Insights into Sports and Entertainment Wealth Management: A Conversation with Marc Specht

Following the recent appointment of Marc Specht to our advisory board, PSN conducted an exclusive Q&A session with Marc, during which he provided insights into his career trajectory, the unique challenges encountered by athletes and entertainers, and the critical role of financial planning within the sports and entertainment sector.

Marc, can you tell us about your journey to working within the sports & entertainment industry?

“I built my business largely through relationships with accountants and business managers. The firm I had the closest relationship with had deep roots in the entertainment industry and collaborating on entertainment clients became a natural fit. More recently we’ve begun to focus on building our sports practice, understanding that many of the same issues facing entertainers are prevalent in the sports world. Partnering with PSN allows us to continue our philosophy of collaboration with other professionals in the sports industry to care for and educate athletes.”

Within your role as Head of Sports and Entertainment, what excites you about the industry?

“My favorite part of my job is educating others on finances and financial topics. My second favorite part is protecting and caring for clients and watching them succeed. Often times in the sports and entertainment industries, we’re working with younger clients and/or clients that are coming into wealth for the first time. I take great pride in coaching these clients to make good financial decisions and create a long-term mindset.”

From your experience, what are some of the underlying challenges athletes and entertainers face when it comes to managing their finances?

“Without painting all athletes and entertainers with the same brush, there are frequent situations where these clients are receiving a large amount of money over a short period of time. The impulse to create an unsustainable lifestyle is common. We need to work with clients to plan for the long term and ensure that today’s money can hopefully last a lifetime. We also need to realize that the next contract is not guaranteed and we can’t expect that a certain level of income will continue in perpetuity. Proper risk management/insurance becomes a cornerstone of working with athletes and entertainers.”

Athletes and entertainers are often vulnerable to being targeted by scams and general bad advice, due to their status, meaning it’s important for them to establish a trusted network of advisors. In your experience, is there any best practice for establishing a trusted network?

“This is a very difficult predicament for athletes and entertainers. Anyone in the public eye is presumed to have unlimited resources and they are frequently approached by bad actors and even friends and family looking to take advantage. I have found most athletes and entertainers to be kind hearted people that want to be able to help and give back, which makes it difficult for them to say no to these bad actors. It is important to work with established firms and advisors that act in a fiduciary capacity. Firms and advisors with trusted industry accolades/rankings can sometimes help to point people in the right direction. Seeking out referrals from other successful peers can be a good approach, but it is important to do your own due diligence.”

What are the most frequently asked questions you receive from clients?

“What is your performance/track record? In our opinion, this is a misguided question. Choosing a financial advisor based on investment performance is essentially choosing an advisor based on risk. Higher risk tends to lead to higher return, but we believe that athletes and entertainers are already taking on a substantial amount of risk in their career. Preserving and protecting their earnings is often times more important than aggressively growing their portfolios. A more savvy question is “are you a fiduciary?” We are. This means we are legally required to put our clients’ interests ahead of our own. Another question would be “how many clients/how much money do you manage?”. This is an important question because it speaks to experience and ability to work with clients of a certain size.”

Are there elements of financial planning which you feel can often be overlooked, which athletes and entertainers should consider more frequently?

“Insurance. Nobody likes to think about insurance, but in any career where you can lose your livelihood due to injury, disability insurance is very important. We also work with specialty insurance for athletes and entertainers, such as insuring specific body parts (ie a pitcher’s arm). In the same vein, life insurance to protect and preserve wealth for an athlete/entertainer’s family is incredibly important. Beyond insurance, I would say budgeting. When working with high levels of income budgeting is often overlooked; but we want to ensure that clients are not overspending and risking their future should the income stream decrease.”

Working with Premier Sports Network, what are your ambitions for Perigon’s Sports and Entertainment Practice?

“I’m incredibly excited about the opportunity to work with other professionals in the sports and entertainment space to bring well-rounded advice to these clients. We look to be a valuable resource to the network itself as well as consumers of the network and to be a vetted, trusted firm that athletes and entertainers can feel comfortable working with to pursue their goals.”

Marc Specht's expertise to the financial well-being of athletes and entertainers make him a great asset to PSN’s advisory board. We eagerly anticipate the guidance he will bring to our network the sports and entertainment industry. If you would like to connect with Marc or enquire about any of the above, please click the link below.