April 16, 2015
Is It Fun to Have a Lot of Money to Spend?
There are a lot of sports metaphors in finance. How about one more? “Is it fun to have this much money to spend?” Jacksonville Jaguars GM Dave Caldwell was asked that question recently. With plenty of rollover cap space from last year, he had money to burn during the NFL’s free agency period. But was it fun? Caldwell wasn’t so sure, according to Grantland’s Robert Mays.
The NFL market has some things in common with the financial market, especially during the free agency period, when teams who haven’t met their established salary cap can bid on players’ contracts. A team more likely to make it to the Super Bowl may be able to pay less for a better player, because who doesn’t want that cool ring? The Jacksonville Jaguars, no disrespect intended, are not one of those teams. But this year, they had the cash.
With that cash came a lot of responsibility. Caldwell had to make decisions about how to invest, knowing his choices could have long-range effects on the franchise. Was it fun?
“I wouldn’t call it fun. I give a lot of credit to our scouting department, our finance department, Tim Walsh and John Idzik,” the third year GM said. “They’ve done a great job over the last three or four days, including our coaching staff. It’s been fun from a team standpoint and everyone working together. The last twelve to twenty-four hours has been quite stressful.”
It may not have been easy sailing, but Caldwell and his team got the job done, and it looks like they did pretty well, though they won’t know for sure until the season gets underway. The decisions they made during the free agency period will also show their effects in the future, as Caldwell and the rest of the staff build their team.
Building a team, and making decisions you know will have long term repercussions, is a little like making a strategic financial plan. David Caldwell and the Jaguars staff work together, each bringing individual knowledge and experience, to make that long term plan. And they’ll likely modify the plan over the years, analyzing the team, their goals, and the players at every turn. This year, they went with the “Scared Money Don’t Make No Money” school of thought, but that could change at any time, depending on any number of factors.
“Scared Money Don’t Make No Money” may not be your philosophy. Our philosophy is a little more nuanced, though it might not play as well in lyrics. We believe your money is different from anyone else’s, and you deserve a long-term, personalized plan. Gainplanners are on your team, and our passion is using our experience and knowledge to help you make decisions about your financial future. We’ll be with you every step of the way, helping you decide how to invest your money to better meet your goals. The cap space? That’s up to you.