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Financial prudence for elite athletes

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Summary

Coutts is working with some of the UK’s best-known sports personalities to manage their finances and plan for a sustainable future.

3 min read

To maintain their lifestyles after retirement, elite athletes must plan their finances carefully.

Everyone has a favourite sporting moment, whether it’s Geoff Hurst’s hat trick in the 1966 World Cup final or Andy Murray winning Wimbledon. The performances of our elite sportsmen and women inspire fans and fill stadiums every week.

For many athletes, reaching the top in their sport means financial security for the rest of their lives. Salaries at the peak of their careers can be huge and there are commercial opportunities and sponsorship deals with some of the world’s biggest brands. After years of training, most can look forward to a bright future for themselves and their families.

Yet two in five professional footballers, including some household names, find themselves in financial difficulties within five years of retiring from the game* according XPRO, a charity that helps former players. Those at the top in sports from tennis to boxing, golf or motor racing face the same pitfalls. At the height of their fame and earning power they may be inexperienced with money, distracted by the pressures of top-class sport and without the support they need. Short-term decisions around their finances may not turn out to be sustainable over the longer-term. 

“The performances of our elite sportsmen and women inspire fans”

Throughout our history Coutts has worked with some of the most influential names in sport. Today, our dedicated team of bankers and wealth managers help many of the UK’s most talented stars ensure that in the years ahead, when the roar of the crowd is a distant memory, they can still enjoy the fruits of their achievements. We help them get the balance right between spending and saving and to seize the opportunities offered by commercial contracts and image rights. Working with the athlete’s existing advice team, which may include their family, agent and other professional advisers, we start them thinking about the income they and their family will need in the future and how to achieve it. This might be by investing in buy-to-let properties or by developing an investment portfolio.

Matt Wotton, Team Leader for Private Banking within the Coutts Sports & Entertainment team, says: “In some respects it is a glamorous industry, but that can attract the wrong kind of advisers, who can be indiscrete and overly impressed by celebrity. We build strong durable relationship with our clients, and while we respect what they do we take a professional arms-length view. Our clients are frequently bombarded by ‘too good to be true’ investment opportunities and we are not afraid to advise them of potential pitfalls with our knowledge and experience of risk. We take a responsible long-term view and ultimately that can prove beneficial’

“Today, our dedicated team of bankers and wealth managers help many of the UK’s most talented stars”

We’re well connected within the sports industry, and if a client needs to strengthen their team of advisers we can introduce them to experts from our network who specialise in areas like pensions, wealth succession and estate planning, and philanthropy. We understand how careers develop differently in each sport and how they can be unexpectedly knocked off course by injury or a loss of form. Charity donations and requests for philanthropy need to be carefully managed so that sports stars don’t give more than they can really afford. We work with their other advisers to tackle the financial implications of unexpected issues, such as intrusive media coverage or unwise comments on social media.

This year we demonstrated our commitment to the industry as a major sponsor of the BT Sports Industry Awards, one of the biggest events in the industry’s calendar. Ultimately, we aim to add real value for our clients through our industry network and understanding, meaning they can maximise the wonderful opportunity they’ve been given while achieving true financial security that lasts way past their playing career.

 

*Source: http://xpro.org/research

Key Takeaways

Throughout our history Coutts has worked with some of the most influential names in sport. We help them get the balance right between spending and saving and to seize the opportunities offered by commercial contracts and image rights. Working with the athlete’s existing advice team, which may include their family, agent and other professional advisers, we start them thinking about the income they and their family will need in the future and how to achieve it.

Coutts Sports And Entertainment

Throughout our history, Coutts has worked with some of the most high-profile and influential names within sport, media and entertainment. Highly connected within our clients’ own circles, we understand the subtleties of their professional lives and provide flexible solutions designed to maximise opportunities as they arise.

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