In the past few weeks, there have been a handful of news reports regarding active or retired athletes’ off-court business interests, each of which has exhibited a good example of when athletes transition into moguls by turning their brands built on the court into off-court empires. in the summer of 2023, Messi could acquire a 35% ownership stake in Major League Soccer’s Inter Miami CF, joining the club as a player-owner. This allows athletes to benefit from the growth of the enterprise from use of the athletes’ endorsement and does not require a cash investment from the athlete or cash compensation from a small, growing company that may not have the resources on hand to pay such an athlete’s normal “take”. When it comes to the compensation aspect of commercial and endorsement deals for athletes, the agreements can oftentimes become complex and require a number of areas of proper planning. It is important that an athlete have the proper advisors to help advise on the tax, financial planning, and legal matters so that the athlete’s off-court empire grows while the pitfalls are avoided.

Source: Forbes June 10, 2022 21:49 UTC