Pro Ice’s goal-oriented practice

National Bank Financial still wants to build up its non-Quebec asset base but it won’t be doing so with professional hockey players.

At least, not the ones working with Wellington West Pro Ice Management.

Read: Advice for hockey players

Grant Skinner, president and CEO of the Winnipeg-based wealth management firm, has bought out National Bank’s 50% share in his company, less than a year after the bank acquired it. (National Bank purchased the 83% of Wellington West Holdings Inc. that it didn’t already own last May for $333 million. Wellington West bought into Pro Ice in 2001.)

Read: Inside the Wellington West‎ deal

“This is the first time in 15 years that my family has owned 100% of my baby,” says Skinner.

The purchase price of the deal has not been disclosed.

The newly-minted Pro Ice Management Group has carved out a unique niche providing “personal CFO” services to nearly 50 players in the National Hockey League and tax services to more than 100 current and retired players. The CFO services are wide ranging and include tax planning, monitoring banking and investment accounts and providing quarterly reports of all money-related activities.

Read: Sid the Kid holds $20 million DI policy

Skinner, who has players throughout the NHL, says considering 80% of the league’s franchises are based in the U.S.—where National Bank isn’t registered—the bank discovered there wasn’t much of an upside in owning his firm.

Personal CFO

Pro Ice’s services cover 10 distinct areas. Here’s a quick look at each one

• Tax compliance and planning: includes preparing annual tax filings within Canada and the U.S.; reviewing the status of tax returns after filing; and representing the player in the event of disputes with various tax authorities.
• Financial planning: includes determination of a financial plan and preparation of an investment policy statement; coordination of relationships with private money managers in the U.S. and Canada; and preparing detailed annual cash flow budgets, including monthly monitoring and reporting.
• Quarterly reporting: includes summaries of valuation and performance of assets under administration; review of net capital transactions; asset allocation; and market commentary.
• Banking: includes monitoring of banking and investment accounts; transferring funds; paying bills; coordinating foreign exchange contracts to hedge against currency movements; credit card maintenance; tracking and coordinating payroll with the hockey club; and arranging lines of credit to facilitate vehicle purchases or business investments.
• Will and estate planning: includes documenting the plans and coordinating with legal counsel; preparing pre-nuptial agreements; ongoing reviews when significant changes occur in the client’s life, such as marriage, divorce or children.
• Life and disability insurance planning: includes identifying the most competitive and suitable coverage in light of long-term financial plans; coordinating with insurance companies.
• Accounting services: includes maintaining a sub-ledger of cost basis for all investments and detailed reporting of sports-related expenses; preparing financial statements, trust returns and corporate tax filings; preparing financial disclosure required in the event of a divorce or with green card applications.
• Business valuations: includes evaluating potential private businesses and endorsement opportunities.
• Home purchases and financing: includes coordination of the entire process with real estate agents, mortgage brokers, bankers, appraisers and lawyers, as well as mail redirection.
• Agent support services: includes providing detailed cash flow and tax analysis of contract options.

Luc Paiement, Montreal-based executive vice-president of wealth management with National Bank and co-CEO of National Bank Financial, says in order for Skinner to be able to present himself as truly independent, it would best if National Bank didn’t have an ownership stake.

“If he was within the bank, that would be difficult, he could be perceived as having a conflict of interest,” he says. “We decided he should stay completely independent of National Bank and we would stay as one supplier for him. We have sold all our shares to Grant Skinner but we’re still in a good business with him.”

Paiement says National Bank respects the business model that was sold to Pro Ice’s clients and realizes that having the firm under the bank’s umbrella wouldn’t be in the players’ best interests.

“Pro Ice is an independent firm. (Skinner) is making sure he’s doing business with great institutions. He may decide he would like to work sometimes with RBC, sometimes with other firms. We will be one of those institutions.”

Skinner says the return of the NHL to Winnipeg this hockey season has had a tremendous impact on his business. First and foremost, he doesn’t spend nearly as much time in airports, because most of his clients will be visiting Winnipeg to play the Jets at some point this season.

“I took an Islanders player to 529 Wellington (an upscale steak house in Winnipeg) last week and I’m meeting with some Colorado Avalanche players next week for breakfast,” he says.

Perhaps not surprisingly, Grant Skinner says Pro Ice has recently added a couple of Jets players to his stable of tax clients.

“This is the time of year agents start to organize their players taxes. I’m likely to get more calls in the next two to three weeks. Having the team here and players working in our city creates the need to deal with tax issues,” he says.

An accountant by trade, Skinner got his start with professional athletes by doing tax returns for members of the old Winnipeg Jets in the 1980s. Eventually, their financial needs became more complex, so he expanded his offering and launched Pro Ice in 1996 with three minority partners.

After the original Jets moved to Phoenix, Skinner was forced to rack up countless air miles as he crisscrossed North America to meet with prospects and clients such as Jonathan Toews, captain of the Chicago Blackhawks, and his teammate, Patrick Sharp. Skinner also counts former Toronto Maple Leafs captain, Doug Gilmour, and former Calgary Flames sniper, Valeri Bure, as clients.

In fact, Skinner says it’s after players retire that Pro Ice’s relationship with them typically ratchets up to the next level.

He is quick to differentiate what he does from the duties of a player agent. The latter’s responsibilities are largely taken up with negotiating contracts. Once they’ve hung up their skates, however, unless they’re going into coaching or management, there are no more contracts to be signed. There are, however, assets that need to be put to work. Tyler Skinner, vice-president at Pro Ice and son of the founder, has been charged with driving much of the company’s future growth. He says the $100 million in AUA that it has today could easily grow by 50% over the next couple of years.

He agrees that the return of the Jets could be a boon to the business as getting in front of potential clients is far easier when they’re constantly coming into town.

“You don’t just give them a call, you want to see them face to face to try to make the pitch. I’ve been out with potential new clients about a dozen times since the Jets came back,” he says.

With young players in his sights, Tyler Skinner says the growth will likely start out slowly but take off as the players get older, sign increasingly rich contracts and require more sophisticated services.

The most lucrative entry-level contract in the NHL is typically three years long with about $1 million in annual salary. But after buying a house, a car, paying agency fees, taxes and putting money in escrow, there isn’t much left to invest, he says.

“We’re not generating much revenue off them in the first three years, only after that can we recognize on some asset value,” he says. “It’s not so much about the assets under administration now. We know the money is coming, you have to be patient.”