By Khalil Garriott
When you’re singularly focused on excelling at a sport for most of your life, you can’t be expected to be a financial expert without some help. Couple that with the perception of being an easy target — because of the exorbitant amount of money flowing in professional sports — and you have athletes who have become vulnerable.
JPMorganChase, spotting a need to help athletes manage their financial lives against a backdrop of short careers and unexpected retirements, recently launched a star athletes council. With most pro athletes retiring before they turn 35 and roughly one out of every six NFL players declaring bankruptcy within a dozen years of hanging up their helmets, financial education is paramount.
The world’s biggest bank by market cap is partnering with some of the biggest names across the sports landscape. Dwyane Wade, who won a trio of NBA championships with the Miami Heat, is chairing the council. He’s joined by many of the best to ever to lace them up in their respective sports: seven-time Super Bowl champ Tom Brady, five-time Olympic gold medalist Sue Bird, four-time WNBA MVP A’ja Wilson, and two-time World Cup champions Alex Morgan and Megan Rapinoe among them.
The council’s star power should bolster the message’s resonance.
“Having the right educational resources and guidance is critical to making smart decisions about money as your career evolves,” Wade says. “You need people you trust, and you need to take the time to understand where your money is going.”
The financial advisory initiative is serviced by those who understand the unique position of professional athletes, who face unique challenges and opportunities. JPMC advisors who have been athletes themselves, or who have worked with athletes, are servicing the council.
But the client base isn’t just the ultrawealthy of the sports world; athletes across all income levels, ages and sports are the target demos. An underserved segment of athletes — who aren’t household names and might never be — need help, too. Less than 2% of collegiate athletes go pro.
Over the course of five years since the Supreme Court’s landmark ruling around name, image and likeness, much has evolved in that space. High school and college athletes currently enjoy peak earning potential — which means their need for guidance is greater than ever. JPMC wants to teach them good money behaviors as early as possible.
New York Knicks All-Star point guard Jalen Brunson says, “My parents taught me early: Take care of your responsibilities first. Save your money. Don’t try to impress people.”
Cautionary tales abound of athletes suddenly falling into large sums of money, then blowing it all. JPMC believes financial education is the antidote for these mistakes, and the newly created council exists to help limit those headline-grabbing stories in the future. For this group, being informed is currency itself.
“If you don’t manage your money, it’ll manage you,” Brady says.
