Finances a Blind Spot for Athletes


Only one out of every three professional athletes is focused on the business side of his or her career, according to Changing the Game Plan, a white paper by CPA firm Rothstein Kass.

The percentage is significantly higher, over 62%, for older athletes, suggesting they tend to become more conscious of their personal brands as their careers progress.

Professional athletes have a relatively short time to amass wealth through salary and endorsements, Rick Flynn, principal in Rothstein Kass’ Family Office Group, said in a news release. Failing to adequately plan for the future can leave athletes without the financial flexibility they need to pursue outside interests in the long term.

Athletes participating in the study had a minimum net worth of $5 million, including contractual salaries, bonuses, winnings, endorsements and other sources.

Among other notable findings, nearly 70% of athletes enjoy a luxurious lifestyle, though fewer than 27% of all athletes and fewer than 15% of younger athletes are concerned about financing those lifestyles.

Source: Rothstein Kass, www.rkco.com.

SPONSORED REPORT

Get your clients ready for tax season

These year-end tax planning strategies address recent tax law changes enacted to help taxpayers deal with the pandemic, such as tax credits for sick leave and family leave and new rules for retirement plan distributions, as well as techniques for putting your clients in the best possible tax position.

RESOURCES

Keeping you informed and prepared amid the coronavirus crisis

We’re gathering the latest news stories along with relevant columns, tips, podcasts, and videos on this page, along with curated items from our archives to help with uncertainty and disruption.