How Advisors Can Help Athletes Overcome Sudden Wealth

Whether it’s March Madness, the Super Bowl or the World Cup, Advisor’s athlete clients are overflowing with wealth and opportunities to make more money while reaching the pinnacle of their careers.

with NCAA tournament Soon, some of college basketball’s biggest stars will have a platform to showcase their talents. It could be a stepping stone to a multi-million dollar deal.

The big question for athletes and wealth advisors alike is how to approach these holes and the risks that come with it.

“Players have so many things I like to call ‘coming in,'” he said. mason championa financial advisor who is also the Global Sports and Entertainment Director of Morgan Stanley.

“If players don’t have the structure and protocol to support receiving that incoming call, it can be dizzying, confusing and difficult for players to handle,” he said. .

Sudden “entrance”—meaning a flurry of money and fame—tends to occur early in an athlete’s career. For example, being drafted into the big leagues or receiving a signing bonus.

And the big hits can come later in your career, “like the windfall associated with a second deal or a third deal,” Champion said.

“And sometimes that happens through off-field opportunities inherent in brand growth.”

Branding deals can be the most lucrative. This may include speaking, signings, media appearances, sponsorship opportunities, broadcast considerations, or a one-off license of his own brand.

next NCAA rule changes for 2021 Branding deals are becoming more common for young athletes as they allow college athletes to monetize their name, image and likeness while playing for their team. the flow millions of dollarsinstantly vaulting such athletes to high net worth status.

Louisiana gymnast and TikTok star Olivia Dunn (USA Today) report Last fall, worth an estimated $2.3 million at NIL ratings, is one prominent example of such a star.

Financial Planning spoke with three expert wealth advisors on how they can help young star players as the market to serve them grows. Here are some of our top takeaways.