CJ McCollum estimates 1/3 of players live paycheck to paycheck

[foreigngrammar]

Just be Dirk!

Well, being raised in a german middle-class family has some benefits

[pontius]

People act like every player in the NBA is getting at least $15-20 million before taxes even if we only count full time players and not 2 way contracts, I bet the vast majority of players out there make under $3 million a season before taxes.

That is a great deal of money, but it's not like the vast majority of NBA players have insane money. I also will point out it's extremely easy to fall into representation of a level of living there are $350k a year Doctors out there that spend that much each year easily. They have to have the nice car, nice house, nice clothes etc... that **** adds up quick.

Come on, man. For 2019-2020 the average NBA salary is $6,936,154; the median: $2,905,800. The average physician salary is at 225k, with only certain specialists peaking at 300-500k. Compared to the average doctor the average NBA player makes insane money. The league should step up and offer a solution if there are that many people living from paycheck to paycheck.

[drosereturn]

People act like every player in the NBA is getting at least $15-20 million before taxes even if we only count full time players and not 2 way contracts, I bet the vast majority of players out there make under $3 million a season before taxes.

That is a great deal of money, but it's not like the vast majority of NBA players have insane money. I also will point out it's extremely easy to fall into representation of a level of living there are $350k a year Doctors out there that spend that much each year easily. They have to have the nice car, nice house, nice clothes etc... that **** adds up quick.

Come on, man. For 2019-2020 the average NBA salary is $6,936,154; the median: $2,905,800. The average physician salary is at 225k, with only certain specialists peaking at 300-500k. Compared to the average doctor the average NBA player makes insane money. The league should step up and offer a solution if there are that many people living from paycheck to paycheck.

Yeah but they get taxed way more and your looking at kids vs some of the smartest people in the country who have PHDs.
Some people will always go broke regardless of the money they get. 10mi. 100mil. After they go broke, they learn their lesson.

[trickshot]

I'll go as far as say 90% of instagram show offs including athletes and musicians blow their entire paychecks on shiny material possessions. The slightest financial hiccup will throw them in a crisis

So many buy cars and houses without realising it could cost just as much to maintain on a yearly basis. Very few rich people actually feel rich

[Drou]

Yeah well, we believe you Cj...the issue is that we don't care...at all.

[koningcosmo]

i can tell you this isnt only with athletes, but with all business people, working people ETC. You can have dokter A and dokter B they both make 300k a year, dokter A is a millionair after 10 years, Dokter B doesnt have anything in the bank waiting for that next pay check. With entrepreneurs its even worse, thanks to corona i see clients of mine going bankrupt who used to make alot of profit yet they didnt put anything into the business, i see way smaller and more responsible entrepreneurs who make alot less survive because they have something in the bank to survive.

[C3H6N6O6]

How do these players not learn how to control their spending habits after 1 or 2 years is beyond me?
I grew up poor but started making good money when I was 26. I spent almost all the money I made the first year but at the end of the year it was easy for me to see that I was spending too much and I have saved more every year since then.

[J-Wolves]

I mean, probably the same amount of people on here do too.

How many of you have 3-4 month of expenses in your bank?

This. People don't need loads of bathrooms, central air, giant kitchens, pools, new cars, dope lawnmowers, electric chainsaws, those projector that put ghosts on your house for halloween, grass, really grass is useless, cable, flat screens. A lot of the U.S. is living paycheck to paycheck. The attitude just looks a lot stranger when you watch somebody burn through a six figure paycheck.

Big example: Mitsubishi Mirage. It's a little car designed for Southeast Asia. Mitsubishi has been trying to sell them over here. It's got room for four passengers, a big hatch, fold down seats, safety features, backup cameras, a touchscreen, great fuel economy, a cvt, good reliability, and it's cheap to maintain. Nobody buys them. If your neighbor gets a heavy duty truck, lifts it, and decks it out with chrome and bedliner, a lot of folks feel like, "How the hell am I gonna park a little Vietnamese-market hatchback next to that?" NBA guys are making that decision on bigger scale. When they're parking between a Ferrari and an Aston Martin, they're thinking, "How the hell am I gonna park this dumb work truck between a bunch of supercars?"

Exactly nba players are generally not smart and have ongoing expenses that really add up and soon as the big paycheck stops they are in big trouble, the real owners with castles and historic land ownership (dont pay tax) etc own these (in trust) and are leased to governments and the serf tax payers take care of the maintenance with cleaners and gardeners.

Hookers and blow, luxury homes and cars and family hangabouts are an expense for some of these guys that is simply not sustainable - managers/agents/financial planners should make it clear to these guys 50% of your wage is put away without exception. The general public paycheck to paycheck often does not have this option.

[kuclas]

I’m a healthcare professional. Even in my professional where most make 200k on low end to 1 million on high end and stable decades career job. It’s shocking many are freaking out on losing income during the pandemic. And many don’t have more than 3-5 months of savings.

