Why Every Professional Athlete Needs a Wealth Protection Strategy

Imagine earning millions during your career only to lose it all due to poor planning. Are your assets truly protected? When it comes to the earnings of a professional athlete, asset protection should be a top priority. Determining an appropriate strategy early in one’s career is key.

A well-known example highlighting the importance of early planning involves Moroccan professional footballer Achraf Hakimi. During his divorce proceedings, it was revealed that many of his assets were held in his mother’s name, ultimately shielding them from the settlement. While this approach is not one that advisors would typically recommend, it underscores the broader point: conversations around wealth protection must begin early.

There are a variety of legal and financial strategies that can be implemented to safeguard wealth and plan for the future.

Establishing Limited Liability Companies (LLCs), forming trusts, and engaging in proper estate planning are important considerations for professional athletes—whether they’re just starting out or nearing the end of their careers. For athletes that are independent contractors, such as tennis players, golfers, and collegiate athletes may also benefit from establishing an LLC. Forming an LLC allows for the separation of personal assets from business debts and liabilities. It can also provide protection from lawsuits and creditors as long as the corporate veil is not pierced.

Setting up a trust can help shield assets from lawsuits, creditors, and divorce settlements. Unlike wills, trusts are not public records, offering an added layer of privacy. Trusts also help avoid probate and ensure a smooth transfer of wealth to family and loved ones.

Whether you are rookie or a veteran, it is never too late to start the conversation with your personal advisors to determine whether a change to your financial structure makes sense for you.

Withum’s multidisciplinary approach ensures that athletes receive proactive, strategic guidance designed to protect their earnings and support long-term financial success.

Author: Alan Iosue | [email protected]