This year marks the inaugural PGA Tour University class that will have immediate access to the Korn Ferry Tour and Mackenzie Tour. Like with any new system there have been lots of questions, plenty of conflicting thoughts, and some incorrect information swirling, that may influence players decisions whether to turn pro or come back for one more year of college golf. We decided to go straight to the source.  

Senior Director at the PGA Tour and creator of the PGA Tour University, Brendan von Doehren, joins us to walk through the genesis of PGA Tour U, how the system works, and clarifies some of the questions and misconceptions we have been hearing on the ground. If you are a player, coach, or part of their inner circles you do not want to miss this episode. 
 

Episode Highlights

• (1:58) How was PGA Tour University created?
• (5:23) Who had input and was consulted?
• (8:42) Benefit to the players and the Tour?
• (11:32) Who is eligible in the rankings?
• (13:16) How do the rankings work?
• (14:00) What events count and why?
• (17:44) What access to Korn Ferry and other tours is available?
• (26:48) How much movement in the rankings is expected the last couple months?
• (31:23) How will the rankings look next year?
• (34:29) Ho will players in the rankings this year who come back, fit in to next year’s rankings?

Professional Golfers have one of the most unique tax situations of all individuals. We tend to see the same mistakes made over and over when we review new clients previous tax returns. It typically comes down to a lack of knowledge and expertise in how to work with athletes. Your team should be doing everything possible to keep as much money under your control now and minimize your tax liability over the long haul as well.

In this episode we will discuss the three most common Mistakes that we see when it comes to taxes. There are different strategies that professional golfers should be utilizing in high tax years and low tax years, and there are some foundational planning items that should be in place year-round. Why pay more in taxes than you have to?!

Episode Highlights

• (1:10) The two things we see wrong with quarterly estimated taxes
• (3:49) Why your tax planning should be a 365 day per year endeavor
• (4:30) Not taking advantage of retirement plan contributions
• (5:13) SEP IRA vs individual 401k
• (8:37) Actions in a low tax year
• (10:31) Mistakes with residency days

Download your free resource at awmcap.co/pga15

Have you ever wondered why ultra wealthy families invest in private real estate? Why wouldn’t you just buy your own rental property or invest in a public REIT (Real Estate Investment Trust)? How do you even find a quality partner to invest with? What types of real estate investments are out there? As a professional athlete, when would this type of investment make sense for you?

In this episode, we talk with experts from two different private real estate firms to get an insider’s guide on what to look for in a deal, how to evaluate it, and how to choose a partner to invest with. And they both happen to be former professional athletes as well. Dan Kennedy is a Partner at Driven Capital Partners and a retired MLS player, and Peter Tomasulo works for Lyon Living and is a retired PGA Tour player. I learned a lot in this interview and hope you do, too.

Episode Highlights

• (1:00) Why Dan started investing when he was a MLS player
• (5:14) "I thought I was going to play until I was 50 years old and then I was just going to be able to do whatever I wanted." - Peter Tomasulo
• (13:05) What are the different types of real estate investments?
• (22:57) Why do high net worth families and successful athletes invest in RE
• (23:54) Why not use a public REIT?
• (29:08) What to look for when evaluating a new investment?
• (33:06) When does an investment like private real estate fit in my financial structure?

The stakes are higher on Tour: the competition, the opportunities, the money. With this comes even more of a need for expert advise and planning. As an elite athlete, you NEED and DESERVE to have a team that is built to serve elite athletes. Unfortunately, the existing landscape of financial institutions is built to serve the general public.

In this episode we will explore what a wealth management team should be doing for you. You have a unique situation that requires unique solutions. You also have a unique opportunity to secure your financial future at an early age and have a large impact on your family and community. Make sure your wealth management team already understands the complexities that you face, and that their incentives align with your goals.

None of us are walking down the fairway bragging about the returns we got last year with an index fund, or the interest we are getting in our bond portfolio. Whether we should or not is another topic. But everyone seems to know someone that knows someone who can get them in on a private deal that is sure to have amazing returns with very little downside.

Private investing versus public investing is a very different endeavor. Over the next few episodes we will dive deeper into the types of private investments, when they may be appropriate, and why they should be considered. We will have experts in each segment join us to uncover the most important facts and questions to be considered around private investing.

Episode Highlights

• (2:05) Defining the public market vs private market
• (3:22) "In the short term, the stock market can be a voting machine, but in the long term it's a weighing machine." -Benjamin Graham
• (4:14) Accessing outsized returns in private markets
• (5:32) How the biggest and best venture capital and private equity funds are similar to the best college football teams
• (8:26) What are the different types of private investments?
• (9:22) Questions to answer before getting into private investments
• (10:33) What are the risks to look out for? Liquidity, access, and lack of regulation
• (14:35) When are these investments appropriate?
• (16:21) Private investments towards the end of your athletic career
• (17:48) What we're covering over the next few weeks

More info at pgaplayerspodcast.com

Though tax planning is a year round process, the culmination of tax planning each year is tax filing. Most people are familiar with filing their taxes by April 15th, but what are you doing throughout the year to make sure that you are being as tax-efficient as possible?

This week we discuss the different tax documents you will be receiving and what you and your tax team will need to make sure all is accounted for. We go over some of the commonly overlooked items, tax deductions specific to professional golfers, and clarify some of the myths on what you can and can not deduct.

Episode Highlights
1:30 – What you will get from the Tour
2:00 – Tax documents you need
3:00 – Avoid amending your taxes: often overlooked tax documents
3:45 – Foreign tax documents
5:12 – Ways to reduce what you pay in taxes
7:15 – “Tax efficiency is going to be such a good way for you to maximize the money in your pocket now”
8:30 – What is deductible and what is not deductible

The single most important driver of your Net Worth is your physical ability to play golf. If you are hurt or sick and cannot play for an extended period, this has significant impact on your earnings. Not only does it impact your on-course earnings, but it can affect your endorsement deals as well. So why is disability insurance one of the most overlooked parts of players’ financial structures?

The Tour has a disability policy for players with certain exempt status. It is meant to help if you get hurt/sick, but not cover everything. It is important to know what you get as a benefit and when you can receive it if you were to be eligible. Chances are what the Tour supplies, (PGA or Korn Ferry) is not going to be enough to cover what you need. In this podcast we will discuss the unique disability needs of professional golfers and what you can do about it.

Episode Highlights

• 2:00 – “If you get hurt or sick…what are you going to do?”
• 3:22 – Coverage on the PGA Tour
• 4:20 – When would I start getting the benefit?
• 6:12 – Coverage on the Korn Ferry Tour
• 7:15 – Protecting your wealth and future wealth
• 8:03 – “This is one of the biggest gaps I see”
• 8:57 – Top players coming out of college
• 11:20 – Rely on your team to determine the right amount and right type
• 13:00 – Career Ending Injury
• 13:30 – Anthony Kim example 

Waste Management Open week is unlike any other on tour. It brings with it all sorts of craziness: sometimes good sometimes bad. This is a good reminder that sometimes things go wrong off the golf course and can potentially have a major impact on your finances if not protected correctly.

As an athlete you are a public figure and for all the good that brings, it can also be a target on your back. From minor car accidents, someone getting hurt on your property, to dog bites and parties, if someone sees an opportunity to sue, they will. Make sure you understand how to protect yourself from unforeseen liabilities and keep your personal assets and business assets separate so that you maintain proper protection.