JPMorgan Chase announced Wednesday it’s launching specialized financial advisory services designed to help athletes at every career stage manage their earnings more effectively over the long term.
The program targets a broad spectrum of athletes rather than focusing solely on superstar performers. It encompasses everyone from college players receiving their first payments through name, image and likeness agreements to veteran professionals facing retirement in their thirties who need their earnings to support them for decades ahead.
The bank plans to connect with these athletes early in their careers, potentially reaching high school students but definitely establishing relationships on college campuses to instill sound financial practices from the beginning.
“They are coming into a lot of money, and they don’t know what to do with it,” said Megan Rapinoe, the professional soccer player and Olympic gold medalist.
This initiative serves JPMorgan’s business interests as well. Athletes who reach professional status often accumulate millions, with top performers potentially reaching billionaire status. Handling these assets through JPMorgan’s wealth management division could generate substantial fee income, while celebrity athletes may attract additional clients to the bank.
Financial troubles among wealthy athletes have become well-documented. Research indicates that approximately one-sixth of NFL players face bankruptcy within twelve years after leaving the sport. Boxing champion Mike Tyson, despite reportedly earning $500 million throughout his career, eventually declared bankruptcy, joining other sports legends like Evander Holyfield and Antoine Walker who experienced similar financial collapses.
These situations typically follow a common pattern: athletes accumulate significant wealth but lack the financial education necessary to preserve it throughout their lifetimes.
Peloton instructor Ally Love described feeling intimidated and embarrassed when seeking financial guidance, even after achieving success with the fitness company. She recalled an early banking meeting where advisors left her more confused than informed.
“I was like, ‘Who’s Roy?’ I thought Roy was spelled with a Y,” Love told The Associated Press. She later discovered that “Roy” referred to return on investment, or ROI.
Love joins eight other athletes on JPMorgan’s newly formed Athlete Council. The group includes NBA Hall of Famer Dwyane Wade from the Miami Heat, WNBA champion Sue Bird, and legendary NFL quarterback Tom Brady. Additional members are New York Knicks player Jalen Brunson, World Cup winner Alex Morgan, New York Giants’ Kayvon Thibodeaux, and four-time WNBA MVP A’ja Wilson.
Love explained how banking professionals often spoke condescendingly to her, creating feelings of intimidation.
“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.”
J.P. Morgan Wealth Management CEO Kristin Lemkau conceived the athlete financial wellness program. Lemkau approached Love about participating after meeting at a U.S. Open tennis tournament, discussing how financial institutions typically pursue only the biggest names while overlooking those who most need assistance.
“There is an underserved segment of athletes, whether they are young and in college, professionals, or retired,” Lemkau explained. “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 acknowledged that athletes, like others who experience sudden wealth, will naturally want to purchase luxury items. However, they emphasized that after buying expensive accessories, jewelry and vehicles, these individuals must ensure their remaining assets can support them for many years.
“Enjoy the fruits, but also let the fruit last,” Love said.
