AWM logo
AWM logo
AWM logo
Family OfficeOur TeamWealth PhilosophyInvestment PhilosophyResourcesPodcasts
Get in touch
AWM Wealth Portal
Wealth management system
Schwab Login
Access your investment portfolio
323-940-1339info@awmcap.com
Phoenix, AZ
League
NFL
MLB
PGA
Elite Family
Career Stage
NIL
Draft
Debut
Rookie Contract
Arbitration
Free Agency
Retirement
Family Office Services
View all
Investing
Tax
Philanthropy
Privacy and protection
Risk management
Family coaching
Life Events
View all
Starting your career
Getting married
Having children
Buying real estate
Retirement
No results found.
More results
Client login
AWM Wealth Portal
Wealth management system
Schwab Login
Access your investment portfolio
Get in touch
A quick note about Schwab
IMPORTANT NOTICE (Required Click-Through Disclosure)
You are now leaving the “AWM Capital” Website and will be entering the Charles Schwab & Co., Inc. (“Schwab”) Website. Schwab is a registered broker-dealer, and is not affiliated with “AWM Capital” or any advisor(s) whose name(s) appears on this Website. “AWM Capital” is independently owned and operated. Regardless of any referral or recommendation, Schwab does not endorse or recommend the investment strategy of any advisor. Schwab has agreements with “AWM Capital” under which Schwab provides “AWM Capital” with services related to your account. Schwab does not review the “AWM Capital” Website, and makes no representation regarding the content of the Website. The information contained in the “AWM Capital” Website should not be considered to be either a recommendation by Schwab or a solicitation of any offer to purchase or sell any securities.
Continue to Schwab
Family OfficeOur TeamWealth PhilosophyInvestment PhilosophyResourcesPodcasts
Get in touch
AWM Wealth Portal
Wealth management system
Schwab Login
Access your investment portfolio
323-940-1339info@awmcap.com
Phoenix, AZ
League
NFL
MLB
PGA
Elite Family
Career Stage
NIL
Draft
Debut
Rookie Contract
Arbitration
Free Agency
Retirement
Family Office Services
View all
Investing
Tax
Philanthropy
Privacy and protection
Risk management
Family coaching
Life Events
View all
Starting your career
Getting married
Having children
Buying real estate
Retirement
Get in touch
A quick note about Schwab
IMPORTANT NOTICE (Required Click-Through Disclosure)
You are now leaving the “AWM Capital” Website and will be entering the Charles Schwab & Co., Inc. (“Schwab”) Website. Schwab is a registered broker-dealer, and is not affiliated with “AWM Capital” or any advisor(s) whose name(s) appears on this Website. “AWM Capital” is independently owned and operated. Regardless of any referral or recommendation, Schwab does not endorse or recommend the investment strategy of any advisor. Schwab has agreements with “AWM Capital” under which Schwab provides “AWM Capital” with services related to your account. Schwab does not review the “AWM Capital” Website, and makes no representation regarding the content of the Website. The information contained in the “AWM Capital” Website should not be considered to be either a recommendation by Schwab or a solicitation of any offer to purchase or sell any securities.
Continue to Schwab
All resources
Article
Article
Article
February 27, 2025

5 Keys to Financial Success

5 Keys to Financial Success
YouTube
YouTube
Apple Podcasts
Spotify
Becoming a professional athlete requires immediate financial planning to manage signing bonuses, control spending, prepare for a short career, plan for long-term retirement, handle financial requests, and protect assets from lawsuits.
Erik Averill
Erik Averill
CFP®, CPWA®
Get in touch

Being drafted and becoming a professional player is an exciting yet dramatic change for every athlete. You are suddenly dealing with significantly more money along with much higher expectations for spending.

There is a lot of uncertainty in an athletic career. History is full of examples of athletes who went broke soon after their professional career ends.

Therefore, you must understand that financial planning for athletes needs to start as soon as they are drafted.

1. Don’t allow your signing bonus to change your lifestyle.

Players drafted in the first five rounds will receive signing bonuses ranging from $500,000 to upwards of $10,000,000, but the majority of these players will not go directly to the major leagues. Less than half of all first-round picks play in the MLB more than 3 years. Only 65% of first round picks actually make it to the majors.*

2. Manage your spending – you’ll only get paid for six month of the year.

With a big signing bonus, it is tempting for young players to buy big ticket items and live an expensive lifestyle. But baseball players only get paid from April to September (excluding playoffs). A financial plan that includes budgeting can help keep players on track.

3. You will have to fund 50 years of retirement.

The average length of a MLB Career is only 5.6 years.** Thos who are injured will have even shorter careers. You must start to save early and invest carefully to make their money last throughout their lifetime.

