In recent weeks it has emerged that both Craig Bellamy and Wes Brown have been declared bankrupt, due in large part to falling victim to unregulated financial advice. The news is sad; to outsiders seemingly unfathomable, but to those in the industry, unsurprising.
From a young age, players live and breathe football. The financial incentives are largely incidental, but their high earning potential necessitates entrusting others with their – and their families’ – financial futures. Buoyed by locker room recommendations, rather than demonstration of any real value, there have been those who have taken advantage of these circumstances, offering enticing opportunities that turn into failed investments. As
Danny Murphy recently commented, financial impropriety within football is an underreported scandal – and Bellamy and Brown will likely not be the last to suffer.
Steps in the right direction
Things are changing. It was encouraging, in a recent meeting with Omar Beckles, Chair of the PFA, to hear about the efforts being made to protect players’ wellbeing – across many aspects of their lives. This level of safeguarding should help protect more players from the pitfalls felt by those before them, and steer them in the direction of regulated financial services.
But regulation is the minimum requirement for protecting these players’ interests. In his recent and well-researched piece, Daniel Gallan noted a greater propensity for
risk-taking among professional athletes compared to the general population. Amid career uncertainty and a lack of investment expertise, it is surely the place of financial planners to mitigate such risks by practising professional caution.
One area particularly poignant, and often overlooked, is the need for security beyond players’ time on the pitch. Craig Bellamy has spoken of the strange relief he felt regarding bankruptcy, his thankfulness of his current position – but also his
fears for his financial future.
Early preparation is key, particularly through the use of forecasting tools that account for a myriad of possibilities: enhanced performance fees; contract renewals; and promotion or demotion. Once analysed, this information can help build personalised frameworks that assist athletes in achieving familial priorities and managing their finances in a way that establishes stability in the longer term.
The greatest standard of financial services, then, includes a comprehensive plan for the time ahead. It embraces the lack of consistency of earnings and lifestyle throughout an athlete’s career and offsets these risks through prudent advice and skillful investment strategies.
That way, wealth is properly managed, and serves footballers’ interests throughout their playing career and into the next phase of their working lives. There is a long way to go, but as with all aspects of personal well-being, the conversation being made public is a huge step in right direction.