Here's how Financial Management and Branding Revived Joe DiMaggio's Fortune After his Decline
Joe DiMaggio, a baseball legend and cultural icon, is remembered as one of the greatest players in the history of the sport. However, his later years were marked by financial struggles that seemed incongruent with his legendary status. Despite earning substantial amounts during his illustrious baseball career, DiMaggio found himself living a modest life in a Florida apartment by the early 1980s.
From fame to financial struggles in later in life
In 1983, at the age of 68, Joe DiMaggio's net worth stood at a mere $200,000, equivalent to around $450,000 today. This financial decline was a stark contrast to his glory days on the baseball field, where he had earned a total of $632,250 throughout his 13-season career. Despite earning a considerable sum for his time, various factors, including failed marriages and poor business management, contributed to DiMaggio's dwindling financial status.
Living in a cheap Florida apartment and driving a modest Toyota, DiMaggio adhered to a frugal lifestyle. His fear of spending money was evident in his reluctance to use the air conditioner and his practice of wearing clothes gifted to him. DiMaggio's annual budget of $10,000 reflected his cautious approach to money, emphasizing his financial restraint even in seemingly trivial matters like dining out, where he would invariably bring home leftovers.
Chance encounter with Morris Engelberg
In 1983, a fortuitous meeting with Morris Engelberg, a highly capable lawyer with a clientele that included wealthy individuals like the Gettys, marked a turning point in DiMaggio's financial narrative. Friends arranged for DiMaggio and Engelberg to have brunch, during which DiMaggio expressed concerns about a potential cut in his endorsement salary from Bowery bank. Engelberg, sensing an opportunity, offered to act as DiMaggio's agent and investigate the matter.
Engelberg not only prevented Bowery from cutting DiMaggio's salary but successfully negotiated a substantial raise. Delighted with the outcome, DiMaggio hired Engelberg on the spot as his personal business manager, initiating a partnership that would define the remainder of his life.
Revamping DiMaggio's sources of income
Morris Engelberg immediately delved into DiMaggio's financial affairs, discovering that one of America's most celebrated figures was worth a mere $200,000. Recognizing the potential for improvement, Engelberg set out to enhance DiMaggio's income streams. Initially earning $10,000 per autograph signing session, DiMaggio's fees were quickly raised to $25,000, then $50,000, and eventually skyrocketed to a guaranteed minimum of $150,000 per session.
One of Engelberg's significant achievements was securing a deal with Score Board, a memorabilia company. In exchange for signing 1,000 baseballs and 1,000 photographs per month—work that required just two days—DiMaggio received an astounding $9 million over two years. This deal, equivalent to $20 million today, showcased Engelberg's ability to leverage DiMaggio's iconic status into lucrative opportunities.
Unconventional business relationship
The DiMaggio-Engelberg business relationship was unconventional, raising eyebrows among Joe's family members. Despite Engelberg's remarkable financial management, he declined the standard 10% manager's fee, foregoing millions of dollars. This unusual arrangement, characterized by Engelberg's seemingly selfless dedication to his client, was fueled by his desire to be friends with DiMaggio and ensure his happiness.
Legacy of wealth
By the time of Joe DiMaggio's death in 1999 at the age of 84, his financial landscape had undergone a remarkable transformation. Thanks largely to Morris Engelberg's strategic financial management, DiMaggio's estate was valued at a minimum of $40 million, with estimates suggesting it could have been as high as $80 million. This financial windfall was a testament to Engelberg's ability to reinvigorate DiMaggio's earnings and secure his financial legacy.