Team Player

During his four years as a highly paid quarterback for the Tampa Bay Buccaneers, Trent Dilfer has seen his share of controversy. But while he’s been accused of being everything from a brash underachiever to an overpaid bust, he’s always had a firm grip on his finances.

“I believe that God has given me a responsibility in giving me a very large amount of money at a very young age,” said Dilfer, 25, who will earn $4 million this year from the NFL team alone. “And it’s a responsibility to handle His money in the way He would like me to handle it.”

This season Dilfer’s faith in his abilities has finally allowed him to blossom into one of the league’s top quarterbacks.

He now finds himself perched at the cusp of superstardom--and even more lucrative earnings.

For starters, Dilfer continues to draw on his eight-year, $16.5-million contract, which he signed after being drafted by Tampa Bay in 1994 as the sixth pick in the first round of the NFL draft. By season’s end, Tampa Bay will exercise a two-year buyback of his contract, resulting in a $4.8-million signing bonus and a base salary of $1.7 million in 1998 and $1.9 million in 1999, in addition to performance incentives.

Dilfer also collects sizable sums from investments and endorsement deals with such brands as Nike, as well as his work as a radio and television sports commentator for Tampa-based media outlets.

What’s more, this year’s reversal of fortune for both Dilfer and the Bucs--they got off to a blistering start but have since slumped--is resulting in numerous calls from firms eager to establish new endorsement arrangements with the quarterback.

Dilfer is negotiating with an automobile manufacturer as well as contemplating starting his own small business, such as a restaurant or a health club.

A born-again Christian since college, Dilfer said his faith leads him to tithe between 10% and 15% of his gross income to charities ranging from the Fellowship of Christian Athletes to the United Way and Big Brothers/Big Sisters of America. Before deciding how to allocate his money, he often prays for guidance.

“I really need to pray for wisdom and discernment to know which charities to give to and which ones not to,” Dilfer explained. “It’s not like God says, ‘Trent, give $10 there,’ or ‘Trent, put it in this investment.’ ”

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But when it comes to the day-to-day management of his portfolio, Dilfer puts his trust in his financial advisors--although he doesn’t allow any single member of his money team to call all the shots.

The quarterback subscribes to the idea of financial checks and balances. Those who work for him are run through a background check to make sure they don’t have a criminal record or a history of financial improprieties.

Dilfer’s concerns about his money are well-founded.

Professional sports is replete with tales of young athletes falling into the hands of dubious--if not criminal--financial advisors.

This August, for example, saw John W. Gillette Jr., an investment advisor for numerous football and baseball players, charged with grand theft and forgery for allegedly filching more than $9 million from athletes such as San Diego Chargers linebacker Junior Seau and former Padres pitcher Greg Harris.

“I have two friends who were hit quite significantly by this, and these are smart guys,” Dilfer said. “Peace of mind comes from using checks and balances, and the quality of people working for me.”

It’s particularly important that Dilfer trust his advisors, since he acknowledges taking something of a hands-off approach to managing his ever-more-complex financial life.

While all financial maneuvers--from investments to endorsements--ultimately rest on his say-so, most of the real work is done by his management team. Dilfer is convinced that no good comes from thinking too much about his finances.

“I really see a lot of people who are consumed by how much money they make, and if they make $5 million a year, that’s not enough,” Dilfer said.

The man Dilfer describes as the coach of his business team is H. Koal, who coordinates investments from cash savings to an investment in a Colorado mini-mall.

The other key member of Team Dilfer is John Higginbotham, a senior vice president with Smith Barney in Fresno.

Higginbotham describes the investment strategy he’s created for Dilfer as a pyramid. At the bottom rests a combination of cash, certificates of deposit and Treasury notes encompassing about 40% of the football player’s net worth.

It sounds conservative, but considering the rough-and-tumble reality of Dilfer’s livelihood, it’s anything but. Football players can find their careers ending abruptly after injuries.

The average professional football career lasts only two to four years, compared with seven years for basketball players, for example.

“We hope and pray his career will be full of success and longevity, but we need to prepare for the possibility of everything not working out the way we want it to,” Koal said.

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The remainder of Dilfer’s portfolio is in stocks such as Microsoft and Intel, and numerous variable annuities, mainly invested in mutual funds such as Templeton World Fund.

Why variable annuities? For tax-deferred growth, a particularly valuable bonus for people at the highest tax bracket.

As long as the funds remain in an annuity, the income he’s earning on his initial investment cannot be taxed.

His investment strategy notwithstanding, Dilfer said he’s most concerned that his money be put to good use.

His priorities are charitable giving and ensuring the fiscal well-being of his immediate family--his wife, Cassandra; his 1 1/2-year-old daughter, Madeleine; and the new child they expect in mid-November--as well as extended family: siblings and step-siblings, parents and stepparents, in-laws and their families.

“I help everybody in my family. . . . One of the greatest joys in my life is giving money to people I love,” Dilfer said.

Between taxes, advisor commissions, charitable donations and family gifts, Dilfer estimated he’s taking home only 38 cents of every dollar he earns.

But it’s still enough to provide for his needs, be they moderate or extravagant. Dilfer said his wife has yet to adjust to their wealth; although she finally stopped clipping coupons, she still checks for sales and buys the cheaper brand of orange juice from the supermarket.

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Dilfer, on the other hand, has begun to enjoy spending some of his money. He likes to fly first class and stay in luxury hotels.

He estimated he spends $30,000 a year on golf, indulging in state-of-the-art equipment and several exclusive country club memberships.

Dilfer remains grounded despite his successes on and off the field.

“My worth isn’t in how much money I make or how many Super Bowls I get to,” Dilfer said. “As a Christian, my value in life is my relationship with Jesus Christ.”

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Helaine Olen, a regular contributor to The Times, is a Los Angeles-based freelance writer and can be reached on the Internet at holen@aol.com. The regular money make-over column does not appear today. To participate in Money Make-Over, send your name, age, phone number, income, assets and financial goals to Money Make-Over, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053.

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Game Plan

* Investor: Trent Dilfer

* Base income: An eight-year, $16.5-million contract for playing football. Endorsements, performance incentives and investment income will add to that.

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* Money philosophy:

His religious faith leads him to tithe between 10% and 15% of his gross income to charities.

He doesn’t give any one financial advisor full control.

He invests a high percentage of his money conservatively, since his football career could end suddenly.

He has large investments in variable annuities for tax purposes.