Sport stars should concentrate on what they do best
Jack Macdonald, Director at RBC Wealth Management, says sport stars are more and more aware of the importance of private wealth management and seek good advice rather than tax avoidance schemes.
Many sport stars have been recently badly advised, especially on taxes. Why do you think that is?
In the past there have been too many occasions when advice given by agents and tax advisers was more driven by incentivising themselves rather than protecting their clients. Tighter regulations and a greater global awareness of this behaviour has meant that the focus is now more and more on good advice and a welcome move away from more aggressive tax planning.
What are the challenges UHNW sportsmen/sportswomen face?
Sportsmen and women’s ultimate focus is on honing their performance, rather than financial issues. This means that, generally speaking, they are often not particularly financially sophisticated, so initially there can be difficulties in understanding some of the theories and terminology. Combining this with the many outside influences like sponsors’ demands, public appearances, and the potential for social media pitfalls and it is clear they need trusted, quality financial advisers so they can feel confident they are in safe hands and concentrate on what they do best.