How athletes can maximize and help protect their income during their prime earning years
Executive Director, Wealth Advisor
J.P. Morgan Athlete Center of Excellence
Build consistent cash flow: Plan for uneven income by budgeting across seasons and preparing for taxes early.
Start estate planning early: Even if retirement feels far away, it’s never too early to put a plan in place to make sure your family and assets are protected.
Think beyond your sport: Begin building the foundation for your next chapter while you're still playing.
Few careers generate income as quickly or unpredictably as professional sports. Unlike careers that stretch across decades, professional sports have shorter timelines. A contract may pay millions upfront. Endorsement deals might arrive in clusters. These high-earning years may only last a few seasons.
Whether you’re in the NFL, WNBA, MLB or building a college Name, Image and Likeness (NIL) brand, the financial decisions made during peak years can shape the next several decades and be the difference between future financial freedom or potential financial hardship.
This article shares practical ways to manage your money, help protect your future and stay more confident as your career evolves. From handling cash flow to preparing for what comes after sports, it’s about using the momentum you already have to keep building.
Learn how to build your financial knowledge as an athlete
Gain insights into managing your finances throughout your athletic career with guidance from J.P. Morgan Wealth Management’s athlete center of excellence.
Managing cash flow and investment plans as a professional athlete
Creating consistent income from irregular paychecks
Athlete earnings don’t always follow a predictable schedule. You might receive income through signing bonuses, prize money, performance incentives, appearance fees or endorsement checks. Some payments come in a lump sum, while others arrive at different points in the year. That can make it tempting to spend freely or assume there’s always more coming.
Planning ahead with clear monthly budgets can help you manage the ups and downs of income, living expenses, taxes, travel costs and family responsibilities. For example, some athletes choose to “pay themselves” a fixed amount each month, even if their income fluctuates. That gives them more predictability and control, especially in off-seasons or during transitions.
Professional athletes may also be required to pay estimated taxes throughout the year, not just at tax time. And, it’s not just about how much you earn: It’s also about where and when you earn it. Your team likely withholds state taxes for away games, often called “jock tax.” It’s generally advisable to confirm whether this applies and lean on the guidance of a Certified Public Accountant (CPA) and an advisor who understands multi-state filing and income timing strategies.
Turning income into long-term growth
Investment planning can feel far off, especially when the focus is on maximizing your potential as an athlete. But how your money grows may have just as much impact on your future as how much you earn today.
Some athletes, like LeBron James, made headlines early in their careers for turning down big upfront deals in favor of long-term partnerships. He was thinking about how today’s decisions could lead to future ownership and wealth, not just immediate paydays.
That same mindset can apply to your investment plan. Whether you’re starting with a simple retirement account or building a diversified portfolio, starting early with consistent, tax-aware investing can help create stability for whatever comes after the final whistle.
How can professional athletes build an estate planning foundation?
Supporting loved ones while protecting yourself
It’s natural to want to support the people who’ve supported you, especially once you reach a level of financial success that may be new for your family. Whether that’s helping with housing, paying off debt or covering education costs, there’s a difference between helping loved ones and putting your own future at risk.
NFL veteran Martellus Bennett explained in an interview with Chase Bank how he advised his brother, Michael – also a NFL veteran – against buying houses for their parents and in-laws early in his career. "It's great to get your parents a house," Martellus said. "But, people are so busy tending to other people's gardens that they grow all these weeds in their own garden. Sometimes you've got to take care of your own weeds."
That starts with asking a few key questions:
- Who depends on you financially?
- What would happen to your assets if something unexpected occurred?
- Have you set up the right protections for yourself and your family?
Putting basic estate planning in place
Estate planning isn’t only for people nearing retirement. In fact, having the right legal documents in place early can make a big difference down the road. Consider:
- A will, which outlines who receives your assets after your death
- Gift planning, which involves evaluating how to share wealth with your loved ones, including thinking about the tax implications
- Philanthropy, to support causes you care about and which can often be done in tax-efficient ways
- Insurance, to protect your income and family
- A trust, which may provide more privacy and control over how your wealth is managed
- Beneficiary designations, especially for life insurance and retirement accounts
- Powers of attorney and health care directives, which authorize someone to make decisions on your behalf if you can’t
If you’ve earned income through NIL deals or if your name, image and likeness have commercial value, you may also consider tools to protect and pass on those rights. In some states, NIL is treated like other intellectual property, and planning ahead can help reduce confusion, conflict or tax burden later.
What can professional athletes do to continue maximizing earning potential post-career?
Even if you play a full career, the number of years you’ll earn sports-related income may be limited to only a short portion of your life. That’s why many athletes begin planning for the next chapter while they’re still playing.
Many athletes are natural entrepreneurs. From media appearances to coaching, brand-building, investing or nonprofit work, there are often many ways to use your experience and voice beyond the field. Advisors can help vet business opportunities, evaluate tax consequences and align your ideas with the resources to support them.
Preparing for a lifestyle shift
It can also help to right-size your budget after retirement. Spending levels that made sense during a peak earnings year may not be sustainable later. Reviewing your cash flow and expected future income with an advisor can help you create a plan for what life looks like post-career, from where you live to how often you travel to who relies on your income.
Some athletes may choose to set up “buckets” of money, with one for short-term needs, one for medium-term goals (like a house or business) and one for long-term investments. This way, they’re not relying on the same pot of money for every need.
Building your network while you’re still playing
Your current platform, whether it’s on a court, field or social media feed, is powerful. It can open doors not only for deals today, but for opportunities tomorrow. Whether it’s with a brand, a mentor or a financial advisor, building a network early can give you access to people who understand your vision and can help bring it to life.
The aforementioned Bennett brothers, who both played in the NFL, used their platform to launch businesses, support underserved youth and build creative agencies. That didn’t happen overnight. It started with identifying what mattered to them and using their current career to lay the groundwork.
If you’re thinking about the future, now may be the right time to:
- Join a business or nonprofit board
- Start a personal brand or media platform
- Invest in startups or real estate
- Take online classes or attend workshops
- Connect with a mentor or career coach
Choosing your next community
Many athletes relocate for personal or professional reasons. That move can affect your taxes, estate plan and property ownership. For example, some states have higher income or estate taxes than others, and different rules apply depending on whether you’re considered a resident there. If you’re thinking of moving, it's worth reviewing the logistics of redomiciling and state-by-state tax differences. You should consult with a tax professional to understand the specific tax implications as you’re planning your move.
The bottom line
Athletes are used to training, competing and making quick decisions. But financial planning isn’t a sprint. It’s something that builds over time. It’s about staying in control of your money, your goals and your options. With the right structure in place, your prime earning years can open doors for the rest of your life.
A J.P. Morgan advisor can help you explore what’s possible, ask the right questions and tailor a plan that grows with you, on and off the field.
Frequently asked questions about how athletes can maximize and protect their income during their prime earning years
Athlete income can be irregular, with large payments coming at once. Planning helps ensure those funds last throughout the year, while also covering taxes and savings goals.
The earlier, the better. Athletes with significant earnings, dependents or assets benefit from putting key documents in place during their playing years.
NIL stands for “Name, Image and Likeness.” It allows college athletes to earn income through sponsorships and appearances. These deals often come with contracts and tax obligations, which makes planning especially important.
Relocating can change many things, including income and estate tax considerations. Some states also have different rules about property ownership and residency, so legal and tax advice is important before making a move.
Start building skills and exploring interests during your career. Whether it's a new business, coaching or another role, laying the groundwork early can make the transition easier and more rewarding.
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Executive Director, Wealth Advisor
J.P. Morgan Athlete Center of Excellence
