Helmut Quast in conversation: “Many active athletes are inexperienced in matters of wealth... and often have little interest.”

Private Banking Magazine: We often hear that professional athletes, despite high earnings during their careers, run into financial difficulties later on. What do you see as the main reasons for this development?

Helmut Quast: The main causes are often unprofessional asset management and excessive spending during their playing days. Many athletes are relatively young during their playing days, inexperienced in financial matters, and sometimes even uninterested. This encourages poor decisions. If the environment is also demanding—often including the family—money also flows in this direction.

In addition, careers often end sooner than the athlete expected. Perhaps due to an injury. Or because, to the player's surprise, a contract is not renewed and no new club can be found. Then the high compensation from sports clubs stops flowing, and the endorsement contracts gradually expire.

Many athletes achieve high incomes within a short period of time. Early and professional financial planning seems essential. How do you specifically support top athletes during this phase?

Quast: We use the same tools that we apply to all our other clients at HQ Trust. Cash flows, including tax burdens and expenses, can be simulated relatively easily. From this, we derive asset development. This then forms the basis for an investment plan, which we coordinate with the athlete for their active career and subsequently implement. Depending on the contract term, this plan is subsequently regularly adjusted to reflect changes in the underlying circumstances. These include, for example, tax changes, changes in family circumstances, or relocation abroad.

Are there any Bundesliga clubs that provide their players with particularly good financial support or even offer structured support?

Quast: No, we are not aware of any such clubs.

Can you give examples of athletes who have made a particularly successful transition to their post-active career? In your experience, what made the difference in these cases?

Quast: Mario Götze is certainly one of our clients. He recognized the challenges of his relatively short playing career early on and positioned his assets accordingly. In addition, Mario Götze has a clear idea of ​​what he wants to do after his playing career as a professional athlete and is working purposefully toward that goal.

How large is the market segment of top athletes for you, and at what asset volume do you assume management?

Quast: The segment is relatively small, but it's growing. For top athletes, especially at the beginning of their careers, the volumes are lower than for a company seller, who often has double- or triple-digit millions in their account at once.

Depending on current income, we are still happy to take on such mandates, as this allows us to avoid common mistakes. And athletes can achieve financial success more quickly than if we wait until certain amounts are reached. Nevertheless, it's no different for athletes than for other clients: the larger the assets, the greater the leverage we can apply through our work and advice—and thus also the financial success.

About the interviewee:

Helmut Quast is Managing Partner at HQ Trust and head of the Düsseldorf and Berlin offices.