Larry Sanders: Why I Walked Away From the NBA

[Parataxis]

As long as he manages his money properly - he's set to be rich for the rest of his life. If he invests 80% of his after-tax buyout pay at 6-7% interest per year he'll earn anywhere from 550-800k per year so he's essentially set. As we know - most NBA players do NOT manage their money properly - so if he doesn't, then yeah, he's f*cked.

Okay, I'll bite. where you invest to get 6-7% per year?

Over the past 3 years, I've been averaging about 11% on my TFSA. My dad, who is retired, is getting about 8% on his (much more conservatively managed) RRSPs.

[AkelaLoneWolf]

Lol - Agree. My fiance works in the government and its painful to hear about. RealRapsFan actually articulated what I was trying to say better than I did, and was correct on both his paragraphs. To be clear, I'm not diminishing the importance of mental illness awareness. It's good that he's speaking out as it's an important societal issue. I just don't like him using it as an excuse, it weakens support for the cause. Like another poster stated, if you've never experienced mental illness, you have no idea how debilitating it can be. Mental health reasons to take time away from work is perfectly valid.

What I forgot to mention in my previous post is the salary cap. Correct me if I'm wrong, but regardless of the buyout, his full contract stays on the books for salary cap considerations. That's 11mm a year the team can't spend to improve. Not true. The amount of the buyout stays in but the rest of the contract is off the books.

He can pre-script all the interviews he wants to ensure he frames the public's perception of him in a positive light. But that fact remains, he screwed his teammates. He screwed the fans. And he stole from the owner. If he didn't want to play anymore he could have simply retired. Actions are more important than words. You don't know what he said was pre-scripted or not, so I think your attitude here is very prejudicial. I'm not sure how he screwed the teammates and the fans. Maybe you can explain that one. We can agree to disagree on the stealing part. Most likely the contract was insured, so the owner probably doesn't lose one cent.
Additionally you seem to imply that he's taking some sort of principled start. He's not. He's walking away to get the help that he thinks that he needs.

[agentzero2010]

I learned about this in a psych class taught by a prof that worked with many athletes and its a serious matter and people should not leap to the conclusion that he's a lazy person or that he didn't want to work after he got paid.

[Courtside]

I wish I could remember who it was -- my instinct tells me it was Lowry, but I can't back that up -- but some player in Toronto recently brought up the fact that people back home didn't have passports. And whoever it was, he meant that it was a blessing.

Damon has mentioned it in interviews about his Toronto days and what returning to Portland was like. More recently, Durant has dropped similar tidbits about returning to the DC area, about how many people want a piece of him - or something to that effect.

I'm not suggesting players come here to completely escape taking care of their families, but I do think some players wish they never let their entourage get out of control, or let so many "relatives" come out of the closet to ask them for things when the player didn't exist to that person before making the jump to the NBA. It's the main reason these players go broke once their salary stops paying out - they weren't able to establish limits or just say no.

Ross and Amir are proof that you can accumulate expenses here if you're not careful - together they pay around $100K a month in child support - but that can happen anywhere, rather than follow you from where you came.

[OAKLEY_2]

Sounds like he wants to smoke weed more than he wants to play basketball. To each his own.

Weed for an anxiety disorder. Yeah, that will end well. Dr. Nick Riviera treatment program.

I know you think you are adding a common sense perspective to Sanders situation or any like person you have never met but in this instance you haven't got a clue what you are talking about. It isn't "weed" that is the issue it is mood disorders and anxiety. Go learn something about it and then come back and post. If you want to post about how you know some weed losers that like to get trashed start a separate thread on that. I promise I'll comment and accept your expertise.

[tecumseh18]

As long as he manages his money properly - he's set to be rich for the rest of his life. If he invests 80% of his after-tax buyout pay at 6-7% interest per year he'll earn anywhere from 550-800k per year so he's essentially set. As we know - most NBA players do NOT manage their money properly - so if he doesn't, then yeah, he's f*cked.

Okay, I'll bite. where you invest to get 6-7% per year?

Over the past 3 years, I've been averaging about 11% on my TFSA. My dad, who is retired, is getting about 8% on his (much more conservatively managed) RRSPs.

Oh yes, one can get 11% over the medium term in a rising stock market. But unless I'm wrong, JF seemed to be implying he can get 6-7% on a low risk basis over the long run. I was wondering if he had a particular strategy for obtaining that.

[Fairview4Life]

Okay, I'll bite. where you invest to get 6-7% per year?

Over the past 3 years, I've been averaging about 11% on my TFSA. My dad, who is retired, is getting about 8% on his (much more conservatively managed) RRSPs.

