Financial Security of Professional Ice Hockey Players
Engren, Atte Tapani (2023)
2023
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023103128278
https://urn.fi/URN:NBN:fi:amk-2023103128278
Tiivistelmä
This thesis focused on social security, with a particular focus on the monetary aspects, within the unique context of professional ice hockey players in Finland. Through quantitative analysis and enlightening interviews with industry experts, the thesis presented valuable insights into the financial dimensions of this unique arrangement.
The primary feature of this system was the ability for ice hockey players to contribute a portion of their income to a fund before taxation, offering them immediate tax advantages. The appeal of these tax benefits, combined with the prospect of long-term wealth accumulation, is a significant driver for athletes to engage with the fund. This financial security provides a safety net for athletes transitioning from their relatively brief, physically demanding careers.
Challenges arise from the inflexibility of the system, particularly regarding the withdrawal period. Opportunities for improvement lie in the introduction of a more flexible withdrawal mechanism to accommodate individual needs and financial situations.
A comparative analysis was conducted, weighing the existing system against a hypothetical scenario where ice hockey is treated as a regular profession under a traditional social security system. The results indicate that the conventional system may offer better earnings-related benefits, resulting in a higher net income during retirement. However, it is crucial to recognize the unique challenges faced by professional athletes, including shorter careers, injuries, and the need to re-enter the workforce after retirement, which may not be adequately addressed by standard social security systems.
Conversations with industry experts underscore the importance of recognizing athletes in team sports as individuals who could greatly benefit from a comprehensive earnings-related social security system. The potential for combining education with athletic careers has also emerged as an important factor in helping athletes’ transition effectively after retirement.
This thesis research offered a comprehensive understanding of the state of social security for ice hockey players in Finland, emphasizing the uniqueness of the special arrangement, as well as the need for flexibility. It suggests the potential for a hybrid system that combines the strengths of both approaches to better serve athletes in their post-athletic careers. Ultimately, this research aims to humanize the system, suggesting a hybrid model.
The primary feature of this system was the ability for ice hockey players to contribute a portion of their income to a fund before taxation, offering them immediate tax advantages. The appeal of these tax benefits, combined with the prospect of long-term wealth accumulation, is a significant driver for athletes to engage with the fund. This financial security provides a safety net for athletes transitioning from their relatively brief, physically demanding careers.
Challenges arise from the inflexibility of the system, particularly regarding the withdrawal period. Opportunities for improvement lie in the introduction of a more flexible withdrawal mechanism to accommodate individual needs and financial situations.
A comparative analysis was conducted, weighing the existing system against a hypothetical scenario where ice hockey is treated as a regular profession under a traditional social security system. The results indicate that the conventional system may offer better earnings-related benefits, resulting in a higher net income during retirement. However, it is crucial to recognize the unique challenges faced by professional athletes, including shorter careers, injuries, and the need to re-enter the workforce after retirement, which may not be adequately addressed by standard social security systems.
Conversations with industry experts underscore the importance of recognizing athletes in team sports as individuals who could greatly benefit from a comprehensive earnings-related social security system. The potential for combining education with athletic careers has also emerged as an important factor in helping athletes’ transition effectively after retirement.
This thesis research offered a comprehensive understanding of the state of social security for ice hockey players in Finland, emphasizing the uniqueness of the special arrangement, as well as the need for flexibility. It suggests the potential for a hybrid system that combines the strengths of both approaches to better serve athletes in their post-athletic careers. Ultimately, this research aims to humanize the system, suggesting a hybrid model.