LOS ANGELES, CA – FEBRUARY 20: Regina King (L) and Sandra Richards arrive for Morgan Stanley … [+] presents Alfre Woodard’s 10th Annual Sistahs’ Soiree on February 20, 2019 in Los Angeles, California. (Photo by Gabriel Olsen/Getty Images)
Professional athletes are among the highest earners in the world, with most of their income coming from endorsements and other endeavors. The 2022 50 Highest-Paid Athletes list said, “The world’s 50 highest-paid athletes collected an astounding $2.97 billion before taxes and agent fees over the past 12 months”. These numbers are only the tip of the iceberg as the professional and financial landscape continues to expand, with the NCAA ruling allowing athletes to earn money and benefit from their name, likeness, and likeness (NIL).
Although being a professional athlete can lead to a profitable career, we have to face the uncomfortable truth that 78% of athletes will be bankrupt within three years of retirement. Female athletes face additional challenges. One is the huge pay gap compared to their male counterparts. For example, the average NBA player earns $5.3 million a year while the average WNBA player earns an average of $130,000 a year. The significant salary gap leads many WNBA players to take their careers to international teams during the off-season. One of those players is Brittany Griner, who is currently in prison in Russia. Brittany has played for UMC Ekaterinburg since 2014 during the WNBA
To unpack and discuss solutions to these ongoing issues, For(bes) Culture sat down with Morgan Stanley’s head of global entertainment and sports Sandra L. Richards. This interview is structured to be clear and concise.
The Business Of Sports
Morgan Stanley GSE and Columbia Business School have partnered on an online course, Business Of Sports. The course brings together leaders from the fields of sports, marketing, finance, media, and management, to give participants an insider’s view of the Global Sports and Entertainment industry. Guest instructors will include Salvatore Galatioto–President, Galatioto Sports Partners, and others.
For(bes) Practice: Does access to financial education positively affect an athlete’s chances of maintaining financial success during and after their career? On the same subject : Sports betting in Texas: when it will be legalized, how to bet online, where to find picks, top promos.
Sandra L. Richards: Yes! It has a big impact. We want to ensure that the players we meet through Morgan Stanley GSE have access to our financial education program. That program and partnership with our financial advisors will help them better manage their finances and learn how to protect their wealth for the long term.
For (bes) Culture: How does Morgan Stanley want the Sports School partnership to impact the industry? Will it help the development of financial statements related to players?
Sandra L. Richards: The impact for us would be more accessible financial literacy. The global gaming industry is estimated to generate more than $600 billion in the next few years. We want to help people, players, managers, etc. to enter $600 billion by providing in-depth information about the sports industry that is usually not discussed outside of certain circles.
For (bes) Culture: Is it possible for an athlete or entertainer to come back from bankruptcy or “lost it all?”
Sandra L. Richards: It’s hard, but I’ve seen it happen. With the right financial advice, players have the ability and opportunities to recover!
The Up And Coming
On June 30, 2021, the Division 1 Board of Directors approved the name, appearance, and likeness (NIL) policy and in July the policy was enacted following a high court decision against the NCAA. Read also : Video games don’t need achievements. This system allows all NCAA D1, D2 and D3 student-athletes to be compensated for their NIL regardless of whether their state has a NIL law or not.
This ruling has changed the financial structure of many student athletes. The NIL policy allows these players to explore new avenues to create generational wealth for themselves and their families.
Practice: What can newly drafted athletes and professionals do to manage and protect their assets early?
Sandra L. Richards: When you think of the team that supports young athletes, it’s managers, agents, and family. It is important to remember the financial advisors who handle the players’ assets. Not waiting to seek financial guidance is the best thing these players can do. They become millionaires almost overnight. Managing that is a huge responsibility. It is important that players see the big picture, invest in assets, and have the financial knowledge to make powerful business decisions.
Practice: With the NIL ruling coming a year from implementation, how is Morgan Stanley dealing with this new position?
Sandra L. Richards: We’ve always thought about this before. The NIL ruling has paved the way for us to help these student-athletes build wealth. We take that responsibility very seriously. College athletes are on social media with hundreds of thousands to millions of followers, these students are the next generation of influencers, and their success is our success.
For (bes) Culture: What resources does Morgan Stanley GSE offer its student-athletes?
Sandra L. Richards: We offer financial literacy tools such as marketing, budgeting, and stock market education, along with attorneys and public relations professionals. These are tools and resources that are not thought of when they first enter their college career. Those things alone can make a big difference in their future professional success.
Title IX
Title IX, the law that mandates that girls and women have equal access to federally funded school activities, celebrated its 50th anniversary on June 23. Morgan Stanley’s Global Sports and Entertainment division has supported gender equality efforts in sports in countless ways. Read also : New Study Suggests Sexual Video Games Have No Effect To Players. Most of all Sandra participated in a panel discussion on the 50th Anniversary of Title IX – The State of Women’s Sports at this year’s Sports PR Conference.
For (bes) Culture: How was the participation of the committee in the PR meeting?
Sandra L. Richards: It was amazing, I was joined by amazing women like Hilary Knight OLY, Team USA Hockey, Gold Medalist, World Champion, and ESPN NHL Analyst; Haley Rosen, Founder/Chairman of Women’s Sports, and Erin Kane, Women’s Sports Vice President of Senior Sports Management. Title IX is an influential law that protects women’s rights to participate in sports.
For (bes) Culture: When we talk about inequality in sports the first topic is the pay gap. What is Morgan Stanley doing now to help promote financial equality for female athletes?
Sandra L. Richards: We’re doing what we do best, working with female athletes on financial literacy and education. There is an issue that needs to be addressed about the lack of salary, our job is to maximize the financial resources and assets that these players have now so that they can continue to have financial success in the long term.
