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Strategies from a CFP® Pro to Help Athletes Protect & Grow Wealth
- Leyder "Aiden" Murillo, CFP®, AWMA®, SE-AWMA®, MBA
- Apr 2
- 10 min read
Updated: 7 days ago
The Financial Playbook for Athletes
When I started in the financial advisory industry back in 2013, I kept hearing the same heartbreaking story—athletes who had made millions during their careers ending up broke, even homeless. It wasn’t just bad luck; it was a pattern. Some were misled by people they trusted, while others simply didn’t have the right financial guidance. Seeing this happen over and over again made me realize that I wanted to be part of the solution.
That’s why, when I went independent as a financial advisor, I made it my mission to earn the CERTIFIED FINANCIAL PLANNER® certification—not just to set myself apart, but because I knew athletes deserved comprehensive, fiduciary financial advice that prioritized their long-term well-being.
Whether you're an athlete, sports agent, or business manager, you’ve likely witnessed the financial pitfalls that come with short-lived sports careers. Despite earning millions in a short time frame, poor planning, bad investments, and financial mismanagement can lead to devastating losses. As a CERTIFIED FINANCIAL PLANNER® professional and a Sports & Entertainment Accredited Wealth Management Advisor™ professional, I specialize in helping athletes, agents, and business managers safeguard and grow wealth for long-term financial security through advanced tax planning, international tax strategies, business structuring, investment diversification, risk mitigation, and multi-jurisdictional asset protection.
You might also know me as Your Friendly Neighborhood Wealth Management Advisor, a title that reflects my approachable, client-first philosophy. I make financial planning accessible, breaking down complex wealth strategies in a way that resonates with athletes and their personal professional teams, including sports agents, business managers, and financial advisors.
Who I Help
I work with professional athletes, retired athletes, student-athletes, their sports agents, and their business managers to develop long-term financial strategies that protect and grow wealth, ensuring financial stability beyond their playing years. Whether you're navigating endorsement deals, NIL (Name, Image, and Likeness) contracts, contract negotiations, or international tax laws, I help optimize financial structures for maximum efficiency.
Table of Contents
The Unique Financial Challenges Athletes Face
Unlike traditional professionals, athletes earn the majority of their lifetime income within a few short years. For example, NBA star Antoine Walker made over $108 million in his career but declared bankruptcy just two years after retiring due to poor financial decisions and excessive spending. Without a wealth preservation strategy, an athlete’s fortune can quickly disappear.
Key challenges include:
Short Career Spans: Maximizing Earnings in a Limited Time
Athletes have significantly shorter earning windows than traditional professionals. Careers can be cut short due to injuries, contract issues, or market demand shifts. Without strategic financial planning, an athlete’s career can end well before they’ve built sustainable wealth.
NFL: 3.5 years
NBA: 4.8 years
MLB: 5.6 years
Soccer: 8 years
Golf: 20 years
High Spending and Lifestyle Creep: Avoiding Financial Ruin
Athletes often receive lucrative endorsement deals, which can have significant tax implications if not structured properly. Without the right financial guidance, these earnings may be subject to higher tax liabilities or inefficient tax treatment. This can create a false sense of financial security, leading athletes to believe their wealth is more stable than it actually is. These earnings can fluctuate, and without proper financial management, athletes may overspend during peak earning years without planning for future stability. High-profile sponsorships and endorsements are great opportunities, but should be integrated into a long-term financial plan to avoid financial strain post-retirement. Athletes face pressure to maintain luxurious lifestyles, often spending recklessly on cars, homes, and extended family. Stories of extravagant spending are common—many athletes fall into the trap of trying to sustain a multi-million-dollar lifestyle without ensuring longevity in their earnings.
Poor Investment Decisions: The Risks of the Wrong Advice
Many athletes fall victim to bad investments, from fraudulent deals to failing startups. With aggressive investment pitches and high-risk opportunities, athletes are frequently pressured into deals that aren’t aligned with their best financial interests. Without proper due diligence and financial guidance, they can lose millions.
Transitioning from Playing to Retirement: A Financial Shift
One of the most difficult transitions for athletes is moving from high-earning years to retirement, where income is often significantly lower. Many retired athletes explore new careers, broadcasting, coaching, investing in businesses, or even returning to school to build a second professional career. However, without a structured financial plan, many find themselves struggling to maintain financial stability post-retirement.
