GB Overcoming Earning Complexity: Securing High Value Finance for Celebrities, Creators and Elite Sports People (2024)

During the month of December, the average household spends around 63% more than usual due to extra expenses relating to the festive season, such as groceries, gifts, and celebrations. As we shop for Christmas presents for our loved ones, branding can have a huge influence on the products that we buy. In fact, 71% of consumers say it’s important that they recognise a brand before making a purchase.

More than 800 brands in the UK bear the coveted royal warrant on their packaging, these five-year endorsements signify that the brands regularly supply the royal household, and include names such as Fortnum & Mason, Waitrose, Cartier, Bentley, Clarins, Heinz, and Twinings. A royal warrant is a sign of excellence and can significantly boost a brand’s reputation and sales.

But it’s not just the royal family who endorse products of course. It’s estimated that 25-30% of advertising in western countries uses celebrities to influence consumer buying decisions. Celebrity endorsements are a powerful branding tool which help attract attention, drive visibility, and instil trust and credibility amongst buyers. Recent celebrity endorsement deals include SKIMS, the American shapewear and clothing brand co-founded and fronted by Kim Kardashian, Rihanna’s partnership with Louis Vuitton for their new leather bag collection, Timothy Chalamet as the new face of best-selling fragrance Bleu de Chanel and Austin Butler as ambassador for rival fragrance MYSLF by Yves Saint Laurent.

And who could forget the iconic partnership between Nike and Michael Jordan, considered one of the most notable and successful celebrity endorsements of all time. One of the most lucrative sports sponsorships in history, Jordan reportedly earned over $1.3 billion from Nike, revolutionising sneaker culture and redefining the landscape for athlete endorsements in the process. Famed for defying the NBA’s shoe colour standards of being 51% white, Nike Air Jordans remain one of the best-selling shoes to date. There was even a film made about the partnership in 2023, aptly named ‘Air’.

But it doesn’t just stop at sponsorships and endorsements. Many celebrities now choose to start their own product ranges and even business empires, which allows them better control when it comes to branding, finances and decision making. Celebrities with successful businesses include Victoria Beckham with her self-named fashion label and beauty line, Dr Dre with audio brand Beats, Scarlett Johansson with skincare range The Outset, and Jessica Ennis-Hill with online health platform Jennis.

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Why do so many celebrities choose to diversify their income?

Celebrity income structures are unusual because many work on a project-by-project basis. Once a movie, TV show, or album is completed, their income typically stops until the next project is secured. In a highly competitive market, work is never a surety and celebrities can go for months and sometimes even years without work, and therefore without income. But maintaining the lifestyle they’ve become accustomed to can be expensive, especially if they have luxury homes or cars to run, or families to provide for.

Endorsements or other business ventures provide a steady stream of income, diversifying celebrity earnings and reducing reliance on their main career. Many endorsement or sponsorship contracts are long-term, providing consistent income over several years, enhancing the celebrity’s personal brand reputation and driving publicity at the same time.

As sportspersons and celebrities age, their marketability can decline, leading to fewer job opportunities and lower income. Take George Clooney for example; whilst he’s still making some movies, his long-established deal with Nespresso has been running for over ten years and is said to be worth in the region of $40m, providing the actor with financial stability between appearances on the silver screen.

Because celebrity incomes are so complex in their structure, it can be difficult for them to arrange financing such as mortgages or loans, via the typical routes.

So, where can celebrities look for financing deals?

Using a specialist broker often makes THE difference as they have access to the whole market and tailored solutions not available on the high street that are often hard to uncover through individual means. Plus, critically often have experience overcoming some of the aforementioned challenges, which can also help accelerate the overall process.

Enness Global can help arrange million plus financing for celebrities, creators and elite sports people from a variety of backgrounds across the globe, through its extensive network of international private banks and lenders. Since its inception in 2007 Enness has understood that celebrities often have unusual or multiple income streams. Helping many such individuals over the years, guiding them through the application process with care, and discretion. Always focused on making sure that their overall wealth, assets, and financial circumstances are represented in the most favourable light.

Islay Robinson, CEO of Enness Global remarked, ‘At Enness we are renowned for specialising in helping high net worth individuals overcome the complexity that often presents mainstream lenders moving forward. The many celebrities, creators, artists, elite sportspeople and VIPs we have helped over the years proves our strength and track record in this area. As earning opportunities multiply, we are here to help these hyper-talented individuals secure the best high value finance terms for their circumstances’.

Whether you’re purchasing high-value property, refinancing, or investing in luxury real estate, Enness is extremely well placed to deal with a wide range of non-typical lending scenarios including high-value domestic and international mortgages.

The views and opinions expressed in this piece are those of the author and do not constitute advice or a recommendation. They do not necessarily reflect the official policy or position of Enness and are not intended to indicate any market or industry viewpoints, or those of other industry professionals
GB Overcoming Earning Complexity: Securing High Value Finance for Celebrities, Creators and Elite Sports People (2024)
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