4. You will be asked for money regularly – so plan ahead.

Players will be subject to aggressive solicitations from family, friends, and organizations. Unfortunately, approximately 75% of all athletes say they have been exploited by family members or friends for their wealth.*** To avoid significant stress and financial tension athletes should avoid significant donations until they have a plan.

5. Protect your assets from lawsuits.

High income and high net worth individuals are more likely to be subject to lawsuits. Players should consider strategies to protect their wealth.

It was not by chance that you have accomplished your dream of becoming a professional baseball player. You had a game plan and each day you worked hard at becoming the best. Your financial life is no different. Do you have a game plan for your financial success?

* Baseball America

** Roberts, Sam. “Just How Long Does the Average Baseball Career Last?” The New York Times

*** Torre, Pablo. “How (and Why) Athlete’s Go Broke” Sports Illustrated

The information set forth was obtained from sources believed to be reliable, but we do not guarantee its accuracy or completeness. Past Performance is no guarantee of future results.

Transcript
‍
Share this post

Related articles

View all
NFL
Tax

Chargers Players! You May Be Overpaying Taxes: Check Your Payroll Portal

The Los Angeles Chargers payroll team has a policy to allocate 100% of player wages to the state of California, regardless of the player’s resident state. This may be a costly mistake. If you are not a resident of California, only the wages you earn while physically located in California should be taxable by California.
April 3, 2025
MLB
Risk management

MLB Draft 2022: Prep Resources

AWM Capital offers MLB Draft 2022 resources, including podcasts, articles, and expert advice on navigating the draft process, building the right team, financial planning, and preparing for a successful professional baseball career.
June 1, 2021
Tax

Tax Planning For 1st Year Draft Players

Professional athletes can save significantly on taxes by working with a specialized CPA to address year-round planning strategies, including tracking business expenses, optimizing deductions, contributing to retirement plans, managing multi-state taxes, and minimizing AMT exposure.
March 10, 2020
Privacy and protection

Benefits Of The 40 Man Roster

By today's deadline (11:59 PM ET), MLB teams must add eligible minor league players to their 40-man rosters to protect them from the Rule 5 draft, with protected players gaining significant benefits including increased minimum salaries, health insurance, and membership in the MLB Players Association.
February 2, 2020
Risk management

The Biggest Mistake To Avoid Before The Draft

Players should hire a financial advisor before the draft to navigate critical decisions like tax planning, bonus structuring, and wealth management, ensuring long-term financial success beyond what agents or sports advisors provide.
December 5, 2019
Other

The 20-80 Scouting Scale: What Type Of Prospect Are You?

Scouts use the 20-80 scale to evaluate prospects' core skills, ranking players by detailed reports and projections, which transform their follow lists into prioritized draft preferences.
November 29, 2019
Slide content replaced with CMS collection
Slider replaced with CMS collection
Slider replaced with CMS collection
Slider replaced with CMS collection
Your Family Office

We're here to help you navigate.

Our advisors are ready to serve as your Athlete Family Office.

Get in touchMeet the team
Your Family Office
CTA image of man smiling

We're here to help you navigate.

Our advisors are ready to serve as your Athlete Family Office.

Contact usMeet the team
CTA image of man smiling
Join our newsletter.

The athlete family office.

5227 N 7th St STE 18036 Phoenix, AZ 85014

By subscribing you agree to with our Privacy Policy
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
AWM
Family OfficeWealth PhilosophyClient LoginGet in touch
Resources
ArticlesPodcasts
MLB Draft Podcast
Athlete CEO
PGA Players' Podcast
AWM Insights Podcast
MLB Players' Podcast
100-Year Family Podcast
NFL Players' Podcast
League
NFLMLBPGA
Career Stage
View all
NIL
Draft
Debut
Rookie Contract
Arbitration
Free Agency
Retirement
Life Events
View all
Starting your career
Getting married
Having children
Buying real estate
Retirement
Services
View all
Investing
Tax
Philanthropy
Privacy and protection
Risk management
Family coaching
Venture capital
League benefits
Financial planning
Benefits consulting
Investment advisory
Insurance and benefits
Cash management
Career transition
Retirement planning
Tax compliance and planning
Roth IRA
Real estate advisory
401(k)
Travel and relocation
Estate planning and wealth transfer
Education planning
Family financial support
Bill pay
Business management
Bookkeeping and payroll
Luxury purchase advisory
© 2025 AWM Capital. All rights reserved.
DisclosuresBusiness ContinuityPrivacyForm ADV Part 2AFORM ADV PART 3 (FORM CRS)Site by Snapmarket
Reported data current as of September 26, 2024. All images of people on this page are of employees or stock photos. No compensation was provided for any implied testimonial or endorsement. There are no material conflicts of interest. For stock photos it is not known if these persons are familiar with AWM or would endorse our services.