Don't overlook that a lot of the NBA players are young men trying to keep up with their friends... who arefirst round picks with guaranteed $$.
If you are getting minimum salary and hang out with another rook who is a lotto pick, the minimum salary guy is probably going to be broke at years end.
The NBA lock out worked for the owners because the players had no financial reserves, a majority of them lived month to month just like us poor schmucks.
60% of NBA Players broke 5 years into retirement..
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LakerFanMan
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nate33 wrote:That said, I think any NBA player who signs a multi-million dollar contract is an idiot if he ends up broke. It's not that complicated. If you're a mid first round pick and sign 4-year deal with $7M, I don't see why it's so hard to set aside just $1M. $1M at 7% interest plus a paid-for home is enough to keep food on the table for the rest of your life.
Wow 7% interest, you can get interest that high on a mill? Most i've ever seen on anything over 50K is like 2%. Then again, I havn't really looked into it much.
Any way though, I think you hit the nail on the head with your first post. They really have no skills other then basketball. Add that to the fact that most of them also do not know how to manage money. You'd be surprised how quickly you can spend millions. Many of them gamble, spend on cars, houses, clubs, women, etc...
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10scott10
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I think that might inflated becasue such a large percentage of the NBA gets cut after less than a season.
that number goes up if they include people who played in pre-season games.
but the NBA really needs to teach guys to invest their money. add that into the standard rookie seminar that it holds every year.
that number goes up if they include people who played in pre-season games.
but the NBA really needs to teach guys to invest their money. add that into the standard rookie seminar that it holds every year.
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InsideOut
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LakerFanMan wrote:-= original quote snipped =-
Wow 7% interest, you can get interest that high on a mill? Most i've ever seen on anything over 50K is like 2%. Then again, I havn't really looked into it much.
Or at all for that matter. Seriously, you know even less than the 60% of NBA players that went broke if you have your money sitting at 2%. Sorry for being harsh but you need to get financially educated in a hurry.
I don't care how much the NBA players were making years ago. It was still a lot at that time. If you spend more than you make you go broke. An 8th grader knows that. A lot of lottery winners also blow it all. Winning money doesn
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Rasheeed!!!
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NBA players, just like other celebrities, are just plain stupid when it comes to money. First off, it doesn't matter how much money you make, it's still more than the Average Joe. I'm not sure how much Magic made, but it sure wasn't what today's players are getting and still he has real estate worth $1 billion.
I'm gonna assume that players don't really invest there money, they just spend it on things they can't afford like homes, excessive amount of cars, holidays, and posses.
I'm gonna assume that players don't really invest there money, they just spend it on things they can't afford like homes, excessive amount of cars, holidays, and posses.
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LakerFanMan
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InsideOut wrote:-= original quote snipped =-
Or at all for that matter. Seriously, you know even less than the 60% of NBA players that went broke if you have your money sitting at 2%. Sorry for being harsh but you need to get financially educated in a hurry.
I don't care how much the NBA players were making years ago. It was still a lot at that time. If you spend more than you make you go broke. An 8th grader knows that. A lot of lottery winners also blow it all. Winning money doesn
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Pancho_Pantera
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Not really surprised. A lot of these athletes live life by the moment, and don't really plan their futures. Plus they are materialistic just like everyone else in this country. And this goes back to college education, which most of them don't have. If they had a higher education, they wouldn't be facing these type of problems. I doubt they would be able to maintain the NBA lifestyle but they would not be broke.
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Cevap
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realfung wrote:First, they have a habit of using money like crazy.
Second, they don't have any plan for retirement.
Bingo, hell all you need to do is look at your local university's team and 80% of the players (who have no shot at the NBA) are pissing away a free opportunity for an education by majoring in sports psychology or some worthless degree like that. Add to that that NBA players know they got talent to earn six figures at the young age of 22 and it's no wonder none of them think 25-30 year down the line
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Ming Kong!
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bstein14 wrote:7% isn't even that great of a return.
You can get 5+% return with no risk at all, just putting it into a CD or high yield savings account.
8-10% isn't unrealistic at all.
If you have $10 million making 5% a year that's $500k a year to live on.
A well distributed portfolio can easily give you a 15+% return. Yeah many NBA players now a days have little college experience, and since they'll generally just take the easiest classes to stay in the NCAA program, they wont get all that financial knowledge required to manage an early retirement. Lets face it, $10,000,000 today, wont be the same in 50 years. In 50 years it will probably be the equivalent of $1,000,000 today, and if you have to distribute $10,000,000 between 50 years, it's $200,000, which might be the equivalent to $20,000 in the future, which obviously isn't VERY much. If financed right you live like a rich man forever.
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Point forward
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Remember when Kareem was broke in the mid 1980s? He certainly takes the blame for not overseeing his $$$, but he also had bad management.
On the contrary, the often maligned Wilt Chamberlain had brains. He was clever enough to hire a shrewd lawyer (Sy Goldberg), maintain good connections to powerful businessmen (Jack Kent Cooke) and himself was clever real estate manager. When he died, he was a filthy rich multi millionaire and had this great Bel Air villa despite only playing until age 37. You can say about Wilt what you want, he had the skill to turn 1 dollar into 2 or 3.
On the contrary, the often maligned Wilt Chamberlain had brains. He was clever enough to hire a shrewd lawyer (Sy Goldberg), maintain good connections to powerful businessmen (Jack Kent Cooke) and himself was clever real estate manager. When he died, he was a filthy rich multi millionaire and had this great Bel Air villa despite only playing until age 37. You can say about Wilt what you want, he had the skill to turn 1 dollar into 2 or 3.
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GIVE_WADE_THE_MAX
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holy shnikies this aricle reaks of racism. Holy shnikies. WTF. This article cites Jason Caffey and Scootie Piippen as those that are struggling financial problems. No Shnikies we know Scottie has been broke and weve laughed at him. Oh noes Jason Caffey is broke. OH noeeeeeeeeeessssss
I cant believe the over generalixations of this article
I cant believe the over generalixations of this article
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prophet_of_rage
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maradro wrote:don't know if its been mentioned as i didnt read the whole thread, and i dont know since when this is policy, but after playing 3 years players get a pension from the league which they can collect at age 60 or 65, not sure about that either!
but there is a pension system
You have to be in the league 7 years to get a full pension. But, let's not forget, all these players are employees just like us. The ones who made big money were entrepreneurs and now you have to change a lifestyle. As someone said the financially wise will be fine even if you strip them of their fortune. The foolish won't.
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Bballer2306
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Well, atleast we can all agree that Andrew Bogut was correct about what he said.
He said pretty much that to many of these NBA Players waste their money on bling bling, fancy cars, fancy homes and all other junk. While Bogut said he is going to save his money up for when he retires so he does not go broke like most NBA Players.
Although a lot of people hate what Bogut said, he was damn right.
He said pretty much that to many of these NBA Players waste their money on bling bling, fancy cars, fancy homes and all other junk. While Bogut said he is going to save his money up for when he retires so he does not go broke like most NBA Players.
Although a lot of people hate what Bogut said, he was damn right.