Oh yes, one can get 11% over the medium term in a rising stock market. But unless I'm wrong, JF seemed to be implying he can get 6-7% on a low risk basis over the long run. I was wondering if he had a particular strategy for obtaining that.

The only strategy that works.

[Throwback24]

This video has me teary eyed. I'm honestly moved wow.



I hope one day that I can muster the courage to follow my heart and quit this unfulfilled road I continue to march on.

That's true courage, walking away from something because you know it's the right thing to do for your mental health. Some would call this "trusting the soup." There's an apparent equilibrium in the world and while listening to may cause suffering in the now, it'll eventually lead to bigger and bigger things provided you use the time productively.

Larry Sanders is my favorite player in the NBA and I sincerely hope him all the best in life.

I'm overcome with emotion for some reason, wow.

[Stolen Identity]

Doesn't this remind you of Ricky Williams? Soon, he'll be up here playing for the Mississauga Power.

Would give me a reason to check the team out more often.

[GrapeApe]

+1

Toronto is the perfect destination for Sanders, i wouldnt be surprised if Masai tries reaching out to him in the offseason. No better GM to give a pep talk to a player then Masai.

Wouldn't Denver be better?

[GrapeApe]

Oh yes, one can get 11% over the medium term in a rising stock market. But unless I'm wrong, JF seemed to be implying he can get 6-7% on a low risk basis over the long run. I was wondering if he had a particular strategy for obtaining that.

6-7% is typical stock return.

[tecumseh18]

Oh yes, one can get 11% over the medium term in a rising stock market. But unless I'm wrong, JF seemed to be implying he can get 6-7% on a low risk basis over the long run. I was wondering if he had a particular strategy for obtaining that.

6-7% is typical stock return.

Past performance is no indication of future results. Yes, 6-7% is the Warren Buffet approved long-run rate of return on the stock market, over the last 50-60 years. But we live in a very dynamic world. Does the investment strategy of the 1980's apply in a world where manufacturing has almost completely moved offshore? Are you saying Canadian stocks are a good buy now, when the possibly over-extended banking sector occupies such a major part of the overall index, interest rates are continuing to drop, energy stocks are in a death spiral, and the C$ may drop to US$ 0.69 by this fall (according to a prominent analyst today).

Anyway, sorry for the thread derail. I was just trying to get some insight into JF's thinking.

[JackedFinancier]

Okay, I'll bite. where you invest to get 6-7% per year?

Over the past 3 years, I've been averaging about 11% on my TFSA. My dad, who is retired, is getting about 8% on his (much more conservatively managed) RRSPs.

Oh yes, one can get 11% over the medium term in a rising stock market. But unless I'm wrong, JF seemed to be implying he can get 6-7% on a low risk basis over the long run. I was wondering if he had a particular strategy for obtaining that.

No - I don't have a particular strategy but 6-7% is a pretty fair, conservative assumption based on investing into a balanced portfolio of Canadian & US equities with a mix of growth stocks and dividend stocks. It's very doable but at the same time it's obviously no guarantee. Real Estate could also get you that type of return, factoring in rental income from the invested properties. I have both money in stocks and I own a condo - both have unique advantages however I'll go with Real Estate. You can use the asset to your advantage by living there when you so desire and you can make income from the rental of the property. Stocks can definitely get you that return, but they provide no additional value for you. However they are more liquid so that helps.

Hopefully Larry is thinking about this. I don't care if he made this decision personally, he still has to be thinking about this decision so he can continue to pursue his passion - be it art, skateboarding, weed or whatever.

[416]

Oh yes, one can get 11% over the medium term in a rising stock market. But unless I'm wrong, JF seemed to be implying he can get 6-7% on a low risk basis over the long run. I was wondering if he had a particular strategy for obtaining that.

6-7% is typical stock return.

Past performance is no indication of future results. Yes, 6-7% is the Warren Buffet approved long-run rate of return on the stock market, over the last 50-60 years. But we live in a very dynamic world. Does the investment strategy of the 1980's apply in a world where manufacturing has almost completely moved offshore? Are you saying Canadian stocks are a good buy now, when the possibly over-extended banking sector occupies such a major part of the overall index, interest rates are continuing to drop, energy stocks are in a death spiral, and the C$ may drop to US$ 0.69 by this fall (according to a prominent analyst today).

Anyway, sorry for the thread derail. I was just trying to get some insight into JF's thinking.

check this out: http://investmentsillustrated.com/clien ... Cdn_en.swf

6-7% long run return is definitely obtainable, with key emphasis on long-run. Since 1934, Canadian and US markets have returned ~10%/year (but it has violent short run swings). To capture the growth of markets, individual investors can purchase index funds and exchange traded funds, that replicate the returns of any benchmark market.

