Welcome to the league: a wealth playbook for newly drafted professional athletes

Being drafted marks the beginning of a life-changing journey. After a handshake with the commissioner comes fame, opportunity and financial complexity. For newly drafted athletes, this moment represents the culmination of years of dedication. But it’s also the beginning of a critical financial game plan that, if executed well, can secure wealth for generations.

The smartest players aren’t just thinking about the next season. They’re thinking decades ahead.

Here is what a recently drafted player should consider from a wealth management standpoint, and why having a seasoned advisor to quarterback your financial team can be beneficial.

1. Understand the financial reality of your earnings

Most rookies are excited—and rightfully so—about their new contracts. A top 10 pick could see guaranteed earnings upwards of $20 million over four years. However, it’s important to understand how quickly that number can shrink without the right strategy.

Between federal and state income taxes, agent fees, union dues and living expenses, a player might see only 40-50% of their gross salary land in their respective accounts. And that’s before considering lifestyle inflation, family obligations and unexpected expenses.

2. Quarterbacking the right team

A common mistake among young athletes is trying to manage everything independently, or leaning too heavily on one wealth advisor for everything. That’s not sustainable. Many successful athletes treat their wealth like a business, with a specialized team around them.

The wealth advisor acts as the quarterback, coordinating between your:

• Sports agent or business manager: Aligning short- and long-term income, endorsement deals and off-court opportunities.
• Attorney: From reviewing contracts to structuring trusts or LLCs, legal counsel is vital.
• CPA or tax strategist: Designing plans to minimize income, estate and gift taxes—often using multi-state planning and advanced deductions.
• Insurance specialist: Evaluating risks and protecting your income, assets and health.