It is key for advisers to educate football players about their financial futures to prevent them falling victim to scams, according to guests on the latest FT Adviser podcast.
Mark Tueart, managing director at LIFT-Sport, and Conrad Balatoni, associate partner practice at St James’s Place, discussed why footballer players are targets for financial misconduct and scams and the role advisers play in helping them make good decisions.
Tueart said: “The starting point is education. We are speaking to unsophisticated investors. They are young people that have potentially come into lots of money, and are ill equipped to handle that.
“The first thing I start with is planting good seeds, good financial housekeeping."
Balatoni discussed how he tries to explain to players that just because a certain investment worked for one player doesn’t mean it will work for another.
“A lot of players speak to me about property but I don't think they realise that actually, a lot of footballers go bankrupt because of the tax liabilities. I'm always educating them and explaining to them that these are the tax consequences of property.
“Back in the day, this sort of investment was maybe more favourable, and it's not to say that it's not a good investment, but you do need to be aware of what can potentially happen.
"That's why speaking to an adviser can really help players with the diversification of what we can offer,” he added.
Both Balatoni and Tueart said it was challenging to try and get players to think about their long term financial futures.
Tueart explained: “You are talking to young players and saying, 'look, you and your mates and your family can party for a decade, or you can have a nice life forever'.
“As advisers we will be thinking about the young family and the children that those players don't yet have. We're trying to get them to put things in place that are going to make their lives easier when they do have a family to support. Getting young players to get their heads around that can be challenging.
“A 21-year old player doesn't always return my calls but when that player is 31, they're ringing me every day because they've got two or three children, maybe in private school, their legs are starting to fall off and the contracts aren't as good. They suddenly see that time is looming. And that's when it really matters.”
To hear more about the challenges footballers are currently facing when it comes to their finances and what approach advisers need to take to help them, click the image above.
alina.khan@ft.com
