Hockey professionals seem surrounded in a mystique of glamour and lore, but when the Zamboni clears the ice after the game and the players head home, unique financial complexities faced by these athletes are very real and very important.
Turning ones earnings from a career as a pro athlete into a lifelong source of financial wealth is no simple feat. A short earning window, coupled with the challenges of cross-jurisdictional taxation, makes players susceptible to common financial mistakes. Fragmented advice, coming from advisors with good intentions but may be working in ‘silos’, can add real risk to a hockey professional’s long term outlook.
And this is precisely why Kent Manderville has taken on the role of Director at the IP Hockey Family Office—the branch of IP Private Wealth responsible specifically for working with hockey professionals.
Kent is a retired NHL player with over 700 games in his career, which gives him a unique and firsthand understanding of hockey professionals and their finances. Coupled with his education and his status as a Certified Financial Planner, he’s a hockey player’s MVP. Today, Kent and I talk about how the family office model can benefit hockey professionals and realize financial longevity.
If you’d like to listen to the entire interview, head to the IP360° podcast here.
IP360°: We’ve talked before about the concept of family office. But what is a hockey family office?
Kent: The family office concept wasn’t something that I saw when I was playing in the NHL, and it’s really something that I wished I had when I was playing. A family office is essentially a board of advisors that has integrated and comprehensive wealth management; in this case, the model has been designed for hockey professionals. We make sure there’s no gaps in your game plan, no unforseen risks, no train wrecks that are hiding. This is a way of mitigating those risks and enhancing the value of the wealth of our hockey professionals.
IP360°: Can the Hockey Family Office work with my existing experts?
Kent: Yes, we can. We’re not in the habit of destroying perfectly good relationships. We’re happy to work with your existing professionals. At the end of the day, it’s about getting the best people in line for for that player or coach, making sure there are no gaps in their situation. It’s a small earning window, and we want to make sure that that is maximized for them.
IP360°: Can you explain the CFA, and the CFP programs?
Kent: The CFA is the Chartered Financial Analyst designation; it’s a rigorous program considered the gold standard in wealth management. And so I’ve successfully passed those three exams. It was a challenge, but well worth it. The CFP is the Certified Financial Planner designation, and it’s more broad-based around financial planning. Those two designation provide the technical background that I can help clients with. And a lot of our team members have either of those designations.
IP360°: When a new player signs with a team, they can be kind of overwhelmed with solicitations and offers from experts, right?
Kent: Oh, absolutely. I mean, when I came into the NHL in the early 90s, there wasn’t even salary disclosure. And now it’s obviously not the case; whatever you signed for is very much in the public domain. That money attracts a number of different people, and a lot of those people are not qualified, or they may not have your best interest at heart.
I found it was really hard to find a trusted professional when I was playing. People come out of the woodwork, and it becomes a challenge. How do you know what questions to ask? How do you know who to trust? My first agent–on the player agent side–I had him for maybe two years. And I quickly realized it was not a good fit; but it took me two years to find that. Thank goodness, there wasn’t much damage done. But those are the challenges that the players have. And that’s what we bring to the table: that best interest, and that technical knowledge..plus the experience of having been there, done that.
What is the IP Hockey Family Office?
IP Hockey Family office is a wealth management firm devoted to the career and financial wellbeing of hockey professionals. Our ‘family office’ model is designed to get all your advisors working collaboratively so that you end up with one clear gameplan. Our director, former NHLer Kent Manderville, ensures that each plan takes into account the unique nature of your hockey career and earnings, ensuring that your personal, athletic, and post-hockey goals are included in your wealth planning process. Learn more here.
IP360° What types of advisors make up the Hockey Family Office?
Kent: It depends on what is required for the client, because things change as you go through the evolution of a hockey career. It’s different when you’re on an entry level deal, versus when it’s second or third contract. It’s different if you’re married, if you have kids; what jurisdiction are you in? What’s your tax situation? What’s your risk tolerance like? There’s all these different components that we have to keep in mind. But usually, cross border tax accounting, estate planning, risk management, insurance solutions, and portfolio management are part of the advisors.
IP360°: How do you know when it’s time to sit down and how to have a real talk about this 360-degree concept of planning?
Kent: Yeah, so I find when you’re in your entry level deal a lot of players go from starving student to having some money. So usually, it’s time [to talk] early on. I’ve talked to a number of younger players, and they’ll say, “I’m going to be really careful with my money: I’m not going to spend it all”. While that sounds great, it’s not a wealth management strategy. Choosing a less expensive car or spending less on rent is not how you preserve, protect, and prudently grow your money.
Early in your career you see that the game of professional hockey is very different from what you grew up with. It’s a multi billion dollar business. And because of that, you should treat your career and earnings as a business—that’s why you need professional advice. At the entry level, players often realize something’s up when tax time comes and they have to file taxes in 13 or 14 jurisdictions. It’s a realization that they need help.
IP360°: So the Hockey Family Office is really talking about like a whole lifestyle wealth, is that right?
Kent: Absolutely. We’re a very process-driven firm, and we go through a process called the IP360°° Pro. ‘IP’ stands for integrated planning–and this really is a full 360° approach that touches on the various aspects: tax planning, estate planning, risk management.
But you touched on a very important thing too: general wellness and career transition. Players go from a very scheduled, itinerant life. I remember trying to show people the itinerary for a game day, and it was like, 9:30am bus, 10:30am on the ice, 11:30am meal, nap from 2:00-4:00, snack. It was almost like primary school where everything was laid out for you. But that was ‘normal’, and that’s what you did. Then it was preseason, regular season, playoffs. Then you’re back into training in the offseason, rinse repeat. It’s so easy to get caught up in the day-to-day while really neglecting your mental wellness, your family, your relationships with your kids.
And those pieces absolutely affect your wealth, and your health, and that can be prevented with some foresight and some proactive steps. That’s the unique perspective that I bring to the table: a 16 year NHL professional career. That’s where I can help the next generation of players really navigate those difficult waters.
IP360°: Alright, one last crucial question: you’re sitting at home watching your favorite team. What jersey is Kent wearing?
Kent: [laughing] I’ll just say there’s nothing better than watching a great hockey game. I love watching the current crop of superstars, whether it’s Connor McDavid, Austin Matthews…I mean, this young group of kids that they have coming up, it’s really fun. So I just love the game of hockey. That’s what it was all about when I was a little kid playing on the outdoor rink or playing street hockey. I have a passion for this game. And this is a way for me to give back.
IP360°: Thanks, Kent; I can really hear that passion you have for the game.
If you’d like to reach out to Kent and his team, connect via IP Hockey Family Office site. You can also read more info on the IP360° philosophy to wealth management for both players and other families.