Tax Mismanagement and International Tax Complexities: Protecting Hard-Earned Money
Athletes face complex state, federal, and international tax obligations, which require careful planning to minimize liabilities and optimize financial efficiency. Strategic tax structuring can significantly reduce burdens, particularly for international athletes and those with endorsement deals. Endorsement deals for athletes, especially those who earn income in multiple countries, require strategic tax planning to minimize liabilities and avoid double taxation. Business structuring, such as forming business structures or varying specialized trusts, can significantly reduce tax burdens, even offshore companies can particularly benefit international athletes who earn income across multiple countries from endorsement deals, sponsorships, and contract signings. Athletes face complex state, federal, and international tax obligations, often unaware of how to structure their finances for efficiency. Business structuring, such as forming LLCs, S-Corps, or offshore companies, can significantly reduce tax burdens, particularly for international athletes who earn income across multiple countries from endorsement deals, sponsorships, and contract signings.
Predatory Financial Influences: Protecting Wealth from Exploitation
Financial fraud and exploitation are rampant in sports. Many athletes fall victim to shady business partners, financial scams, or advisors who do not have their best interests at heart. Without a trusted fiduciary financial planner, athletes may be vulnerable to schemes that deplete their wealth.
How a CFP® and SE-AWMA® Professional Helps Athletes Secure Their Future
Athletes face unique financial challenges that require specialized expertise. A CFP® and SE-AWMA® professional can provide tailored financial solutions that protect and grow an athlete’s wealth throughout their career and beyond. Unlike general financial advisors, a CFP® professional operates as a fiduciary, ensuring that the athlete’s financial interests always come first.
I help my clients build a comprehensive financial game plan that includes everything from investment management, tax efficiency strategies, business structuring, fraud prevention, to retirement and legacy planning. By taking a holistic approach, I ensure that athletes are not just making money—but keeping and growing it for the long term.
Smart Tax Planning for Athletes
Managing taxes is one of the most complex financial challenges athletes face. Without proper planning, a significant portion of an athlete’s income can be lost to taxes, especially given the multi-state and international nature of their earnings. Whether it’s structuring endorsement deals, optimizing residency for tax purposes, or utilizing tax-efficient investments, having a solid tax strategy is critical.
State Tax Residency Planning
Athletes often play in multiple states, each with different tax laws. Establishing residency in a tax-friendly state can help minimize state income tax liabilities, allowing more earnings to be retained.
Deferred Compensation Plans
Structuring payouts over time can help athletes spread their income across lower-tax years, reducing their overall tax burden. This approach can be particularly useful as they transition out of their playing careers.
Utilizing Business Entities
For athletes with endorsement deals, forming business entities can create tax advantages by allowing income to be structured more efficiently. Business retirement structures can also provide additional tax benefits and long-term financial security.
Multi-Jurisdictional Tax Planning
International athletes earning income across multiple countries must navigate different tax regulations. Proper planning can help minimize double taxation and ensure compliance with global tax laws.
Tax-Efficient Investment Strategies
Leveraging Roth IRAs, municipal bonds, and tax-loss harvesting can help athletes retain more of their wealth while staying tax-efficient.
Please consult a tax professional such as a CPA or a financial advisor before conducting any of these strategies. Always reach out to a licensed attorney to structure any business entity.
Protecting Wealth from Fraud and Poor Investments
One of the biggest threats to an athlete’s financial security is fraud and poor investments. Without proper financial oversight, athletes can become easy targets for scams, predatory financial advisors, and high-risk investments that promise unrealistic returns. From Ponzi schemes to unvetted business ventures, many athletes have lost fortunes due to lack of due diligence and trusted financial advisors.
A recent high-profile example of financial mismanagement in sports is the Shohei Ohtani case, highlighting the financial risks athletes face without independent financial oversight. With his trusted translator allegedly misappropriating millions, this situation demonstrates the importance of having a CFP® professional to conduct regular audits, ensure transaction transparency, and implement fraud prevention strategies to protect an athlete’s wealth. His trusted translator, Ippei Mizuhara, allegedly stole millions of dollars from him to cover gambling debts. This situation underscores how even the most successful athletes—Ohtani signed a $700 million contract—can still fall victim to financial fraud when they don’t have independent, fiduciary oversight.
Another infamous case is Tim Duncan, who lost over $20 million due to fraudulent investments made by a trusted financial advisor. Duncan later stated that he wished he had been more involved in his financial affairs and had a dedicated fiduciary professional looking out for his best interests.
How Athletes Can Safeguard Their Wealth
Conduct regular financial audits – Reviewing all transactions with a trusted CFP® professional ensures transparency.
Independent financial oversight – Having a fiduciary financial advisor separate from business managers prevents conflicts of interest.
Diversified investment strategies – Avoiding high-risk, unverified investments protects long-term wealth.
Fraud prevention measures – Monitoring accounts for suspicious activity and unauthorized transactions.
Without independent, fiduciary guidance, athletes can unknowingly put their financial futures at risk. Protecting wealth requires a team of ethical professionals who prioritize the athlete’s financial security.
