Professional Athlete Financial Literacy and Management

Presenter

Carter Michael Shepherd

Campus

UMass Amherst

Sponsor

Muzzo Uysal, Department of Hospitality and Tourism Management, UMass Amherst

Schedule

Session 3, 1:30 PM - 2:15 PM [Schedule by Time][Poster Grid for Time/Location]

Location

Poster Board C5, Poster Showcase Room (163), Row 1 (C1-C10) [Poster Location Map]

Abstract

This research explores the financial intricacies of professional athletes, aiming to better understand budgeting decisions, investment patterns, and post-retirement planning. Motivated by the cold reality that, "over 78% of professional athletes within 2 years of retirement experience financial distress or file bankruptcy" (Danowski, 2012), the study addresses the gap between substantial earnings and persistent financial challenges faced by athletes in their post-playing career. 

The primary focus of this research revolves around financial literacy, and its impact on athletes' post-retirement financial standing, while also offering solutions and strategies for effective asset management. Research questions will dive into existing financial practices, the influence that advisors and agents can have, and athletes' perceptions of financial planning. 

The study contributes to athlete financial literacy understanding, benefiting current, past, and aspiring athletes. It also sheds light on the roles of agents, advisors, and financial managers in shaping athletes' financial decisions. Identifying data gaps, the study (at this point in time) will utilize a survey-based methodology to collect primary data from current and former athletes. Variables include educational exposure (independent), financial acumen (dependent), and moderating variables including family background, generational wealth, and career stage. This research seeks to provide sophisticated insights, bridging existing gaps and contributing to a more informed and secure financial future for professional athletes.

Keywords

Sport Management, Financial Literacy, Professional Athletes, Financial Acumen, Post Retirement Planning

Research Area

Finance

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