Safeguarding your financial future - Footballers' Private Office - Smith & Williamson
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Safeguarding your financial future Footballers’ Private Office
Your world is our world At Smith & Williamson, we’ve been looking after the financial affairs of private individuals and their families for over a century. We provide an unusually broad perspective to wealth management, bringing together three core sets of skills — those of the financial planner, the investment manager and the tax expert. Many of our clients are current or former professional sportspeople, from Premier League and Championship footballers to cricket, rugby, tennis, Formula 1 and medal winning Olympic athletes. Our experience in this area means we understand the world you live in, the demands placed on you, and how easily the day-to-day management of your financial affairs can become a secondary concern to excelling in your career. By working with you and your team we can help manage and protect your wealth, with the goal of providing you with a more secure financial future after your playing career is over. I have no hesitation in referring my clients to Smith & Williamson — their advice is always reliable, considered and they demonstrate time and again that they fully understand a professional footballer’s evolving needs. I am yet to find a firm that can offer the breadth of specialised services that Smith & Williamson can provide. While most firms recognise that players need clear and joined up advice on their personal and business affairs, it’s refreshing to find one that’s prepared to invest time and effort to develop a very specific response. Leon Anderson, FA registered intermediary 2
Achieving your goals
It is well known that the playing career of a professional footballer is very short, with
retirement for many starting in their mid-30s. The press regularly print stories of high-
profile players who have fallen on hard times and been declared bankrupt.
Unfortunately, many young players are not provided with sufficient financial education
about how to manage their wealth and, in some cases, are given poor advice by people
not acting in their best interests. Without careful planning it’s easy for players to reach
retirement without sufficient funds.
Working closely with you, your family, your agent and other professional advisers, we
tailor our advice to reflect your objectives and needs. We can act as both your financial
planner and trusted adviser to help you get into good habits early in your career.
In effect, we can act as your ‘personal finance director’ by coordinating all of your
financial affairs so you can retire from football with a financial plan in place.
According to XPRO, two in five former
footballers experience financial difficulty
or bankruptcy within five years of retiring*.
Our Private Office was set up to help
players prepare for life after football.
*According to XPRO statistics as at September 2017
3Understanding your needs
To give you our best advice, our multilingual team goes out of its way to get to know you
and your family, understand your financial objectives and work with you to develop an
overarching financial strategy.
With financial planners, tax advisers and investment managers all under one roof,
you benefit from having three sets of eyes looking at your wealth. You’ll get informed
advice on a range of services including:
• savings in ISAs, pensions and other investments
• image rights and transfer fee tax planning
• monthly budgeting — so you know how much you can spend
• personal and corporate tax
• preparing for injury or illness
• retirement income forecasting — so you’ll know how much you need to save to
retire comfortably (see figure 1)
• tax-efficient sponsorship deals
• commercial disputes
• fraud and financial crime
• matrimonial valuations.
Working with wealthy individuals for over 130 years means we have built an extensive
network of specialists who, if required, can share their knowledge about:
• cars (purchase/hire) • personal security
• children’s education • philanthropy and charitable giving
• concierge services • property (mortgages, buy-to-let,
• fine wine purchasing and selling)
• holidays • public relations
• horses • recruitment of staff
• image rights • watches and jewellery
• insurance (cars, injury and property) • works of art.
• legal advice
4Figure 1 is an example cash flow projection for a professional footballer. The height of
each bar indicates their expenditure (how much they have spent in that year), and the
label indicates the source of income (where that money has come from).
Despite having a successful career and saving for the future there is still a large shortfall
in later years, where the money has run out.
Our team can help you to plan for the future, and estimate the optimum amount you
need to save for your retirement.
Figure 1
2
£600,000
Source: Smith & Williamson 2017
£500,000 The graph is not based on actual data and uses a
number of assumptions.
1
This projection is for illustration purposes only and
£400,000
Yearly outgoings
is not indicative of any future cash flow.
3
The information is not intended to serve as
financial, investment or any other type of advice.
£300,000
£200,000 5
4
£100,000
WAGES SAVINGS & INVESTMENTS PENSION SHORTFALL
£0
20 25 30 35 40 45 50 55 60 65 70 75 80 85 90
Age
1 Annual spending increases in line with rising wages.
2 Retirement from football career.
3 Dramatic decrease in spending when wages stop coming in.
4 Living financed by savings and investments.
5 This player has not saved enough for later life. In order to fund their lifestyle,
they may have to downsize their property or get a job.
“A professional player may have an effective working life of just 15 years.
This equates to only 180 pay packets before retirement, so tax, investment
and general financial management is absolutely vital.”
Simon Bayliff, Areté Sports Agency
5Implementing your strategy
We will monitor the performance of your investments and make
recommendations to ensure they are helping you meet your financial
goals. You will have 24/7 access to your online portfolio, so you can keep
track of your investments. We aim to meet with you on a regular basis to
review your overall wealth management strategy.
