Gary Charles, the CEO of the nonprofit racial equity organization Advancement of Blacks in Sports, offered an audience of financial advisors some parting advice about working with athlete clients.
“I would say, ‘Get close to the momma,'” said Charles. Drawing laughter that later gave way to applause, he explained how college coaches on the basketball recruiting trail often fail to sign players because they didn’t make friends with the athlete’s mother and the rest of the family. “I have coached over 400 players,” he said. “And I would tell you, 95% of the time, it’s mommas.”
In sessions at last month’s Association of African American Financial Advisors (Quad-A) Vision conference in Atlanta, Charles along with two planners, two former NFL players, a WNBA coach, an actor and a motivational coach – all quoted in the slideshow below — shared tips for advisors on serving athletes, musicians, entertainers and other clients in an often-coveted niche. Panelists explained why it’s essential that advisors seeking to work with that niche understand the challenges of overnight wealth and the pivotal role of families and friends.
Loved ones and social circles affect referrals, legacy planning and, in some cases, whether a prospect even becomes a customer. Charles coached future NBA stars Lamar Odom, Joakim Noah and Lance Stephenson through his youth basketball program and helped connect the late Kobe Bryant with sneaker executive Sonny Vaccaro for the future legend’s first shoe deal in 1996. Charles’ nonprofit, ABIS, is now collaborating with J.P. Morgan Chase, Quad-A and a dozen colleges and universities on a financial coaching class for athletes.
“You don’t know what you don’t know,” Charles said of many young athletes breaking into professional sports. “You’re 21 years old. We have this issue thinking that a 19-year-old or 20-year-old knows exactly what to do with their money. They don’t. So that’s part of the reason why they fall behind. They just don’t know any better.”
Scroll down the slideshow for details on the financial coaching program at Charles’ nonprofit as well as nearly a dozen other tips for advisors about working with clients who are professional athletes, musicians, actors, entertainers or in other creative fields where it’s possible to get instant riches but also lose it all.
Other sessions at the Vision conference in September included discussions of Quad-A’s mission, the racial wealth gap, ESG investing and diversity and inclusion. For a look at additional coverage about advising famous clients on their retirement decisions, click here.
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