NFL union aims to keep players' finances from spiraling out of control

Helpline offers information, second opinions, sympathetic ear but not advice.
JUL 09, 2013
The National Football League Players Association has expanded a financial education program that helps its members manage their often-substantial wealth. The union for professional football players recently added a free financial helpline service that players can call for general information, a second opinion on investment strategies recommended by financial advisers, or merely a sympathetic ear in a time of a crisis. The service is not intended to be a source of financial advice, said Dana Hammonds, director of player affairs and development. “The helpline rounds out the services we offer our members, providing them with education, not financial advice,” said Ms. Hammonds. The association also has a voluntary financial adviser registration program that helps players choose an adviser. “This helps members lay out their options to make things clear and help them make educated decisions about financial matters.” The original program was launched in 2009 when the union was worried about players' ability to weather a looming lockout. The association teamed with Financial Finesse, a provider of financial education, coaching and counseling resources for more than 500 corporations, to craft a program for players to get their financial lives in order. “We wanted them to prepare for a possible lockout. If they were hurting, they would have been susceptible to caving in to league demands and we'd lose our negotiating leverage,” Ms. Hammond said. What started as a crisis management strategy evolved into a more comprehensive program for helping players manage their financial lives. As in many professional sports, young athletes who come into large amounts of money with little experience managing it can end up in financial straits after often-short careers. “A number of players have trouble making the transition to a second career, whether that involves financial difficulties or just moving beyond football,” Ms. Hammond said. “In the long run, the lockout was a fire drill for when the paychecks end.” Liz Davidson, chief executive of Financial Finesse, said one challenge was getting players to use the largely online program. “The biggest issue is saving because they're paid weekly over a 17-week period,” she explained. “We didn't want to just have a repetitive message of save, save, save.” Employing webcasts and podcasts — often featuring players to tackle specific financial issues — the program has proven a success, with more than 1,000 players and many players' wives having participated in it between 2009 and 2011. Financial Finesse's helpline is answered by salaried certified financial planners and the program produces educational materials to help players deal with situations such as the crush of demands from family and friends or the offers of predatory lenders. “It's a bit like lottery winners. When your lifestyle changes quickly, it can be hard to resist spending a lot and to deal with the good fortune,” Ms. Davidson said. NFL players were locked out by the league between March and August of 2011, but didn't miss any paychecks from the 2011 season. Nevertheless, the education program has continued to attract participants. “After the lockout was resolved, the program has focused on preparing players for the transition from their playing careers and we've had much more participation than we expected,” Ms. Davidson said. “At a meeting in Hawaii recently, we were competing with the beach and it was standing room only.”

Latest News

Newsom wants nationwide billionaires tax as presidential bid may loom on the horizon
Newsom wants nationwide billionaires tax as presidential bid may loom on the horizon

“It’s time for an economic reset,” wrote the California governor, in a post on X.

Maryland regulators spank fledgling art-focused RIA Masterworks over registration snafus
Maryland regulators spank fledgling art-focused RIA Masterworks over registration snafus

Masterworks was launched in 2017 but its RIA, Masterworks Advisers, is just three years old.

Investors allege Miami operator took over $1.5 million in EB-5 scheme
Investors allege Miami operator took over $1.5 million in EB-5 scheme

One 2017 form, no broker license, and a $42 million gap they say surfaced on a webinar.

Gen X, millennials lag in retirement confidence amid knowledge gap
Gen X, millennials lag in retirement confidence amid knowledge gap

Fewer than half of Americans in their peak earning years feel on track for retirement, while many say limited financial knowledge and access to professional guidance are holding them back.

Advisor moves: Veteran-led UBS team overseeing $460 million migrates to Merrill
Advisor moves: Veteran-led UBS team overseeing $460 million migrates to Merrill

Meanwhile, Wells Fargo hauled advisors overseeing $825 million in the West Coast, while Wedbush has welcomed a seasoned professional from Stifel in California.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.