Professional athletes are often seen as operating in a world far removed from everyday life, where their day to day is high earnings, global fame and elite performance. But when it comes to planning for the future, the reality is much closer to home: sportspeople, like everyone else, need to ensure their affairs are in order.
In fact, the case for careful succession planning and asset protection is arguably even stronger for those in sport.
A unique financial profile
Unlike most individuals, professional athletes tend to accumulate significant wealth over a short period, often early in life.
This creates a distinctive financial challenge: a compressed earning window followed by a much longer period where that wealth must last. Add to this the risk of career-ending injury, fluctuating income streams and complex endorsement arrangements, and a more strategic approach is clearly required.
Succession planning is not simply about what happens on death, it is about ensuring that wealth is protected, structured and capable of supporting over the long term.
Planning for the unknown
We do not have a crystal ball. Even where there are no children or dependants currently in the picture, that does not mean a Will should be delayed.
Preparing a Will is not an exercise that should need to be repeated regularly, but it should be done properly from the outset, in a way that anticipates future life events as far as possible. A well-structured Will can provide flexibility as circumstances evolve.
The risks of “DIY” or inadequate planning
It can be tempting to assume that creating a simple Will or informal arrangement is sufficient. However, as highlighted in Clarke Willmott’s “Good Will” campaign, poorly drafted or DIY Wills can result in serious consequences.
Homemade Wills frequently lead to ambiguity, disputes between family members, and even challenges to validity, potentially reducing the value of the estate ultimately received.
For high-net-worth individuals, these risks are magnified. Complex asset structures, international holdings and business interests mean that a “one-size-fits-all” approach rarely works. Without specialist advice, poor structuring can also lead to unnecessary tax exposure or delays in administering the estate.
In many cases, the cost of rectifying these issues far outweighs the cost of getting it right in the first place.
Protecting more than just wealth
For sports professionals, succession planning goes beyond dividing assets. It is about protecting what has been built. This includes:
- Ensuring those important to you are provided for
- Safeguarding the value of a career, including image rights and business ventures
- Structuring wealth in a way that preserves it, rather than exposure to risk
Tools such as trusts can play a key role, allowing assets to be managed and distributed in a controlled way, while also offering privacy and protection.
Navigating complexity and international considerations
Modern sports careers are rarely confined to one jurisdiction. Players may sign contracts overseas, hold assets in multiple countries, and establish global commercial interests.
Different legal systems, tax regimes, and succession laws can all impact how assets are dealt with, particularly in the absence of a properly coordinated estate plan.
Without careful planning, assets can become tied up in lengthy probate processes or subject to conflicting laws, undermining the individual’s intentions.
Planning early, not later
Delaying succession planning until later life is a common pitfall and for sports professionals, this approach can be risky.
Given the unpredictable nature of a sporting career, planning should start early. Injury, changes in form or unforeseen life events can quickly alter circumstances. Early planning allows for greater flexibility as matters evolve.
A tailored, professional approach
Succession planning is not a tick-box exercise. It requires a coordinated strategy involving legal, tax and financial expertise.
A properly drafted Will remains the cornerstone, but it should sit alongside a broader framework that may include:
- Trusts for asset protection and controlled distribution
- Tax planning to mitigate inheritance tax exposure
- Business succession arrangements
- Cross-border planning for international assets
Taking professional advice helps ensure these elements work together effectively.
Speak to an expert
While the lifestyles of sports professionals may differ, the underlying principle remains the same: failing to plan can have lasting consequences. For those with significant wealth and complex arrangements, succession planning and asset protection are essential to safeguarding the future.
If you would like to get in touch to see how we might be able to support you with anything discussed above, please contact Georgia Collier by submitting an online form or by calling 0345 209 1000.
Don’t overlook family law considerations
While succession planning and asset protection are critical, it forms part of a wider picture for sports professionals. Relationship changes can also affect wealth, particularly where substantial assets and future earnings are involved.
Family law issues are increasingly relevant in the world of sport, where careers are high‑profile, international and financially complex. Taking a proactive, joined-up approach alongside your succession plans can help safeguard assets and provide greater certainty for the future.
Our specialist team regularly advises sports professionals and high-net-worth individuals on these matters. You can read more about how these issues play out in practice in our insight piece here.
