Merrill Lynch, College Launch Program For Sports, Entertainment Wealth Advisors

Tom Burroughes

18 May 2021

Merrill Lynch Wealth Management and a US financial training and education group have built a program for advisors focused on sports and entertainment clients. The move is an example of how wealth managers are targeting specialist segments.

The US wealth management house has partnered with the College for Financial Planning®, which is a Kaplan Company. The Sports & Entertainment Accredited Wealth Management AdvisorSM or SE-AWMASM program is a professional designation, the groups said in a statement yesterday.

The financial challenges faced by individuals and families navigating sudden wealth in the sports and entertainment industries are well documented. According to the book F L A G , 80 per cent of NFL players and 60 per cent of NBA players face bankruptcy or serious financial stress within two years of retiring from the league, while MLB players are four times more likely to file for bankruptcy than the national average.

“The distinct financial challenges that sports and entertainment professionals possess over their careers are the very reasons why they need a financial advisor who is qualified to address those challenges,” Dirk Pantone, president of the college, said.

“From a sudden-wealth event to an uneven or multiple income stream to an unknown career span, these professionals have added complexities in their financial lives and goals. We designed the SE-AWMASM program to utilize real-world client situations and case studies to illustrate planning techniques and strategies that are instantly applicable to servicing client needs,” he said.

This news service has also chronicled how sports, media and entertainment clients, often have uneven income streams and short earnings' windows, needing particular guidance on how to manage their money. Royal Bank of Canada, to take just one example, bought California-based City National Bank in 2015, acquiring a large book of entertainment industry clients. In July 2019, Nashville-based Stonebridge Wealth Management and the Association of International Certified Professional Accountants created a program pitched at athletes and entertainers. Another angle is sports as an investment sector. In 2019, California-based Sapphire Ventures, a technology venture capital firm, launched a $115 million platform to back start-ups in the sport, media and entertainment sectors. The platform was called Sapphire Sport.

The SE-AWMASM program will provide participants with the ability to analyze and evaluate numerous wealth planning strategies, including qualitative planning, trusts, investments, retirement benefits, cash flow and tax planning, business and estate planning, and how to customize plans and solutions for each client’s unique circumstances.

The College for Financial Planning®, which was founded in 1972, provides degree, non-degree, and continuing professional education programs. It operates the Certified Financial PlannerTM certification.

On a related level, wealth managers have been active sponsors of sports as a way of building brands - connecting to clients by association to competition, excellence and excitement. For example, iCapital Network, the alternative investments fintech platform, said in April that it was taking its brand around the world’s most famous golf courses by signing up the UK’s Lee Westwood – ranked 20th in the world - as a brand ambassador. Within motor racing, UBS is global sponsor of Formula One.