Good thing athletes are so cool and well endowed, otherwise it’s hard to imagine anyone would want to manage money for these guys.
Here’s what money managers say it’s like to work for athlete clients: time-consuming!
Aaron Smith, founder of the $73 million money manager A.W. Smith Financial says that many of the athletes he has for clients will call him late at night just to ask him about taxes, leases, and child support payments.
“I have to re-educate them multiple times on the same issue. It just takes a lot more time,” he told Investment News.
Smith said that while just 20% of his business comes from NFL players, they end up requiring 70% of his time.
Another money manager said the same:
“They think that they are your only client. They call every day,” Tom Vilord, of $45 million Vilord Wealth Advisors.
But of course, they’re paying clients and athletes are so cool that it’s hard not to like them.
“But I like working with them,” says Vilford. “They’re a lot of fun.”
Here’s one reason why they might be so difficult, according to Investment News:
Many NFL players and professional athletes come from middle-class or low-income backgrounds and often have absolutely no experience handling large sums of money.
Alan Holford, an asset agency manager with $250 million Axa Advisors LLC, said that’s the main problem: Most athletes just aren’t financially responsible.
“There’s such a small minority of the athletes who are financially responsible. I have one athlete who is saving every penny he gets. He’s the kind of client I like — but for professional athletes, he’s a rarity.”