Professional athletes have traditionally been targeted by fraudsters and a sizeable percentage of them end up as victims of investment fraud or financial scams. The global sports business and professional players’ salaries are increasing in value each year and so do financial fraudsters.
Money Smart Athlete Blog
The aim of the Money Smart Athlete Blog is to provide athletes worldwide with the tools to become money smart and help them make savvy financial decisions. We created this blog to transmit and share the knowledge we have accumulated as financial and business advisors during the past two decades.
To gain professional status and be able to play sports for a living, young athletes and the people who surround them make lots of personal sacrifices for many years. Going professional is every athlete’s dream and it oftentimes comes with fame and money.
Regular followers of the MSA Blog will by now be acquainted with the “Sudden Wealth phenomenon”. At the very visible risk of becoming repetitive: the Sudden Wealth phenomenon relates to individuals who suddenly find themselves making exponentially more money than they previously did.
Happy New Year to all! The past year has been a hell of a year for all of us. The coronavirus pandemic has swept the whole world, sport and athletes included, with a devastating ripple effect. Our wish for this year is to keep safe and healthy, manage to recover from the COVID effects and move on to a growth path again!
During different stages of your sports career, you will have to interact with many professionals who will help you with your athletic, financial and business endeavours. Creating the right team of trustworthy, reputable, and established professionals within any given field is important to your success.
We tend to think of athletes as some of the most privileged people on the planet and although that is true to a certain extent, it only reveals part of the story. When we hear the word athlete immediately to mind come people like Cristiano Ronaldo, Serena Williams and Lebron James, and we usually overlook the fact that athletes of such calibre, prestige, fame and wealth are only the tip of the iceberg.
Professional athletes will enter into different types of contracts within the course of their career and ideally these should be reviewed by a legal advisor prior to their execution. Of course, there are a few key points that athletes should look out for when signing a contract:
The special nature of an athletes’ career, highlights the importance of having solid written contracts for all aspects of their professional life; contracts that almost no athlete can deal with without receiving specialized advice.
Professional athletes moving abroad face a number of challenges as they settle and adjust to new realities. Signing a playing contract in a foreign country comes with a new culture, a different language and the change of a team and colleagues.
A professional athlete’s career is unlike any other profession we know of. Professional athletes, due to the nature of their careers, are exposed to a multitude of risks and have to deal with a number of legal implications pertaining to those risks.
Last June the Intercollegiate Athlete Compensation and Rights Bill was signed into Law in Florida, by the state’s Governor Rick DeSantis. Florida’s move is the latest development of a precedent set by California, but certainly not the last as numerous states have similar bills in the legislative queue. What these laws do is simple: allow college athletes to profit from the use of their name, image, and likeness. Such laws are a direct assault against the so-called NCAA amateurism criterion which prohibits athletes from doing just that.
With five states enacting legislation on the use of name, image and likeness rights (NIL) by NCAA student athletes, it is imperative that student athletes start exploring how they can use this groundbreaking legislation, as best as possible.
The battle over athletes’ rights to profit from the use of their image – The Story, The Events and The Aftermath
College sports have been part of the American reality since the late 19th century when the Yale rowing team competed against the Harvard rowing team to what marked the beginning of an era: the era of college sports. Nearly 170 years have passed since then, but one thing remained the same, college athletes have never been able to use their image rights to benefit monetarily, up until recently.
When in 2015 a handful of football players tried to unionise and were rejected by the National Labour Relations Board, Donald Remy, NCAA’s chief legal officer applauded the decision and argued that: “Student-athletes are not employees, and their participation in college sports is voluntary”.
November 2020 Editorial: The Commercialization of the Student Athlete Image and the NCAA Amateurism Criterion
Since its establishment under President Theodore Roosevelt, the National Collegiate Athletic Association (NCAA) has been the administrative and coordinating body of college sports. Virtually unknown to the rest of the world, the NCAA, its policies and intransigence have been a focal source of controversy regarding the image rights of student athletes in the US largely because the NCAA has been at the epicentre of every reaction against the professionalization of college sports.
The European Union (EU) has for years now been designing and implementing laws and policies that aim to prevent the use of the Union’s financial markets for money laundering, a process through which illegally obtained money are put through various transactions and deals that can eventually make the money appear as they were obtained from legitimate sources.
In a previous piece we pointed out the legacies of infamous drug lords such as Pablo Escobar and the Rodriguez brothers in the world of football. It is not necessary, however, to send our imagination in pursuit of Netflix to the depths of South America in order to examine the relationship between criminals—money launderers to be precise— and the sport industry.
In previous editions of the MSA blog, we have addressed corruption in sports, but this month we have decided to narrow it down to a very specific type that we believe deserves special attention. Corruption comes in different forms and can be found on all levels of the sports world on a local, national, institutional and international level.
Money laundering is a hot topic on the global financial and political agenda right now, and the fight against it has become increasingly important in a world where governments are struggling to keep their fiscal balances in check, and reverse the rising incidence of tax evasion, drug trafficking and consumption, and criminality in general.