Going to the Olympics is an expensive adventure for American athletes. Mandatory Credit: Kyle Terada-USA TODAY Sports PARIS — Being an Olympic athlete in the United States is not only physically demanding, it’s also financially taxing.
According to the U.S. Olympic and Paralympic Committee’s “Passing the Torch” report, a recent report found that 26.5 percent of high-performing American athletes earn less than $15,000 a year.
The remaining 10% earn between $15,000 and $25,000.
“Only 50% of all high-performance athletes who responded reported any sports-related compensation, and only 11.5% of those received sponsorship,” said Han Xiao, a committee co-chair and former member of the national table tennis team. “Most athletes live off a combination of allowances, prize money, support from family or partners, and salaries from other types of work.”
The costs of competing at a world-class level (travel, accommodation, equipment, fees) are also very high: Olympic athletes spend an average of $12,000 per year on related expenses.
The report found that some American Olympic athletes were forced to sleep in their cars or live without adequate food, nutrition or adequate health insurance.
“This Olympic cycle has been worse than any before,” says Brandt Feldman, an agent with American Group Management who represents several Olympians, including water polo player Maggie Steffens and swimmer Paige Madden. The reason, Feldman adds, is the lack of sponsorship opportunities.
“They may be selling a lot of advertising, but that’s not reaching the athletes,” Feldman said. “Athletes live off of these sponsorships, and they’re hungry for deals.”
As a result, the money we spend on survival often ends up going to plastic.
For example, one of Feldman’s former clients had $41,000 in credit card debt and couldn’t afford to pay his fees right away—a debt that not only he had to pay but also his team had to pay.
“I’ve personally heard so many stories of fellow athletes running into credit card debt that I can’t even count,” Xiao said.
There are several reasons why athletes are struggling financially: Olympic committees and sports governing bodies themselves are often struggling financially, corporations are cutting back on athlete sponsorships, and the United States lacks the robust national funding system common in other competitive nations.
Until the system really changes, experts advise current and future Olympians to focus on capturing this one-of-a-kind moment in Paris.
Get high quality representation
Becoming the best athlete in the world requires 100% focus, which means your bandwidth for books is limited. And if your parents are well-meaning and supportive of the business side of things, they may not have the know-how or network to take your career to the next level.
“When you’re looking for sponsorship opportunities and negotiating deals with sponsors and sports federations, make sure you have good representation to look after your interests,” advises Xiao. “Being an athlete and an agent is a full-time job, and it’s really hard to do both really well.”
Develop your brand
You may think that being one of the best athletes in the world is enough to make you money, but that’s not enough. You also need to build your personal brand by maximizing your social media presence.
“I think athletes who don’t like social media are in trouble,” Feldman says. “Even if you’re only good on one platform, like Instagram or TikTok, you need to post as much content as possible.”
Also, include your contact’s email address in your bio so the business can contact you and get a quick response.
Brands often reach out to customers through direct messaging on Instagram or TikTok.
“If there’s no response, it just moves on to the next player,” Feldman said.
Act fast
For a short period of time, the eyes of the world will be on you, but it won’t last long.
“Once the Olympics are over, you’re headed into the first week of college football, NFL exhibition games, baseball pennant races,” Feldman says. “When a player goes out there and wins a medal in Paris, you need someone on your side cheering you on within 72 hours… If you don’t get a deal done in 60 to 90 days, you might have blown a window.”
–Reuters, Field Level Media Special Report