We understand you and your family may have other trusted advisers. Our
flexible approach means you can choose which of our services that you
need and we’ll work closely with the rest of your team to ensure we’re
fully joined-up.
“Speaking from my personal experience of working with a trusted adviser
like Smith & Williamson, I can honestly say the service has always been very
professional and always in my best interests.”
Joleon Lescott has been capped more than 25 times for England with spells at Aston
Villa, West Bromwich Albion and Everton. It was at Manchester City, where he had
most success winning the FA Cup, League Cup and two Premier League titles.
6“The experts I chose early in my career have left me with a solid
financial base from which I can make my own choices. You need to
concentrate solely on your game and have a team of people around
you who can take care of the other issues in your life.”
David Platt played for Arsenal, Aston Villa and Juventus; he was capped 62
times for England and as a youngster played for Manchester United.
Expect the unexpected
Circumstances and families change; our role involves anticipating issues
on the horizon, reducing the impact on your family and taking advantage
of new opportunities, where possible.
Your financial strategy needs to be flexible enough to accommodate
changing situations without jeopardising the overall objectives, and
robust enough to ensure that any new decisions made are in the interests
of your family as a whole.
In the event of change, we will guide you on the decisions that need to
be taken. Once we’ve refined your strategy, we’ll work closely with your
other advisers, keeping you and your family informed of the implications.
7Start as you mean to go on
To help young players develop good habits and get on the right financial track
early on in their career, we have developed a programme of educational and life
skills presentations.
These include ‘Saving for life after football’ and ‘Protecting your future’ and have been
delivered to over 20 Premier League, Championship and Scottish Premier League academies.
Football clubs we have worked with:
1 Arsenal 12 Liverpool
2 Aston Villa 13 Middlesbrough
3 Burnley 14 Norwich City
4 Celtic 15 Queens Park Rangers
5 Chelsea 16 Rangers
6 Crystal Palace 17 Reading
7 Everton 18 Southampton
8 Fulham 19 Tottenham Hotspur
9 Hull City 20 West Ham United
10 Ipswich Town 21 Wolverhampton Wanderers
11 Leicester City
“Our players not only found the presentation from Smith & Williamson useful, but
the real-life examples generated serious discussions, which continued far past the
lecture theatre. I think the training is a must for any young sportsman or woman
who needs to think seriously about their finances in the not too distant future.”
Phil Roscoe, Assistant Academy Manager/Head of Education & Welfare, Liverpool FC
816 4
13
3 9
12 7
11 14
21
2
10
19
17 1
15 20
8 5
6
18
9Contact us
Peter Fairchild Nick Richards
Private Client Tax Services, Partner, Smith & Williamson
Smith & Williamson LLP Investment Management LLP
t: +44 (0)20 7131 4207 t: +44 (0)20 7131 4095
m: +44 (0)7908 411 866 m: +44 (0)7795 505 758
e: peter.fairchild@smithandwilliamson.com e: nick.richards@smithandwilliamson.com
@SmithWilliamson Smith & Williamson
10Important information
This document contains information believed to be reliable but no guarantee, warranty
or representation, express or implied, is given as to their accuracy or completeness.
This is neither an offer nor a solicitation to buy or sell any investment referred to in
this document. This document may contain future statements which are based on our
current opinions, expectations and projections. Smith & Williamson does not undertake
any obligation to update or revise any future statements. Actual results could differ
materially from those anticipated. Appropriate advice should be taken before entering
into transactions. No responsibility can be accepted for any loss arising from action
taken or refrained from based on this publication. All quotes are from 2016-17.
Risk warning
• Investment does involve risk. The value of investments can go down as well as
up. The investor may not receive back in total the original amount invested.
• Past performance is not a guide to future performance.
• When investments are made in overseas securities, movements in exchange
rates may have an effect on the value of that investment. The effect may be
favourable or unfavourable.
• Investing in alternative assets involves higher risks than traditional investments
and may also be highly leveraged and engage in speculative investment
techniques, which can magnify the potential for investment loss or gain.
• Investments in emerging markets may involve a higher element of risk due to
political and economic instability and underdeveloped markets and systems.
• Please note that bond funds may not behave like direct investments in the
underlying bonds themselves. By investing in bond funds the certainty of a fixed
income for a fixed period with a fixed return of capital are lost.smithandwilliamson.com
Smith & Williamson LLP Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities.
A member of Nexia International. Smith & Williamson Financial Services Limited Authorised and regulated by the Financial Conduct Authority.
Smith & Williamson Investment Management LLP Authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority
does not regulate all of the products and services referred to here. © Smith & Williamson Holdings Limited 2019. 190919lw Exp: 31/12/2020.
Smith & Williamson is a member of Nexia International, a worldwide
network of independent accounting and consulting firms.
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