Going beyond the gold

Keisha Caine Bishop is a 10-time NCAA Track & Field All-American and the mother of Noah Lyles (the 100-meter gold and 200-meter bronze medalist at the 2024 Games) and his brother Josephus Lyles who’s also a world-class runner. Similarly, Joetta Clark Diggs is a four-time Track & Field Olympian and the mother of Talitha Diggs, a USA World Champion, NCAA Champion and American record holder and specialist in the 400-meter and 4x400 relay track events.

Merrill recently had a chance to sit down with both women to talk about some of the important insights and life lessons these two successful athletes have learned – and how they are using those lessons to better educate and prepare their children for sustained financial success.

Both women are clients of Merrill Wealth Management Advisor Patricia Barksdale, CRPC™ of the Boyd, Britton and Pope Group, and a member of the firm’s Sports and Entertainment advisors. These advisors undergo specialized training and continuing education specifically focused on addressing the unique income and investment challenges of athletes and entertainers.

Building a strong core

“When I was a young athlete, we grew up in an environment that focused more on saving rather than investing,” explains Joetta. “My mother owned a beauty shop and my father was the late, great educator, Dr. Joe Clark. So, I didn’t grow up around a lot of wealth and had no real opportunity to make money as a high school or college athlete. I was in my mid-20s before I started earning a living, and it was nothing compared to what young athletes are able to make today.”

“Thanks to programs like Title IX as well as the explosion of social media influencing, women athletes today have financial opportunities that were simply unimaginable back when I was running,” Joetta notes. When she was an athlete in her 20s and 30s, Joetta was at the vanguard of fighting to get college athletes (especially women) paid. To see that finally come to fruition thanks to Name, Image and Likeness (NIL) opportunities makes her feel immensely proud. “Now I have a daughter who’s directly benefitting from that effort. It’s just indescribable.”

Even though athletes may be on a terrific career trajectory, they still need to establish a strong financial foundation early on if they want to build something that will last. Joetta points out that athletes should keep in mind that money is a means to an end — not an end in and of itself. “The goal is to create a lifestyle that aligns with what you want and then figuring out how to make that lifestyle a reality,” Joetta advises. When an athlete is chasing their craft, however, it’s easy to become so tunnel-focused that you simply forget to pay close enough attention to income and expenses.

Preparing for the finish line

How do you get young athletes who suddenly have income flowing in the door to start thinking about the future and budget thoughtfully? How do you temper their natural inclination to go and buy the luxury car, the new apartment or to generally overindulge?

“This is where financial education of both athletes and parents is so important,” notes Keisha Caine Bishop. “The sooner you instill your student-athlete with sound financial planning and budgeting skills, the greater the probability they’ll retain those same skills when the money starts coming in.” Considering that athletes often receive large lump sum payments with sizable time gaps in between those payments, careful and thoughtful budgeting takes on even greater significance. “In the case of Noah and Josephus, they receive large payments twice a year — so they need to budget for six months of expenses at a time,” Keisha points out.

“For young athletes, I often emphasize the importance of paying your future self first,” counsels Merrill’s Barksdale. “It’s one of the most important pieces of advice that advisors can deliver – a subtle reminder that athletic careers have an expiration date. When the time finally arrives to transition to the next chapter of your life, you should be confident that you’ve set aside enough money to maintain the same lifestyle you’ve been living as an elite athlete.”

7 core financial steps

Every athletic career is going to be different. To help best prepare for long-term financial success, consider the following steps to get started:

1Focus on financial education.

Work with someone to help you build knowledge around basic financial concepts like saving, spending, investing, and the effects of taxes. It’s tempting for young athletes who are suddenly handed a lot of money to splurge on cars, jewelry, etc.; especially elite athletes who often make large sums of money over relatively short careers. Yet, if you don’t truly understand where your money is coming from and where it’s going, you may struggle when your successful athletic career comes to an end.

2Get help structuring your business properly.

Your athletic career is a business, and needs to be treated that way. Keisha points out that when her sons signed their endorsement deals, they created an LLC which they structured as an S Corp. This way, everything they pay themselves (Noah and Josephus are W2 employees of the business) becomes 100% tax-deductible. For retirement planning, the brothers established separate accounts.

3Adopt a planning mindset.

Talk with your financial advisor about long-term and short-term goals. Track monthly expenses, savings and investments. Set aside money for out-of-pocket medical costs since athletes tend to spend a lot on preventative and injury-related healthcare. And don’t forget taxes. Many athletes (including Talitha, Noah and Josephus) are considered independent contractors rather than employees – so there are no taxes withheld. This means you’ll need to make quarterly estimated tax payments for all the income you receive each quarter.

4Assemble a team of specialists.

Similar to how you have a team to support your athletic career, consider building a team of financial professionals. This includes a financial advisor who can help you with long-term planning (because athlete income flows won’t last forever), as well as a CPA who understands the specific tax deductions and international tax laws (given that athletes often perform all around the world and every country has its own tax rules and regulations). Think about what kind of skills each advisor brings to the table. Do they think about your long-term goals; not just your short-term ones? Will they still be there supporting you when your athletic income starts to taper off? Do they clearly explain how your money is working for you?

5Don’t sign deals based solely on money.

Implement a litmus test before signing any brand deals by asking: “Is this a brand I genuinely believe in and which aligns with my personal values?” If not, walk away. Your reputation is everything, so stay true to who you are. You are your own brand that you need to protect.

6 Demand communication and transparency.

Don’t completely hand over your financial affairs to others. It’s fine to delegate day-to-day matters to a parent or advisor, but remember it’s your money. Stay informed. Push for regular communication, transparency and accountability from the team of advisors you’ve assembled. And encourage them to offer feedback and advice that will hopefully help get you back on track if you begin to drift from your goals.

7Give back to the community.

It’s a great way to foster empathy and help you stay grounded. Keisha worked with Noah and Josephus to set up a 501(c)3 nonprofit which is devoted to supporting physical and mental health awareness. Giving back to the community financially is important; but so too is staying engaged. Devoting time and energy to bettering the lives of others can help you stay focused on the things that truly matter.

At Merrill, we work with athletes and sports professionals of all types — having developed a keen understanding as to the unique aspects of an athlete’s earnings and career trajectory. Our skilled professionals are committed to staying up-to-date on emerging opportunities, rules and regulations that directly impact your profession. We’re here to help you navigate your financial journey during your career and support your wealth management needs when you transition from athletics to whatever comes next.

Reach out to us for a 1-on-1 conversation and let us help you build a financial strategy that works best for you.

Merrill offers comprehensive services with an understanding of the unique challenges of professionals in the sports and entertainment industries.