With Cristiano Ronaldo topping the 2024 list of the world’s highest-paid athletes, professional sports men and women have the potential to earn a lot of money.
However, the average career of a professional sports person is relatively short. For instance, a footballer’s career spans just eight years, so it’s important to think about protecting short-term gains for long-term benefits. This can be easier said than done and it’s important to make sure you have the right people around to support you.
Who’s in your corner?
High-net-worth (wealthy) individuals – often classified as people with a net worth of over £1m – will usually have a team of advisors around them to help manage their wealth. Sometimes it can be hard to know who to trust, especially when it comes to money, so it is crucial to ensure people are acting in your best interests, not their own.
A popular way for professional athletes to protect their wealth is to place it in a trust. This is where you give your assets to a professional trustee who then has a legal duty to protect and enhance your wealth for your benefit, and for anyone else that you would like to benefit (eg your family). A trustee is required to think about what is best for you now, and what is best for your future.
Benefits of appointing a trustee
- Responsibility: Trustees take the administrative burden to ensure that you are compliant with all relevant legislation, saving you time and stress.
- Contacts: Trustees have a strong network of specialists that can help you with anything you need. Your trustee will do all the work finding specialists while being your central point of contact.
- Support: A quick build-up of wealth can be overwhelming, and it can be difficult to know what decisions will be beneficial to you. A trustee takes a calm approach, providing experienced support to ensure the wealth you earn during your professional sports career is protected.
- Asset protection: Trustees structure your assets to ensure they are protected for life after professional sport. Whether you have standard assets like investment portfolios and property, or non-standard assets like yachts, aircraft, art or cryptocurrency/NFTs, a trustee will make sure it is safe.
- Privacy: Appointing trustees creates a separation between you and your assets. This can protect your assets from legal claims, such as those arising from debts or divorce. Additionally, it ensures that your ownership of these assets remains confidential, preventing the public or media from gaining access to this information.
- Tax planning: Tax regulations can be complex, particularly if you have assets in multiple countries or work internationally. By collaborating with expert tax planners, your trustee will develop tax-efficient strategies that comply with all relevant laws.
- Partnership: Trustees work in partnership with you. When you appoint a trustee, you will be able to express your wishes for the long-term goals of your wealth and your trustee will regularly check that your structures are still appropriate, or whether your wishes have changed.
Finding the right trustee
Your relationship with your trustee will potentially last your entire life so it’s important to find someone you trust to look after your wealth. When choosing a trustee, you should think about their reputation, experience and whether you like them. It is worth taking time to find the right trustee for you, then they can take on the stress and responsibility for your financial future.
Simon Murphy – Associate Director, Saffery Trust