So it’s just America. People over spend regardless of how much money they make. NBA players are just extreme end of poor decisions.

Yes. I think besides taking care of mom and dad who raised you (usually just the mom in many nba players cases). They got too many leeches, kids from multiple women

Gilbert arenas paying like $100k a month in child support? Jason Kidd had a child support cases as well. These are the lucky ones who haven’t gone broke.

The rule of thumb for these nba players is to put that initial 5 million in an annuity they can’t touch for years. So even if they go broke. They still have the annuity to live off.

[drosereturn]

I’m a healthcare professional. Even in my professional where most make 200k on low end to 1 million on high end and stable decades career job. It’s shocking many are freaking out on losing income during the pandemic. And many don’t have more than 3-5 months of savings.

So it’s just America. People over spend regardless of how much money they make. NBA players are just extreme end of poor decisions.

Yes. I think besides taking care of mom and dad who raised you (usually just the mom in many nba players cases). They got too many leeches, kids from multiple women

Gilbert arenas paying like $100k a month in child support? Jason Kidd had a child support cases as well. These are the lucky ones who haven’t gone broke.

The rule of thumb for these nba players is to put that initial 5 million in an annuity they can’t touch for years. So even if they go broke. They still have the annuity to live off.

They need to be more educated and NBA should not bring in hs kids which will only make the matter worse. Adopting a MLB style pension system would help a lot but they do earn a lot of money and even financial advisors dont guarantee their money will be well managed. I dont know if Spencer Dinwiddie will succeed in his venture but at least he seems knowledgeable and willing to learn about the finance side which is encouraging.

[Galou]

These NBA players live beyond their means. They should follow the blueprint of Samuel Dalembert.

Shiiiiii3333ttttt

Bruh..... If I'm getting paid 8-10 million per year, I'm still buying a Toyata Camry and a mid size house yo. I don't give a darn about living in a mansion.

I've been cheap since forever. Big money ain't gonna change that. Showing off ain't my steez

[guille_4]

The salary distribution in the NBA is right skewed, the average salary doesn't say much for the purpose of this affirmation.

The median salary in 2019/2020 in the NBA is $2.9 Million.

All NBA players pay federal income tax at the highest rate of 37 percent, add state taxes and their effective tax rate may be close to 45% = $1.6 Million per year.

The agent takes an extra 10%, that means that more than 50% of the NBA (who by the way, are much less likely to make a significant amount of out-of-the-court money) = $1.45 Million per year.

That is, more than 1/2 of NBA players live on less than $1.45 Million per year. It's still a **** of money, but it's definitely not that hard to spend, particularly if like many NBA players you come from a poor background and take care of a few people.

[mtron929]

The salary distribution in the NBA is right skewed, the average salary doesn't say much for the purpose of this affirmation.

The median salary in 2019/2020 in the NBA is $2.9 Million.

All NBA players pay federal income tax at the highest rate of 37 percent, add state taxes and their effective tax rate may be close to 45% = $1.6 Million per year.

The agent takes an extra 10%, that means that more than 50% of the NBA (who by the way, are much less likely to make a significant amount of out-of-the-court money) = $1.45 Million per year.

That is, more than 1/2 of NBA players live on less than $1.45 Million per year. It's still a **** of money, but it's definitely not that hard to spend, particularly if like many NBA players you come from a poor background and take care of a few people.

I would be curious to find out how much of these role players still need to spend a lot of money taking care of their family and friends. I can see how everyone latches on to the superstars who make 30+ million dollars a year. But is there same level of burden for a generic player who makes median salary in the NBA?

[guille_4]

The salary distribution in the NBA is right skewed, the average salary doesn't say much for the purpose of this affirmation.

The median salary in 2019/2020 in the NBA is $2.9 Million.

All NBA players pay federal income tax at the highest rate of 37 percent, add state taxes and their effective tax rate may be close to 45% = $1.6 Million per year.

The agent takes an extra 10%, that means that more than 50% of the NBA (who by the way, are much less likely to make a significant amount of out-of-the-court money) = $1.45 Million per year.

That is, more than 1/2 of NBA players live on less than $1.45 Million per year. It's still a **** of money, but it's definitely not that hard to spend, particularly if like many NBA players you come from a poor background and take care of a few people.

I would be curious to find out how much of these role players still need to spend a lot of money taking care of their family and friends. I can see how everyone latches on to the superstars who make 30+ million dollars a year. But is there same level of burden for a generic player who makes median salary in the NBA?

I wouldn't be surprised if players who make 30+ million dollars per year spend over 1.5 million per year in their family, so definitely not the same level of burden.

But I'm sure they help at least their brothers, sisters and their parents. If you make 1 million per year and your family makes around 50K - you'd probably buy them a car, pay for vacation time and give them some money each month. It's very easy to spend 250K in 4/5 people.

[Klayforspicy]

If im a young single athlete making 100k a game i can make that stretch quite a bit without blowing every check. The problem is alot of these players are starting families in their teens and giving money to family members.

