The Morgan Stanley headquarters in New York.
Shannon Stapleton | Reuters
Morgan Stanley has joined the National Football League Players Association's financial planning network, the two sides announced on Friday.
Morgan Stanley's director of global sports and entertainment, Sandra Richards, will lead the company's advisors on the program, which aims to help NFL players expand their finances and investments beyond their game days.
Morgan Stanley will leverage its longstanding partnership with the NFLPA to further raise awareness of its wealth management division through the union's financial advisor registration program.
The pact is a partnership agreement with no upfront fees and gives Morgan Stanley more access to the NFLPA's network of players and events.
Richards said she wants to get players to "act differently" when it comes to their finances, and use the Covid-19 pandemic as a "living example of what can happen other than a trade or" related to the unexpected God forbids injury, "she said.
"This moment is a class," said Richards. "This moment should be the wake-up call.
Repair the damage
The NFLPA's program got its wake-up call in 2016 when it was revealed that a consultant was the culprit for a $ 43 million loss after bad investments were made in electron bingo machines.
Dana Shuler, senior director of player affairs and development for the NFLPA, said the union had "gone through a" constant state of improvement "after the loss.
Changes included requiring advisors to hold a CFP or CFA and other insurance requirements to ensure loyalty (insurance against advisors who commit fraud).
"It's a big difference," said Shuler, adding that the consultants are "committed to holistic financial planning, not just selling products. We wanted comprehensive financial planning for the players."
Although individual consultants can still enroll in the NFLPA program for a $ 2,500 membership fee, the program was readjusted in October to add larger "institutionalized" financial firms that do not have to pay a fee.
Shuler said the NFLPA only offers eight slots to prominent firms, four of which were already occupied by Goldman Sachs, Alliance Amber, Bessemer Trust, and now Morgan Stanley. Shuler said the NFLPA doesn't expect to fill the remaining four spots for "some time".
When asked if the players have more confidence or the NFLPA's program after what happened in 2016, Shuler said early feedback was "they like it".
"The participating institutions are highly regarded and some of them have made a name for themselves working with professional athletes. I think that's one more thing that is good for the players," she added.
Sandra Richards, Head of Morgan Stanley Global Sports & Entertainment
Source: Morgan Stanley
Some players have already canceled the 2020 season due to concerns about Covid-19. Receiving funds will be important in the New Year for those who sit outside. In addition, Richards notes that more athletes are "more creative at building additional revenue streams" by using a recently signed stock agreement, such as the new stock agreement from Kansas City Chiefs quarterback Patrick Mahomes.
Richards said the global sports and entertainment division, which manages more than $ 100 billion, will add about 50 consultants to the NFLPA's program.
Given that players are getting involved in more promotional and stock deals as name, image, and likeness continue to drive sales for athletes, Richards said having a trusted advisor is an "important seat at this table" when building your brand and want to maximize your brand. " Visibility.
"We're in a different time and a different age," she said. "There are so many options out here that you can no longer be satisfied with what you have."
Updated to show that Richard's division has more than $ 100 billion under management.