Morgan Stanley courts athletes, entertainers with new wealth unit

Brokers take a three-day training program on how to cater to those clients.
NOV 20, 2014
By  Bloomberg
Morgan Stanley, whose brokerage helps manage more than $2 trillion of client assets, started a new unit that focuses on professional athletes and entertainers. The division has 69 advisers and will add a few more within the next year, Drew Hawkins, head of the Global Sports & Entertainment group, said Thursday. Many of them already had been working with celebrities, and brokers took a three-day training program on how to cater to those clients, he said. Athlete pay has surged in recent years, with Giancarlo Stanton, a Miami Marlins outfielder, poised to sign a $325 million contract over 13 years, a Major League Baseball record, according to CBSSports.com. Kevin Durant, the National Basketball League's reigning most-valuable player, re-signed as a Nike Inc. endorser with a contract worth $300 million over 10 years, Bloomberg News reported in September. “The size of these contracts and the amount these individuals are earning tends to increase on a daily basis,” Mr. Hawkins said. “Celebrities and entertainers and those connected with those industries in a lot of cases make a lot of money, but they also have a lot of unique circumstances.” Morgan Stanley will provide customized loans to the individuals and their outside businesses, offer insurance against injuries or voice damage and give advice on philanthropic endeavors, Mr. Hawkins said. He declined to identify any of the firm's celebrity clients. Morgan Stanley is also teaming with PricewaterhouseCoopers to offer financial literacy education for major college athletes next year, Mr. Hawkins said.

Latest News

For one-fifth of polled Americans, disputes at holiday gatherings lead to estate planning fallout
For one-fifth of polled Americans, disputes at holiday gatherings lead to estate planning fallout

Survey by Trust & Will reveals the touchiest subjects for families, and how conflict dynamics differ according to age and region.

A trade war on the horizon complicates fixed income
A trade war on the horizon complicates fixed income

Investors should "stay light on your feet," the head of US fixed income at RBC says.

BlackRock, Vanguard, and State Street sued in Republican anti-ESG action
BlackRock, Vanguard, and State Street sued in Republican anti-ESG action

Federal complaint filed in Texas court by a consortium of 11 states argues the fund giants used their market power to pressure energy companies and ultimately hurt consumers.

More financial advisors leave B. Riley
More financial advisors leave B. Riley

B. Riley Financial's share price has dropped more than 68 percent over the past 12 months.

Edward Jones advisors depart for Equitable, Avantax
Edward Jones advisors depart for Equitable, Avantax

The defectors, separately located in the Chicagoland and Texas, reportedly managed more than $260 million combined.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound