Pete’s Corner 1

Welcome to the first of what I hope is many reflections and connections around my interactions with professional athletes. 

In my experience, pro athletes have many of the same opportunities and challenges as young entrepreneurs and executives, with additional constant risk to their careers, reputations and safety.  So, for the past 20 years, my team and I have devoted our resources to helping these Next Generation Leaders protect and grow their wealth through the arc of their careers and beyond.

For the first Pete’s Corner, my partner, Jordan Waxman, asked to interview me, and here is a transcript of that talk.

Pete, tell me about your first experience with pro sports.

Well, like you I was born in Toronto.  My family arrived in 1955 from Ireland, and we grew up on a cul-de-sac in Weston, Ontario playing street hockey – like the scene you see in Wayne’s World where they move the net every time a car comes by.  On my street lived a boy named Adam Oates, who played in the NHL and is a Hall of Famer.

As I got older, my passion for hockey grew from the road to the municipal rinks, and I remember listening to the Maple Leafs on the radio from my bunk bed.  I knew the sport would become an integral part of my life.

Like every other Canadian boy I knew, I dreamt of playing in the NHL like my idol, Bobby Hull, who played for the Chicago Blackhawks.  In 1969, my dad’s friend Lou Angotti, arranged to get my brother and me into the team’s locker room and I met Bobby and the team.  I had memorized their names and stats, and I became a lifelong fan of the Hawks, unlike all my neighbors who were Leafs fans. 

Most of the players in those days were Canadian, and those memories and my heritage were linked together, inspiring me to play on.

My hockey career developed well in Toronto, and at 13, I was invited to The Competitive Hockey Clinic in Ottawa, run by ex-NHL linesman Wayne Bonney.  It was a tremendous hockey school that developed many young men into superstars of the NHL.  From 16 to 21, I worked with my buddy and future hall-of-famer Steve Yzerman for the Clinic, and the training and education prepared me for my future in hockey.

The day I walked on as a Freshman at the University of Western Ontario was one of the proudest of my life, considering half the team had played in the NHL! 

I played varsity hockey again when I pursued my MBA at Windsor University, but my pro dreams were dashed by a broken leg, and I was never Speedy Petey again!  However, a good education allowed me to pivot to investment and private banking, and now this passion has come full circle, and I advise many pro athletes and consider them great friends.

How did hockey prepare you for the career in currency trading and banking?

Currency trading on Bay Street took place on giant trading floors with everyone in different roles playing on the same team.  It was loud and fast-paced, and you had to build good relationships within the bank and with clients, to get things done.  Although trading is by its nature transactional, I became the go-to call for many large institutions, because of my relationship-driven approach.

Another advantage of my job was traveling the world, visiting sovereign wealth funds and global banks, and getting to live in several European cities, including London and Luxembourg.  People in Toronto tended to think and live locally, which is fine for some, but for global investors, there are many more interesting opportunities elsewhere.

I loved the 15 years I worked advising, transacting with, and serving some of the most successful global macro hedge funds, but wanted to focus full time on relationships.  At the same time, my best friend, who had played in the NHL before going to law school and then becoming a prominent agent, convinced me that the level of integrity in the wealth management space, especially when it regarded athletes, was lacking and needed someone like me.

That is when I planted roots in the Midwest and started in private wealth management.  In 2003, I sought help with a cross-border issue facing one of those athletes and was introduced to you.  The rest is history!

How has the business changed since then?

The private client business has moved from a transactional “brokerage” relationship to a relationship “discretionary” one, and for the past 12 years as part of Hightower, we are full fiduciaries, acting with an undivided interest for our clients.

In currency trading, if you transact, the firm gets paid.  When I was at Merrill Lynch, the firm was paid for advice, but also to place certain investments.  Now, the only source of revenues is advising clients.  We have eliminated conflicts of interest like having funds pay to distribute their products.

In the case of pro athletes, thanks to a recent Supreme Court ruling, their careers begin in college, with Name, Image and Likeness (NIL) contracts, and the ability to potentially circumvent rookie contracts and go right to free agency.  Endorsement deals, guaranteed contracts and intellectual property rights sales are larger and NFT’s and social media are new potential sources of revenues. 

Finally, the number of frauds perpetrated on athletes and entertainers has continued.  I would love to report that the clients are wiser as a result, but clearly swindlers and bad actors are still taking advantage of trusting clients.  We are updating the book I co-wrote, 13 Ways Pro Athletes Eff the Golden Goose.  More on that in another Pete’s Corner.

Thanks, Pete.  A great trip down memory lane.

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