[TimRobbins]

This means that the NBA/NBPA is failing. There needs to be a lot more forced savings for these players.

Out of curiosity what do you mean by forced savings? Like taking out additional percentage of players salary and requiring it to be in a retirement account?

I think the NBA is already looking at things like helping to improve financial literacy. Not sure on specifics though. It would seem like that would be something the NBPA would have more control over than NBA.

NBA players basically retire at 30-35. The NBA/NBPA should force players to save enough of their paycheck so they will have a basic income of at least 100K per year after they are done playing. That means every player need to put away at least $2.5M. It's not a classic retirement account, but rather a fund that will be run by the NBPA to make sure every who plays in the league for a few seasons or more has income for the rest of his life.

The fund should be managed as a trust which is protected from creditors in case of bankruptcy and players cannot borrow money against it.

NBPA should also force players to have their money managed by qualified financial advisers.

They should put all of this into the CBA so players cannot opt out.

[mtron929]

This means that the NBA/NBPA is failing. There needs to be a lot more forced savings for these players.

Out of curiosity what do you mean by forced savings? Like taking out additional percentage of players salary and requiring it to be in a retirement account?

I think the NBA is already looking at things like helping to improve financial literacy. Not sure on specifics though. It would seem like that would be something the NBPA would have more control over than NBA.

NBA players basically retire at 30-35. The NBA/NBPA should force players to save enough of their paycheck so they will have a basic income of at least 100K per year after they are done playing. That means every player need to put away at least $2.5M. It's not a classic retirement account, but rather a fund that will be run by the NBPA to make sure every who plays in the league for a few seasons or more has income for the rest of his life.

The fund should be managed as a trust which is protected from creditors in case of bankruptcy and players cannot borrow money against it.

NBPA should also force players to have their money managed by qualified financial advisers.

They should put all of this into the CBA so players cannot opt out.

Most likely, the players will not vote for that. In some sense, it is admitting that they can't manage their money, and they need mommy and daddy to look out for their best interests.

[mtron929]

The salary distribution in the NBA is right skewed, the average salary doesn't say much for the purpose of this affirmation.

The median salary in 2019/2020 in the NBA is $2.9 Million.

All NBA players pay federal income tax at the highest rate of 37 percent, add state taxes and their effective tax rate may be close to 45% = $1.6 Million per year.

The agent takes an extra 10%, that means that more than 50% of the NBA (who by the way, are much less likely to make a significant amount of out-of-the-court money) = $1.45 Million per year.

That is, more than 1/2 of NBA players live on less than $1.45 Million per year. It's still a **** of money, but it's definitely not that hard to spend, particularly if like many NBA players you come from a poor background and take care of a few people.

I would be curious to find out how much of these role players still need to spend a lot of money taking care of their family and friends. I can see how everyone latches on to the superstars who make 30+ million dollars a year. But is there same level of burden for a generic player who makes median salary in the NBA?

I wouldn't be surprised if players who make 30+ million dollars per year spend over 1.5 million per year in their family, so definitely not the same level of burden.

But I'm sure they help at least their brothers, sisters and their parents. If you make 1 million per year and your family makes around 50K - you'd probably buy them a car, pay for vacation time and give them some money each month. It's very easy to spend 250K in 4/5 people.

At certain point, it still doesn't add up though. According, to your numbers, these guys are taking home 1.45 million dollars a year. If they spend 250K a year on family (which is amazingly a lot), you still have 100K per month coming in. And if we are honest about expenses, most people buy a car and drive the same car for 6-7 years so a car is a one-time expense. You buy a nice home (which is an investment as well) and then you are done with the two most expensive items for the next 5-10 years. Still a lot of money left to save.

[Dzon Dilindzer]

cj mccollum will be great analyst one day, if he decides he wants to become one

seems like a bright, well spoken person

[TimRobbins]

Out of curiosity what do you mean by forced savings? Like taking out additional percentage of players salary and requiring it to be in a retirement account?

I think the NBA is already looking at things like helping to improve financial literacy. Not sure on specifics though. It would seem like that would be something the NBPA would have more control over than NBA.

NBA players basically retire at 30-35. The NBA/NBPA should force players to save enough of their paycheck so they will have a basic income of at least 100K per year after they are done playing. That means every player need to put away at least $2.5M. It's not a classic retirement account, but rather a fund that will be run by the NBPA to make sure every who plays in the league for a few seasons or more has income for the rest of his life.

The fund should be managed as a trust which is protected from creditors in case of bankruptcy and players cannot borrow money against it.

NBPA should also force players to have their money managed by qualified financial advisers.

They should put all of this into the CBA so players cannot opt out.

Most likely, the players will not vote for that. In some sense, it is admitting that they can't manage their money, and they need mommy and daddy to look out for their best interests.

NBPA is not run by idiots. The players will vote for that since its best for them and the older, smarter guys know it. They already established a global pension plan. They simply need to expand it.