How can a professional athlete protect their interests and preserve their wealth?

Hear from our Sports Manager, Adam, about his experience at ISC and his key takeaway from the event regarding protecting athletes interests.

“I recently attended the International Sports Convention, a flagship event at Tottenham Hotspur Stadium which attracts many influential leaders in the business world of Sport.

As Manager at Affinity Sports, I was keen to hear the latest trends in the industry and the event delved into some critical topics, including Broadcasting, Sponsorship, Fan Engagement and Tourism.

A standout topic for me was Sports Integrity and Governance, which outlines some of the challenges athletes face in the industry and highlights the importance of safeguarding an athlete’s interests.

At Affinity Sports, our focus is protecting our clients’ interests by assisting them in managing the physical, emotional, and financial pressures of working in sports.

Let’s dig a little deeper into why and how an athlete should protect their interests…

Why should an athlete safeguard their interests?

Unfortunately, in the sports industry, there are many alarming case studies of professional athletes who have misplaced their trust in professional advisors which are not acting in their best interests. It is known in the sports industry that agents focus on monetising client relationships.

A prime example of this is a client being left in the dark on how their money is being managed, invested or persevered. In addition to this, athletes place their trust in and can be influenced by their inner circle, such as friends or family members, who lack professional expertise to provide proper guidance.

Fortunately, athletes are becoming more financially literate, and many athletes are seeking professional wealth management advice at an earlier stage in their career. This is due to the abundance of opportunities for athletes in the present day, such as sponsorship deals and brand endorsements, which have skyrocketed the average net wealth of a professional athlete higher than ever before.

Depending on their sport and success, athletes may find their financial affairs complicated by diverse income streams and business interests capitalising on their fame and network. To effectively manage their wealth and to protect their status, athletes require support handling their media affairs, including public relations and building their personal brand.

Social media has changed the brand partnership model, there are many more opportunities for athletes and whilst some deals are enticing, they may not align with the athlete’s interests. The athlete’s representative must understand what the athlete believes in and wishes to be associated with in order to co-ordinate their affairs which align with their values and vision.

How can an athlete protect their interests?

Source a credible advisor 

Due to the unique nature of an athlete’s earning circle, a tailored approach to financial management is essential. Athletes require a range of financial services including, a bespoke investment strategy and private wealth planning.

A family office is a bespoke wealth management advisory firm catering to the affluent and provides a unified approach to overseeing all facets of a family’s financial and wealth strategy. This model of wealth management is ideally suited to a professional athlete who is a unique type of High-Net-Worth Individual that requires a tailored strategy to meet their individual financial and lifestyle goals.

A family office will have a proven track record of working closely with High-Net-Worth families, managing large portfolios of wealth and luxury assets. This demonstrates their integrity which is essential when selecting an advisor.  They will also hold a network of trusted partners to assist with managing all assets of the athlete’s portfolio.

Choose a credible representative

Choosing a representative is potentially the most important choice for an athlete as they will determine entirely how they are managed and which parties they engage with.

The main role of an agent is to maximise their client’s success, putting their own incentives aside. They assist with all aspects of the athletes financial and lifestyle needs, including sourcing sponsorship deals, implementing their financial strategy and growing the athlete’s personal brand.

From drawing up contracts and negotiations to selecting a legal counsel and establishing image rights, a credible agency will ensures that all parties engaged with align with their client unique goals. Their priority is to protect their clients media status and grow their financial portfolio.

Key services for a professional athlete

A family office will hold a specialist team of experts who will provide the athlete with credible, unbiased guidance tailored to their unique needs and goals. They will implement an integrated strategy, coordinating all aspects of wealth management, from investments to tax planning, under one unified approach and emphasise the importance of deploying a long-term game plan, rather than quick short-term gains.

This will include various techniques such as asset protection and estate planning, which preserve an athlete’s financial legacy against potential threats and ensure the security of accumulated wealth through years of hard work and dedication.

In addition to protecting wealth, it is vital for an athlete to protect their rights and leverage their status. An experienced legal counsel will assist an athlete with protecting their image rights, trademarks and GDPR, to protect their status in the media.  

Affinity Sports

At Affinity Sports, we provide a range of services to support athletes at all stages of their career. We are a regulated, global fiduciary provider and assist High Net Worth Clients across a range of sectors, including yachting, aviation, trusts and multi-family office.

In sports, we act as our clients’ personal family office, understanding their needs, wishes, and goals. We deploy a tailored approach to financial services and lifestyle management services. We provide in-house private wealth structuring and range of financial and lifestyle services through our network and partners. Our agency services also enable us to directly represent professional athletes in negotiations and settlement of terms with various third parties working in the sporting community.

A global and corporate wealth partner, we act as an independent organisation that works closely with agents, IFAs and other industry stakeholders to source and structure stakeholder arrangements to safeguard our clients’ interests. We have established a network of partners that we trust and ensure that parties are working in the best interest of our client.”

Contact us

Adam works closely with professional athletes to understand their unique goals and provides guidance on how they can effectively protect their interests, covering all aspects of financial and lifestyle requirements.

At Affinity Sports, we preserve our client’s wealth and leverage their status to secure a lasting financial legacy.

Contact Adam for a one-to-one conversation today to discuss your unique requirement