Winning Tax & Financial Advice for Professional Athletes & Entertainers
Professional athletes and entertainers often come into wealth quickly, at a young age and without the financial resources and support they need to put themselves in the best long-term financial position. Regardless of their age or stage in their careers, these high-net-worth individuals can benefit greatly from the help of a trusted tax and financial advisor.
Hamilton Tharp has served professional athletes, entertainers and their agents and coaches since our founding in 1981. We realized right away that our services are ideally suited for these individuals and related businesses. We help them achieve their financial objectives through the following services:
- Tax planning and return preparation, including international and multi-state considerations
- Financial planning, including budgeting, cash flow projections and investment decisions
- Contract offer evaluation and negotiation assistance
- Legal entity, retirement account and charitable foundation set-up
- Accounting services
- Estate and trust services
By working with us, athletes and entertainers realize the following benefits:
Lifestyle Maintenance During Career Transitions –
We have developed budgeting and cash flow projection models for professional athletes that demonstrate the importance of investments given their relatively short period of high-income earnings. We help athletes accumulate wealth so that they can transition into a second career while maintaining the lifestyle they’ve become accustomed to.
Financial Security –
Highly compensated individuals may enjoy luxurious lifestyles, but they also bear increased financial risks. In many unfortunate cases, athletes and entertainers have lost significant wealth because they failed to comply with applicable tax laws, made hasty or ill-advised financial decisions or let their money fall into the wrong hands. Our clients count on us to provide an expert opinion and unbiased perspective for their unique financial opportunities and challenges.
Tax Savings –
Through nearly 40 years of providing services to professional athletes and entertainers, we have developed unparalleled expertise in the tax laws applicable to this group of individuals, as well as the most tax-advantageous strategies for their specific circumstances. For example:
- Residency: As experts in choice of residency, we know what steps are required to ensure residency in the chosen state, and we have helped clients achieve significant tax savings by successfully establishing their residency in tax-free states. After developing an overall plan in our residency analysis, we follow up on an annual basis to ensure compliance with residence requirements.
- Multi-State and International Considerations: Hamilton Tharp prepares state taxes in almost every state and offers experience in multi-state tax planning and compliance that is virtually unmatched. We help athletes and entertainers understand where and when they will owe taxes to avoid surprises and penalties. Many of our sports clients have saved hundreds of thousands of state-tax dollars by following our recommendations. Although this is not possible in every case, we help professional athletes minimize the ever-growing tax burdens that stem from having to file wherever they play. We also serve clients who play internationally and are well equipped to evaluate the impact of foreign taxes and credits.
- Business Entities & Retirement Plans: Working with agents and sports marketing companies, we have developed tax-advantaged techniques that allow athletes and entertainers to defer taxes by establishing business entities and retirement programs for their extra earnings, and paying fees to family members when appropriate.
- Charitable Foundations: In 1985, we were one of the first firms to set up and receive exempt status for the foundation of one of our professional athlete clients. Although now a popular technique with many athletes and entertainers, our pioneer efforts in this area have resulted in the development of informative models and 100% favorable determinations from tax authorities.
Comprehensive Contract Evaluation & Negotiation Assistance –
During critical contract negotiations, Hamilton Tharp provides an important perspective on the tax and cash flow considerations of contract offers. Very few agents have the training in financial and tax analysis that we offer. We are regularly asked to evaluate contract packages for our clients, and we have developed a computer model that provides a comprehensive comparison of alternative contract scenarios. With Hamilton Tharp rounding out their contract negotiation teams, our clients are confident that they’re evaluating offers from all angles and securing the best deal for their future.
Sound Investment Advice –
Hamilton Tharp has worked with many of the best investment advisors in the country, so we are in an ideal position to help athletes and entertainers interview, evaluate and select advisors who are experienced, respected and best suited for them. Our firm then stays involved to track and monitor investment performance and hold advisors accountable.
The Teammate that will Command Financial Victory
Athletes and entertainers need an independent professional they can call upon for advice, not just so they can stay focused on using their talents to make the most of their careers, but also to optimally respond to the host of unfamiliar opportunities and challenges that accompany newfound wealth. With the help of a trusted advisor, they can retain and grow their wealth for years and generations to come.
Contact us to learn more about our tax and financial planning services can help professional athletes and entertainers meet their financial goals.