Money Smart Athlete Blog

5 Risks You May Face as An Athlete

Jul 4, 2018 | Risk Management

Risk is the potential of gaining or losing something of value. It can be defined as the intentional interaction with uncertainty. Similarly, it can be described as the consequence of an action taken despite uncertainty. There are so many risks out there:  the risk of getting sick, the risk of injury, the risk of a car accident, the risk of a house fire, the risk of theft, the risk of losing your job, etc.

Athletes face different types of risks due to the special nature of their circumstances. As a Money Smart Athlete, it is important to identify and manage potential risk as well as identify different types of fraud so that you can take measures to hedge against them.

Knowing your risks as an athlete, will help you protect yourself and your personal finances in a number of ways, whether that means buying different types of insurance to cover basic and sport specific needs, protecting your wealth and your family, or limiting the disastrous financial effects of a divorce.

Let’s see what are these risks that you should be aware of, so that you can protect yourself to the maximum.


Sport injuries in general, are related with high direct and indirect costs for an athlete and can lead to various highly destructive effects. An injury can come from numerous events, such as from an accident during a game, or from a car accident. Additionally, injury due to sickness is a common phenomenon. The effects from such events can be disastrous for your career because they can cause you the temporary or permanent inability to work, which can eventually lead to an early sports career retirement.

Therefore, you need to be covered for personal accident risks, because an injury can be critical to your athletic career and it can be a financially debilitating event.


Athletes, especially the ones competing nationally or internationally, travel quite often and they need to be covered for both any injuries sustained abroad, and for medical expenses incurred while injured out of state or abroad.


The incidence of terrorism and transnational crime has increased dramatically in the last decade, especially for public figures and well known high net worth individuals. A number of professional athletes have built substantial wealth and fame and therefore they are prone to kidnap, ransom or extortion situations. Kidnap and extortion are not just economic crimes. The cost and impact to the athletes and their families can be even more severe.


Being at a young age, most of you are probably single, and don’t even think of marriage yet. We believe that it is important to raise your awareness now. It’s important to realize that setting up a proper financial relationship with your better half will let your future marriage and relationship flourish!

Marriage is considered as one of the most important events in a person’s lifetime. Couples usually spend a lot of time planning every little detail and may even hire a wedding planner to assist them through the whole process. What many couples choose to skip before “tying the knot”, intentionally or not, is setting their common financial future on the right basis. Prenuptial agreements are a necessary legal step, to spell out a couple’s financial relationship before marriage.


It’s not uncommon for professional athletes to purchase cars or even homes for family members or close friends. This generosity is admirable, but it’s important to be clear about the ownership structure. The more assets under the athlete’s name, the higher the liability risk. Plus, if he or she is the owner of the home on paper, but is not the primary resident, there could be insurance implications.

On the other hand, financial activity through an established corporation that belongs to the athlete will reduce the personal liability of the athlete. For example, instead of owning a car under the athlete’s name, own the car under the corporation’s name. This will reduce the overall liability of the athlete.

You should always remember that when it comes to dealing with the inevitable, preventive planning and preventive action are critical. Always make sure that you are well informed about your risks as an athlete before making important insurance decisions. If you need any help in the subject of risk management you can get in touch with us at [email protected].