Yes we live in a dynamic world,this is why you diversify your portfolio to mitigate risk and increase your exposure. This means not only investing in Canadian Equities but broadening it to US & Int'l equities (as well as bonds) to grow and protect your investment over time. This also ensures that you are exposed to the growth of global markets and protected against some currency exchange risk, which should address your two main concerns.

Anyways, I came here for basketball stop derailing!

[bananaman]

Some of the responses in this thread are pretty insensitive to how crippling anxiety and depression can be, regardless of how great your paycheck is. Sure, he's lucky to have the ability to be an NBA player, but often people don't look at players as individuals who have their own issues outside of basketball. The guy needed to sort that stuff out and get help, even if it's idiotic financially.

[AirCanadaMouse]

This dude actually let his team buy him out for pennies on the dollar. I get his pov, but he'll regret it in 10 years.

No,... he won't.

"Okay, fine, I don't have $50 million or whatever it was. Let's say I have $10 million in the bank — the difference in lifestyle is miniscule. The only difference between having $10 million and $50 million is an astounding $40 million. Of course I would like to have that money."

- Dave Chappelle. 10 years later.

[MEDIC]

I'm betting he'll be back after he starts running out of money.......but he will sell it in a manner suggesting he "is ready" to return to the NBA.

Would be interesting to see what choice he would have made had his contract been fully voided. Will also be interesting to find out what he does with his time away from the NBA. Will he return to school? Will he contribute in some way to help those less fortunate with mental health issues?

Are there any stories of someone who left the league & did something productive with their lives? The last guy that I recall sat around & smoked pot every day until he ended up in jail (Keon Clark).

I guess we'll see....

Michael Jordan quit basketball in his prime to go play baseball.

True......I suspect this is a much different situation...

[MEDIC]

Some of the responses in this thread are pretty insensitive to how crippling anxiety and depression can be, regardless of how great your paycheck is. Sure, he's lucky to have the ability to be an NBA player, but often people don't look at players as individuals who have their own issues outside of basketball. The guy needed to sort that stuff out and get help, even if it's idiotic financially.

I don't think people have issues with him walking away. It's the buyout some have issues with. He just started a long term contract & basically forced the team to give him a boat load of money for doing nothing. If you had no interest in continuing the career, then why negotiate the contract? It's not like the Keon Clark situation where he simply walked away from the game.

Sanders doesn't have the most innocent history either..........doesn't help his reputation any.....

[Tofubeque]

Some of the responses in this thread are pretty insensitive to how crippling anxiety and depression can be, regardless of how great your paycheck is. Sure, he's lucky to have the ability to be an NBA player, but often people don't look at players as individuals who have their own issues outside of basketball. The guy needed to sort that stuff out and get help, even if it's idiotic financially.

I don't think people have issues with him walking away. It's the buyout some have issues with. He just started a long term contract & basically forced the team to give him a boat load of money for doing nothing. If you had no interest in continuing the career, then why negotiate the contract? It's not like the Keon Clark situation where he simply walked away from the game.

Sanders doesn't have the most innocent history either..........doesn't help his reputation any.....

What history? That he got into a fight once? There's zero basis to go on comparing him to Keon Clark, other than both being tall black dudes who smoke weed.

I'm not too compelled to feel bad for the Pro Sports Team owners either, since a 10 million buyout will be easily forgotten next to what they sell the team for. Aside from the obvious moral reasons to not publicly battle to void the contract of a mentally ill person, they also save on having a sulking player count against their cap the next four years, unlike every other team with post-contact-year deadweight.

[UneducatedFan86]

I've luckily never really had to deal with any type of mental disorders in my life (other than some anxiety when I have an exam the next day and the Raptors are on); but I've known people who have/do, and I can say without a doubt that the toll it takes on you can be overwhelming for many. Not just the person themselves but the people around them.

I respect his choice to put his family and himself above the job. That's what the NBA is to him: a job. Nothing more. I think people get this romanticized idea of being an athlete, musician, actor; and think that it's all glitz and glamor. A lot of these people worked their butts off to get to were they are, and a lot of them lived very poorly to make their dreams become a reality. Then once you've made it, there is a ton of pressure to keep that success. It's no wonder so many of them turn to drugs and partying.

I'm hope that he can explore his true self now that he's going to be away from this job, and he can find something that brings him peace of mind and happiness. Like most have said, if he's smart with his money, he's set for life. He actually seems like he has a good head on his shoulders and hopefully his family will help him through this. Not just try to leech off him.

Plus, if he ever finds the motivation to play basketball again, I'm sure there are more than a few teams that would take a flier on him. He's definitely got all the talent in the world. Heck, I'd still love to see him in a Raptors uniform.