JPMorgan Chase said it will start building wealth advising services for athletes who come into money as a result of their talents, with the bank positioning the effort as long-term planning rather than short-term management. In a statement Wednesday, the company said the services are meant for athletes across sports, ages and income levels, from college athletes earning name, image and likeness royalties for the first time to established athletes earning substantial sums who are now thinking about retirement in their mid-30s.
JPMorgan said it hopes to reach athletes early, including as early as high school but “certainly on college campuses,” with the goal of teaching financial habits from the start. The bank said it is not limiting the initiative to ultrawealthy stars of legend, arguing that athletes with major earning power still need help making their funds last for decades.
Megan Rapinoe, a professional soccer player and Olympic gold medalist, said in a quote provided with the announcement that the difficulty is that new wealth often arrives without guidance. “They are coming into a lot of money, and they don’t know what to do with it,” Rapinoe said.
JPMorgan said it is also drawing attention to patterns where athletes run into financial difficulties despite large earnings during their careers. The bank pointed to academic research showing that one in six NFL players will file for bankruptcy within 12 years of retirement, and it also cited examples including Mike Tyson, Evander Holyfield and Antoine Walker.
Peloton instructor Ally Love described her own experience as an example of why the bank said it wants to engage athletes earlier and more directly. Love said she felt embarrassed or scared to ask for financial advice, and she recalled a first encounter with advisers at a bank that left her with more questions than answers. In that account, Love said, “I was like, ‘Who’s Roy?’ I thought Roy was spelled with a Y,” adding later that she learned “Roy” was not a person but an abbreviation for return on investment, or ROI.
Love also said she felt intimidated during meetings and did not feel educated enough to ask follow-up questions. “I just sat there for many years and I said ‘okay’ and ‘sure’, and did a lot of head nodding, but I wasn’t really being informed, wasn’t really being educated and I was too nervous and too scared to ask for help,” Love said.
As part of the initiative, JPMorgan said Love will join a new Athlete Council that includes nine athletes and other public figures. The council, the bank said, also includes Dwayne Wade, Sue Bird, Tom Brady, Jalen Brunson, Alex Morgan, Kayvon Thibodeaux and A’ja Wilson.
JPMorgan said the financial health initiative was spearheaded by Kristin Lemkau, CEO of J.P. Morgan Wealth Management, who invited Love to participate after meeting her at a U.S. Open tennis match. Lemkau said that while banks often pursue the biggest names, athletes who need help are frequently overlooked, and she described an “underserved segment” spanning young athletes, professionals and retirees.
“There is an underserved segment of athletes, whether they are young and in college, professionals, or retired,” Lemkau said. “They’re all different. And most financial services companies are going after the Ally Loves, the Tom Bradys and the Dwyane Wades, and 99.99% of athletes don’t fit into that space.”
Lemkau and Love also discussed what sudden wealth can prompt in spending habits, but they tied that to the importance of long-range planning. Love said, “Enjoy the fruits, but also let the fruit last,” describing what she said athletes need after the initial purchases.