Morgan Stanley’s recent push into offering financial advice to athletes will now include lending them money. To start, the investment firm will make loans of between $55,000-75,000 for six-month terms to NFL draft picks taken in the first three rounds. "Historically a lot of these players when they get to the point of the predraft, or immediately after the draft, have financial needs of getting transitioned into the market of the team they play for," said Drew Hawkins, Managing Dir of Morgan Stanley Wealth Management’s sports and entertainment practice. Loans to athletes, especially incoming rookies, have largely been the purview of agents or high-interest rate lenders. Morgan Stanley’s entry into the field brings a major Wall Street name into the fold. While there are no available stats on where athletes turn to for loans, one figure recently emerged from public documents filed in Redskins WR DeSean Jackson’s lawsuit against his former agent, Drew Rosenhaus, over a loan to the player. Compelled by the court to disclose how many loans he makes to players, Rosenhaus in January court filings wrote he had identified 165 loans to players that contained a clause at issue in the litigation. There were also what he termed “training agreements” for clients related to their training expenses. Morgan Stanley formed its sports advisory practice in November, and has 66 financial advisors focused on the area now. Morgan Stanley is a sponsor of this week’s Sports Lawyers Association conference. A player who wants a loan must sit down with his agent or accountant and with a Morgan Stanley financial planner. They are not required to use the firm for financial planning. Hawkins expects the firm to write 15-20 loans this year.