Building Multiple Income Streams Beyond Sports
Relying solely on a playing contract is not a sustainable financial plan. Many athletes fail to plan for the years after their sports careers end, leaving them financially vulnerable when the paychecks stop. The key to long-term financial stability is building multiple income streams while still active in the game.
How Athletes Can Create Diverse Revenue Streams
Franchise Ownership – Many athletes, including Shaquille O’Neal, have built wealth through restaurant and franchise ownership.
Media & Broadcasting – Retired athletes can leverage their expertise in sports commentary, broadcasting, and media deals.
Entrepreneurship – Investing in startups, real estate, and business ventures allows athletes to grow their wealth beyond their salaries.
Brand Endorsements & Licensing – Utilizing NIL (Name, Image, and Likeness) rights and strategic brand deals can sustain income post-career.
A great example is LeBron James, who has leveraged multiple income streams to ensure long-term financial success. While high-profile athletes like James have the resources and connections to diversify their wealth, many athletes need a structured approach to financial planning to achieve similar stability. By working with a CFP® and SE-AWMA® professional, athletes at all levels can create sustainable income beyond their playing careers. Diversifying wealth into media companies, business ventures, and real estate investments can provide financial security well after retirement, ensuring long-term stability. Similarly, Magic Johnson turned his NBA earnings into a billion-dollar empire through smart business ownership.
By planning ahead, athletes can build financial independence beyond their playing years and avoid the pitfalls of financial instability.
Planning for Life After Athletics
The transition from an active sports career to retirement can be one of the most challenging phases for an athlete, both financially and mentally. Without a solid financial game plan, many former athletes struggle to maintain their lifestyles, leading to financial distress and post-retirement uncertainty.
Athletes should start planning early for life after sports, whether they pursue coaching, broadcasting, business ownership, or a completely different career. Having a structured financial plan ensures that they can sustain their wealth, manage investments, and adjust their lifestyle accordingly.
Steps to Financially Prepare for Post-Career Life
Create a Post-Career Financial Plan – Structuring investment portfolios and passive income streams.
Maximize Retirement Contributions – Utilizing business retirement structures, deferred compensation, and tax-advantaged accounts.
Develop a Second Career Path – Exploring business ventures, education opportunities, or advisory roles in sports.
Maintain a Long-Term Budget – Adjusting spending habits to align with a reduced income flow after retirement.
Athletes who take proactive steps toward planning their financial futures can successfully transition into post-career life without financial stress. A great example is Michael Strahan, who smoothly shifted from an NFL career into media and business, leveraging his financial planning to secure a prosperous post-athletic life. Working with a CFP® and SE-AWMA® professional ensures they have a strategic game plan for a stable and prosperous future.
Final Thoughts: Why Athletes Need a Financial Game Plan
Athletes spend years perfecting their sport, but financial success requires just as much strategy. With a CFP® and SE-AWMA® professional on their team, they can ensure their wealth is protected, grown, and managed responsibly through advanced tax strategies, business structuring, and long-term financial planning.
Ready to Take Control of Your Wealth?
Don’t wait until it's too late—start protecting your wealth now. Schedule a complimentary financial assessment today and get a custom financial game plan.
Frequently Asked Questions (FAQ)
Navigating the financial world as an athlete comes with many unique challenges, from managing short career earnings to mitigating taxes and fraud risks. Below are answers to some of the most common financial questions athletes, agents, and business managers have when it comes to securing long-term financial stability.
Why do professional athletes need a financial advisor?
Professional athletes have short career spans and high earnings. A CFP® professional helps with tax strategies, investment planning, and long-term wealth protection to ensure financial stability post-career.
What is the best way for athletes to reduce taxes?
Using business structures, deferred compensation, and tax-loss harvesting can significantly reduce taxes for athletes earning multi-million-dollar contracts. Before conducting any of these strategies, please consult a tax professional, such as a CPA or a financial advisor. Always reach out to a licensed attorney to structure those businesses.
How can athletes protect themselves from financial fraud?
Athletes should work with a fiduciary financial planner who conducts regular audits, monitors transactions, and provides independent financial oversight to prevent fraud.
How do business structures help athletes manage taxes?
By leveraging LLCs, S-Corps, varying accounts, and business retirement structures, athletes can legally reduce taxable income, defer taxes, and create more efficient financial structures. International athletes, in particular, can benefit from tax-efficient strategies tailored to their residency status and multi-country income streams. Please consult a tax professional, such as a CPA or a financial advisor, before conducting any of these strategies. Always reach out to a licensed attorney to structure those businesses.
When should an athlete start financial planning?
Immediately upon signing a professional contract or securing an NIL deal—early financial planning ensures smart tax strategies, sustainable wealth management, and career-long financial security. For student-athletes earning NIL income, starting financial planning early provides peace of mind, whether they make it to the professional level or transition into a different career path.