Athletes and entertainers face unique wealth management opportunities, considerations and challenges. The athletes and entertainers we interviewed shared their personal stories and perspectives to highlight the need for more financial education in the sports and entertainment world. We thank them for being strong advocates of financial literacy.
Chamillionaire’s advice
Chamillionaire’s advice
“Understand the power of spending your money the right way. Cars and jewelry depreciate in value, but you can also spend money on investments that make money. My wealth allows me to give back and help other people.”
Basketball or rap
Chamillionaire (“Cham”), born Hakeem Seriki, was raised in Houston, shuttling back and forth between his divorced parents. He had little awareness of money, except that his family didn’t have a lot of it. Friendships opened his eyes to what life was like for some other children. “I didn’t know what an allowance was. That was surprising to me.” In Cham’s community, the path to success was limited to basketball or rap, “and I wasn’t tall enough to play basketball.”
First-time millionaire
Cham always had a way with words. In high school, he started rapping and performing on the Houston hip-hop circuit under the moniker Chamillionaire. The name represents his chameleon-like ability to adjust and prosper in different environments through consuming information and fostering relationships. Two popular independent albums led to a deal with Universal Records in 2005. A generous advance from the music contract made Cham a bona fide multimillionaire.
He bought his mother a home and a new car. At first, he found it difficult to spend money on himself. Then he purchased a car with cash. “It didn’t make a dent in my bank account.” In the entertainment world, the star is expected to spend. “You’re the breadwinner for family and friends and presumed to live a certain lifestyle.” He bought more expensive cars and jewelry, material symbols of success to his audience. “I remember buying a $150,000 chain necklace. Everyone was staring at it. In the moment, it felt great, but I had an unrealistic expectation of how money works. Taxes are a reality that I wasn’t thinking about. I’ve wasted a lot of money.”
He bought more expensive cars and jewelry, material symbols of success to his audience. … In the moment, it felt great, but I had an unrealistic expectation of how money works. … I’ve wasted a lot of money.
A number one hit
Cham’s first major solo release, The Sound of Revenge, debuted in the Billboard Top 10®. The single Ridin’ which featured rapper Krayzie Bone topped the Billboard Hot 100® and won a Grammy® Award in 2007 for Best Rap Performance by a Duo or Group. The song describes his numerous run-ins with the police who pulled him over on suspicion of “ridin’ dirty”—driving while in possession of illegal narcotics or firearms. The police never found any contraband. The lyrics, which speak to racial profiling and police brutality, could have been ripped from today’s headlines.
Trust issues
On the heels of his success, Cham was approached by financial advisors. “I had trust issues. No one understood my journey. How I got to where I am. They were just selling themselves and looking for a transaction.” He believes that any professional advisor, from managers to agents to financial advisors, should be interested in educating their clients. “They need to be teaching you. People who made it into my world gave me information before asking for anything. They built trust.”
Start here
Start here
Together, we can help establish the legacy you want to leave.
Browse more profiles
Browse more profiles
Disclosures
This white paper has been prepared by UBS Financial Services Inc. (“UBS”) and is provided for informational and educational purposes only. It should not be construed as a solicitation or an offer for the purchase or sale of any securities, investments, strategies or products that may be mentioned herein, including estate planning strategies, or to participate in any particular strategy. Persons included in this report may or may not be clients of UBS but were not selected for inclusion based on any existing or prospective relationship with UBS. The recipient should not construe the contents of this report as legal, tax, accounting, regulatory or other specialist or technical advice, or services or investment advice, or a personal recommendation. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the matters or developments referred to in this report. This report should not be regarded by recipients as a substitute for the exercise of their own judgment. Any opinions expressed in this report are those of the respective persons and not of UBS or any of its subsidiaries and/or affiliates, and may differ or be contrary to opinions expressed by other business areas or groups of UBS as a result of using different assumptions and criteria. In addition, the information is current as of the date indicated and is subject to change without notice. UBS is under no obligation to update or keep current the information contained herein, and past performance is not necessarily indicative of future results. UBS and its affiliates do not provide legal or tax advice. Clients should consult with their legal and tax advisors regarding their personal circumstances. Neither UBS nor any of its affiliates, or their respective directors, officers, employees or agents accept any liability for any loss or damage arising out of the use of all or any part of this report or reliance upon the information contained herein.
All opinions and views expressed in this paper are those of the author or respective persons and do not represent—and may differ or be contrary to—the views and opinions of UBS or its affiliates. The individuals profiled in this document were selected based on their experiences and professional history. Neither UBS nor any of its employees or affiliates participated in any of the professional trajectories, corporate formations, capital funding, financing, sales, deals, transitions or other events discussed in this paper. This paper is not intended to be and should not be considered or construed to be a testimonial or endorsement of UBS or any UBS product or service. The individuals profiled make no representation regarding any experience or satisfaction with UBS or any UBS product and service. This material does not constitute an endorsement, recommendation or offer for the purchase or sale of any security and should not be relied upon as a basis for investment decisions. UBS, its employees, and/or clients may hold positions in the securities discussed in this paper.
As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business and that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. A small number of our financial advisors are not permitted to offer advisory services to you, and can only work with you directly as UBS broker-dealer representatives. Your financial advisor will let you know if this is the case and, if you desire advisory services, will be happy to refer you to another financial advisor who can help you. Our agreements and disclosures will inform you about whether we and our financial advisors are acting in our capacity as an investment adviser or broker-dealer. For more information, please review the PDF document at ubs.com/relationshipsummary.
GRAMMY is a trademark of National Academy of Recording Arts & Sciences Inc. Billboard and Hot 100 are the trademarks of Billboard IP Holdings, LLC. Other marks are the trademarks of their respective owners.
UBS specifically prohibits the redistribution or reproduction of this brochure in whole or in part without the written permission of UBS, and UBS accepts no liability whatsoever for the actions of third parties in this respect.
©UBS 2022. All rights reserved. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC.