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Financial and legal advisors representing professional athletes (pro-athletes) confront the following unique challenges in protecting and building their clients’ wealth:
• Relatively short earnings horizon—The average career spans from 3.5 to 5.6 years, and the prime earnings period from athletics is limited. Additionally, certain pro-athletes may suffer career-ending injuries early in their professional experience.
• Unrestrained spending habits—Generally, pro-athletes’ spending on luxury goods, such as vehicles and residences, especially in the initial period of their careers, may outstrip their earnings.
• Limited financial literacy—Many pro-athletes are recruited from high school or college and aren’t well-versed in investing or b...
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