.
    It’s lovely price sufficient for me. In my opinion, if all site owners and bloggers made
    excellent content as you probably did, the net might be much more useful than ever before.

    Reply

  268. I’ve been surfing on-line greater than three hours today, but I by no means found any interesting article
    like yours. It’s beautiful worth enough for me. Personally, if all website owners and bloggers made good content
    material as you did, the internet shall be much more
    useful than ever before.

    Reply

  272. I’ll immediately clutch your rss as I can not to find your e-mail subscription hyperlink or e-newsletter service.
    Do you have any? Kindly let me realize in order that I may subscribe.
    Thanks.

    Reply

  274. Woah! I’m really enjoying the template/theme of this blog.
    It’s simple, yet effective. A lot of times it’s very difficult to get that “perfect balance”
    between user friendliness and appearance. I must say that you’ve
    done a amazing job with this. Additionally, the blog
    loads super fast for me on Internet explorer. Excellent Blog!

    Reply

  277. Hey there would you mind letting me know which webhost you’re utilizing?
    I’ve loaded your blog in 3 different internet browsers and I must say this blog loads a lot faster then most.
    Can you suggest a good internet hosting provider at a reasonable price?
    Thanks a lot, I appreciate it!

    Reply

  281. Hi, i read your blog from time to time and i own a similar
    one and i was just wondering if you get
    a lot of spam feedback? If so how do you prevent it, any plugin or anything you can advise?

    I get so much lately it’s driving me crazy so any help is very much appreciated.

    Reply

  283. You made some really good points there. I checked on the
    web for more info about the issue and found most individuals will go along with your views on this site.

    Reply

  288. I have noticed that charges for on-line degree experts tend to be a great value. For instance a full Bachelor’s Degree in Communication in the University of Phoenix Online consists of Sixty credits from $515/credit or $30,900. Also American Intercontinental University Online comes with a Bachelors of Business Administration with a full school requirement of 180 units and a tariff of $30,560. Online degree learning has made getting the certification much simpler because you can certainly earn your degree in the comfort of your home and when you finish from office. Thanks for other tips I have learned through your web-site.

    Reply

  290. It is perfect time to make some plans for the future and it is time to be happy.

    I have read this post and if I could I want to suggest you few interesting things or advice.
    Maybe you can write next articles referring to this article.
    I desire to read even more things about it!

    Reply

  294. It is the best time to make some plans for the future and it is time
    to be happy. I have read this post and if I could I want to
    suggest you some interesting things or advice. Perhaps you can write next articles referring to this article.
    I want to read more things about it!

    Reply

  301. Hey there would you mind letting me know which web host you’re utilizing?
    I’ve loaded your blog in 3 completely different web browsers and I must say this blog loads a lot faster then most.
    Can you recommend a good web hosting provider at a
    fair price? Thanks, I appreciate it!

    Reply

  308. Hi there would you mind letting me know which hosting company you’re
    utilizing? I’ve loaded your blog in 3 different web browsers and I must say this blog
    loads a lot faster then most. Can you suggest a good internet hosting provider at a fair price?
    Cheers, I appreciate it!

    Reply

  310. I will immediately snatch your rss as I can’t in finding your e-mail subscription hyperlink
    or newsletter service. Do you have any? Please let me
    understand so that I could subscribe. Thanks.

    Reply

  312. I’ve been browsing online greater than 3 hours
    these days, but I never discovered any attention-grabbing article like yours.
    It is pretty worth enough for me. Personally, if all webmasters and bloggers
    made good content material as you probably did, the
    internet shall be much more useful than ever before.

    Reply

  315. It’s perfect time to make a few plans for the longer term and it’s time to be happy.
    I’ve read this publish and if I may I desire to
    suggest you some interesting things or tips.
    Maybe you could write subsequent articles referring to this article.

    I wish to read more issues approximately it!

    Reply

Leave a Reply to Williamedunc Cancel reply

Your email address will not be published. Required fields are marked *