For Baker Mayfield it’s been a tumultuous few years. As the NFL’s #1 draft pick in 2018, Mayfield landed at the worst franchise in American Football, the Cleveland Browns. He signed a $32 million contract with the Browns, along with inking a whole host of endorsement deals. His rookie year was positive, as the quarterback led the Browns to their best record in over a decade and broke the record for the most touchdowns thrown by a rookie.
Despite the high expectations for his second season, 2019 was a step back for Mayfield. A new head coach came in and the Browns went backwards, as Mayfield threw almost as many interceptions as touch downs. In 2020, Mayfield and the Browns recovered. The Browns made their first playoff appearance since 2002, and won their first playoff game since 1994. Mayfield looked like he might be the face of the franchise for a long time.
Expectations were high in 2021, but Mayfield and the Browns sunk again. Mayfield spent most of the season injured, playing in a harness. In frustration, after he threw an interception, Mayfield attempted a tackle he shouldn’t have, and ended up with a torn labrum (a rim of cartilage in the shoulder). The tear affected his ability to throw, and despite his increasing lameness, he couldn’t be convinced to stop playing and head for surgery early. The pressure was on with the 5th year option on his contract coming up, and he clearly didn’t want to give up his job.
Regardless, in 2022 the Browns wanted to move on. It was quite the indignity; Mayfield was the first #1 draft pick in some time to have the team that drafted him not pick up the 5th year option of his contract. After recovering from labrum surgery, Mayfield was signed by the Carolina Panthers. Unfortunately, he played poorly and was benched. Towards the end of the season Mayfield asked to be released. Needing a quarterback, the depleted Los Angeles Rams signed him, offering an opportunity for Mayfield to showcase himself. He won his first game with a miracle play in the last minute, but otherwise struggled.
This season Mayfield signed with the Tampa Bay Bucs on a low, incentive based deal. His base salary is $4 million, when the top quarterbacks in the league are earning $40-50 million annually. And it’s probably his last chance. Don’t perform and there’s no prospect of big contracts in his future.
Positively, Mayfield has enjoyed a good preseason and been named as the Bucs starting quarterback for 2023, but if you’re thinking this is a football story, it’s not.
The same week Mayfield was named as starter for the Bucs, another piece of less positive news emerged.
Attorneys for Baker and Emily Mayfield filed a petition in Travis County District Court to request information regarding the potential misappropriation of $12 million by an Austin investment firm.
The petition was filed Tuesday in the 250th District Court and attorneys are asking the defendants — Camwood Capital Management Group, Camwood Ventures, Texas Contract Manufacturing Group, Unitech, Apex Machining and Lor-Van — to turn over financial records from 2018-2023 and for witnesses to provide oral depositions to help the Mayfield’s figure out where their money has gone over the course of five years.
“Petitioners simply do not know if their money has been properly and competently invested, has been stolen or otherwise misappropriated, or something in between,” the document stated.
The kicker? Camwood, the Austin investment firm in question, was founded by Baker Mayfield’s family. His Father and Brother are key people at the firm. When asked about the petition by the media and whether it was a distraction, Mayfield kept it brief.
“I’ll say this, it’s been a long time coming for that. I’m not going to comment on any details but, yeah, I’ve been dealing with that stuff for years now. So, mentally I’m in a much better head space. So, yeah, we’re ready to roll.”
The fact Mayfield was questioned about distractions is no coincidence. Despite it being a physical game, the quarterback position requires mental acumen, a strong memory, and sharp decision making. Quarterbacks need to memorise a complicated playbook for their own offence, study defences to read them in a game, and process information quickly.
As Hall of Fame quarterback Peyton Manning recently described it in the Netflix documentary series “Quarterback”:
“I’m a little biased, but for my money, there’s simply not a harder position in sports than being an NFL quarterback. As a quarterback, every single play you’re the focus. You have to know everyone else’s job just as well as your own. You can’t hear half the time, the weather’s bad, you’ve got 300-pound linemen trying to kill you… And there’s always someone waiting to take your job.”
In the same series, quarterback Kirk Cousins shows how he uses neurofeedback to train his brain and maintain focus, while Marcus Mariota shows his routine of being quizzed on plays by his wife.
It’s the reason why quarterbacks are so well paid. It’s a high-pressure job only a select few are successful at over the long term. It requires commitment and distractions aren’t welcome. The fact Mayfield is petitioning to find out where a significant amount of his money went is a massive failing by those advising him. The headaches, stress, and distraction could have materially affected his career.
One can only speculate from afar, but concerns over money and the looming 5th year option on his contact in 2021 may have weighed on his mind, and been behind the decision to play on injured. The fact the missing money was being managed by family members would have complicated the issue.
A 2019 article on Mayfield’s financial management highlighted he was aware of how important maintaining his football focus was.
He said having the business and financial infrastructure in place to protect his earnings, and bolster them with sound investments, allows him to concentrate on football and not worry about the money catastrophes that have bankrupted other star athletes — including prominent former Browns quarterback Bernie Kosar.
The article then asked Mayfield’s brother Matt, where some of Mayfield’s money was being invested, and it was alarming.
Camwood has traditionally invested in precision manufacturing companies with annual revenue of $5 million to $50 million, but in 2018, it launched a venture capital arm called Camwood Ventures that invests in growing young companies. Mayfield has put some of his money through that investment vehicle.
Small private manufacturing companies, and venture capital. It lines up with information in the petition Mayfield and his wife filed. Mayfield’s father and brother may argue they have expertise in these areas, but small private manufacturing companies are niche and undiversified, making them high risk. As far as venture capital, despite high profile successes, the failure rate of start up companies can be 90%. Most investors don’t see a return.
Matt Mayfield made much of ‘Team BRM’, an entity at Camwood put together specifically to manage Baker’s business and investment interests. But there seems to be little insight into who they were advising. Mayfield won the lottery when he was drafted at #1. He earns millions of dollars a year, but his job requires a clear head, and involves being chased around by large men who can seriously injure him. He does not need the risk or complexity that comes from investing in start ups or a narrow group of private companies in one sector.
For Mayfield’s advisers, the most important thing should have been protecting the money, accounting for the risks of his vocation, and it not being a distraction. Mayfield would have trusted his family, but trust doesn’t equal a robust investment philosophy. Trust also doesn’t guarantee a return, but misunderstanding personal and investment risk increases the likelihood of allocating money to the wrong asset classes and financial loss.
Contrary to what people may believe, good financial or investment advice is not about chasing high returns. Good advice is about ensuring someone’s financials align with their circumstances. Consideration needs to be given to stage of life, employment, family, earnings, and existing wealth, among other things. Getting it right should allow someone to forget about money and focus on what’s most important.
That could be spending time with their family, enjoying their hobbies, running their business, or in Baker Mayfield’s case, allowing him to perform at his optimum in a high-pressure job as an NFL quarterback.
This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.
