In the competitive world of professional sports, athletes are celebrated for their skill on the field, court, or track. It is, however, crucial for athletes to consider how they're going to navigate the game of wealth beyond their playing years.
We were recently quoted on The Times, where our research showed that the average salary for a Premier League footballer has reached £.3.6 million a year, more than twice the average in the next highest paid league, Spain's La Liga.
We recognise that a career in sports is often characterised by limited, yet lucrative earning periods. The continuous risk of injury as well as the awareness that there will be a need to build a life after retiring from competing comes with unique financial challenges and opportunities.
Lubbock Fine Wealth Management offers bespoke wealth management services designed to optimise the sportsperson's financial assets and help ensure their earnings last a lifetime.
Early career planning
One of the most common pitfalls we unfortunately see for athletes is neglecting financial planning during the early years of their career. Establishing a solid financial foundation early on can make a significant difference in the long run. Creating a budget, getting into the habit of saving a portion of earnings, and investing wisely are fundamental steps that can set the stage for financial success.
LFWM can help maintain a balanced and sustainable lifestyle to prevent financial stress and foster long-term financial stability.
Diversification of income streams
Athletic careers can be unpredictable, with fluctuating income levels, potential injuries or unexpected events, all of which often impact an athlete's ability to generate a consistent income. In addition, a sportsperson also tends to have a relatively short career window compared with other professions.
At LFWM, we help athletes make the most of their earnings during this limited window by ensuring that they have diverse income streams. This could include investments in stock markets, properties, endorsement deals, and business ventures. This, in turn, allows them to maintain their lifestyle and achieve their long-term financial goals beyond retiring from sport.
Risk management
Although all athletes are usually fit and healthy, they typically depend heavily on their physical ability to compete and earn an income. It is therefore important for athletes to protect themselves against unforeseen circumstances that a career-ending injury or premature death can have on them and their family. Insurance policies can help protect against the financial constraint that such an event is likely to cause for the sportsperson and their family.
There are many different types of insurance, and the nature of an athlete's job requires specialist advice. LFWM can help navigate the unique requirements of a sportsperson and advise on suitable insurance policies to ensure the financial impact of a horrible event is minimal.
Retirement planning
Athletes often have two retirements: the first is when they hang up their playing boots and second is when they stop working altogether.
Having a safety net will ensure the athletes have the opportunity to pursue further education or acquire new skills without compromising on their ability to maintain lifestyle and allow for a smoother transition into the new career after they have stopped competing.
Establishing a retirement fund and regularly contributing into it are important steps in planning for changes in income levels. In addition, now that we are living a lot longer and are therefore likely to have a much longer retirement, it is vital to put plans in place to ensure a comfortable retirement.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
