Make the Most of Your Earnings

Professional tennis players have unique considerations when it comes to earning and managing money. You operate independently, meaning you are in charge of your own business; your performance, including your personal brand, are your products. When it comes to earning a living, conducting your business independently means you have different considerations and planning challenges than someone who earns a salary. You may earn income from multiple sources at different times, like tournament winnings or sponsorship payments. In addition, you likely have fixed expenses like mortgage payments or coaching fees and variable costs like travel. 

Developing a system for managing your money is a way to help minimize financial stress so that you can keep your focus on your game. Consider these moves to help build a solid financial foundation.  

1. Know the different ways to get paid

As a professional tennis player, you have opportunities to make money in several different ways, including: 

• Tournament prize money
• Federation subsidies 
• Brand or product endorsements
• Personal sponsor-related contract bonuses
• Other tennis competition earnings (exhibitions, club matches, appearance fees)

In order to keep track of your money, take some time to calculate your earnings. This should include all payments you receive, including your regular income or occasional payments from winnings and sponsorships. Consider making a spending plan for regular costs like housing, food, equipment and coaching fees to help keep track of the money coming in and going out. When your earnings are more than your expenses, you’re ready to start saving and investing to build a solid financial foundation for yourself. 

2. Avoid money-management failures

Professional tennis players are not immune to financial failures. ​There are many examples of athletes who were at the top of their game but didn’t turn their success into financial security. 

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Since your income can vary significantly based on your tournament results and other opportunities over time, you need to be especially disciplined about how you manage your money. While you can enjoy the benefits of your success, you also need to be ready for setbacks. For example, if you are injured or have a run of poor tournament performance, you’ll need enough savings to cover your regular expenses and any other costs you may face while recovering. A good rule of thumb for aspiring young professional athletes is to spend no more than 60% of your after-tax income.

3. Set up your next act

Right now, tennis is your life. It can be hard to think about anything else. But here’s a secret many A-list athletes know: Success in your sport can open doors to new opportunities and long-term financial security. In fact, some of the world’s most decorated athletes are also running their own companies, wellness brands and even restaurant franchises. Some pivot into lucrative broadcasting, coaching or talent-management careers. Others focus on helping others with charitable work. After all, even legends have to retire at some point. Cultivate opportunities now by developing new skills, honing your personal brand, tapping into your network and pursuing your passions.

4. Work with financial professionals who understand your needs. 

You hire coaches with qualifications, references and proven track records.  When choosing your financial team, it is critically important to use the same approach. Professional Financial Advisors can help you with a wide variety of financial issues, including saving for the future, managing your spending and creating a strategy for your investments. Look for a Financial Advisor who has experience working with professional athletes, so they understand your needs. 

Planning for a Bright Future 

As you dream about a long, lucrative professional tennis career, it’s also a good idea to work on building a foundation for financial stability. With careful planning, sound professional financial advice and wise decisions, you can continue to enjoy the benefits of your tennis career long after you've made your final serve.

Personalized Financial Advice

Build a plan to help you navigate your complex financial decisions and achieve the future you want, with a Morgan Stanley Global Sports and Entertainment Financial Advisor dedicated to serving the needs of professional athletes.

Start the conversation: whatmovesyou@morganstanley.com