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

[dhsilv2]

Can't blame em. When they say plan for the worst they don't mean a complete halt of world's economy.

Living paycheck to paycheck is pretty bad for someone making 50k and that's by no means a lot of money. For someone making millions...if you can't go 6 months without cash, that's just really bad.

[VancouverRaps]

I'm not surprised but this is pretty sad. I get that they don't have a lot of free time to focus on investing/planning and put a lot of blind faith into "experts" but still, it's hard to make any excuses in 2020.

[SF_Warriors]

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?

How many people are making a million dollars or more each year? Like someone noted in this thread, NBA players living paycheck to paycheck is a choice. Most people living p2p that don't make 6+ figures a year have no choice or their means to get out of it are much more constricted. No sympathy for a person making millions a year going broke. They had every means to avoid that life.

If you gave everyone in the world anywhere near the average nba player's salary I would bet most could have months of expenses in the bank, bro..

[SF_Warriors]

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?

Of course there are. My dad had to send monetary support to his family back in the motherland and he was not making 6 figures at the time, had a mortgage, a family of his own to raise... I've had people ask me to borrow money when I was barely out of college with my first job. Leeches are everywhere. I would expect a guy making 7 figures, even if it is a couple mill to have tons of people trying to get a piece of the pie.

[Jay 20]

They might make 100 times what some of us make, but in some cases they're bills/cost of living is 100 times more than ours too.

Were you intentionally paraphrasing Patrick Ewing, or was that a glorious coincidence?

Gonna be honest, I have no idea what your referring to so I'm going to have to say glorious coincidence.

[Hindenburg]

A lot of people see the $10 million salary and think a player get to keep the entire $10 mil. It doesn't work that way. After all the taxes and fees, I would say maybe $3-4 mil goes to the player.

You cant be that ignorant, can you?

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.

NBA agents arent permitted to receive more than 4%, of their client's playing contracts.

90 % of pro athletes are stupid with their money. Always have been, always will be.
A lot of it has to do with being young and showing off for teammates and ho's. I dont feel sorry one bit for someone that makes nba minimum money (510k a season) and is living paycheck to paycheck.
People out here supporting a family, paying a mortgage on 50k and even less

There is city/state and jock taxes involved, escrow, probably some other hidden/unpublisized fees. Look at the chart below.
lol @ you calling me ignorant and then you give me some made up bs about 90% and impressing ho's. Where are the sources for that?

[Hindenburg]

A lot of people see the $10 million salary and think a player get to keep the entire $10 mil. It doesn't work that way. After all the taxes and fees, I would say maybe $3-4 mil goes to the player.

How is that any different from what happens in the normal world for the rest of us? When we say we make 75k, after taxes and deductions you might 'only' be getting to keep 55, not the full 75. (just very rough figures BTW)

I don't think anyone assumes that a player earning $10MM a year is getting the full 10 when they themselves don't get to keep their entire salary either.

I get what you're saying but you'd be easily paying 2x in tax/fees and were ending up in low 30k if you were taxed like Lowry for example. My main point was that - open up any thread about x NBA player going broke and half the replies are "Oh he made 100mil in career earnings. How do you blow 100mil?", nobody mentions net pay of being closer to $40mil. Player never received the full 100mil to begin with.

[Metallikid]

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

FTFY

[Pennebaker]

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?

How many people are making a million dollars or more each year? Like someone noted in this thread, NBA players living paycheck to paycheck is a choice. Most people living p2p that don't make 6+ figures a year have no choice or their means to get out of it are much more constricted. No sympathy for a person making millions a year going broke. They had every means to avoid that life.

If you gave everyone in the world anywhere near the average nba player's salary I would bet most could have months of expenses in the bank, bro..

Expenses typically increase with your earnings.

But 1/3 of everyone in the US making between 50k to 100k also live paycheck to paycheck.

Its not uncommon at all in the United States for younger people to live paycheck to paycheck.

[Chris Porter's Hair]

They might make 100 times what some of us make, but in some cases they're bills/cost of living is 100 times more than ours too.

Were you intentionally paraphrasing Patrick Ewing, or was that a glorious coincidence?

Gonna be honest, I have no idea what your referring to so I'm going to have to say glorious coincidence.

https://quotefancy.com/quote/1180711/Patrick-Ewing-We-might-make-a-lot-of-money-but-we-also-spend-a-lot-of-money
He dropped this one during a labor dispute. It somehow didn’t generate a lot of sympathy for the players.


Sent from my iPhone using RealGM mobile app

[-G-]

This is a bit shocking. The average salary is almost $8M. I would say, however, that giving anyone that much money, in any walk of life, that early would result in a similar situation...

I don't think I've ever been less shocked by something.

Everything is relative. What sounds like a lot of money to you is their normal. This goes for anyone who makes 200K, 500K, etc.

[Capn'O]

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.

Whoa whoa whoa. What's wrong with electric chainsaws

You can get a decent one for like $100 and saves tons in projects.

[Wonka]

Forced savings? Are you guys serious?

How about we just let these grown ass men do whatever they’re going to do? We are talking about multi-millionaires for crying out loud. Accountability is still a thing. If even a minimum contract player can’t figure out how to be responsible with their earnings, that’s completely on them. These aren’t children. People make choices and live with them.

[HollowEarth]

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.

What's wrong with electric chainsaws

You can get a decent one for like $100 and saves tons in projects.

I'm not trashing electric chainsaws or pools or whatever. Pools are nice. Landscaping is nice.

I'm saying that these athletes are doing the same stuff as a lot of Americans. There was that study a while back where they interviewed people about a hypothetical $400 emergency. Over 10% of folks said that they'd have to stop paying some of their bills, and over 50% said that they'd have to look for a way to borrow the money.

[SF_Warriors]

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?

How many people are making a million dollars or more each year? Like someone noted in this thread, NBA players living paycheck to paycheck is a choice. Most people living p2p that don't make 6+ figures a year have no choice or their means to get out of it are much more constricted. No sympathy for a person making millions a year going broke. They had every means to avoid that life.

If you gave everyone in the world anywhere near the average nba player's salary I would bet most could have months of expenses in the bank, bro..

Expenses typically increase with your earnings.

But 1/3 of everyone in the US making between 50k to 100k also live paycheck to paycheck.

Its not uncommon at all in the United States for younger people to live paycheck to paycheck.

Nba players have a means to not live paycheck to paycheck and still live a comfortable life. People making 50 to 100k do not have that kind of luxury unless they go out and take a risk and suceed.That is the difference. Nba players get millions and have guaranteed contracts. They have every means to not go broke, much more than a regular person. Just because a number of those players are not responsible financially or make unwise life decisions does not make that untrue.

[Inklink]

That's pathetic tbh.

[Johnny Bball]

Players 11-15 on the roster trying to keep up with the very rich 1-10... most just starting out in life...this is pretty easy to imagine.

And somehow this thread is six pages and someone fails to mention 11-15th spots are a third of the league.

[bondom34]

I truly wonder how much players spend on fashion every year on stylists as well. There is no chance guys like Kyle Kuzma, Westbrook, etc dress themselves. They wear the clothes maybe once and then who knows.

Quinn Cook ALWAYS wore his Warriors Nike tech fleece outfit almost every game — dude knew not to spend money on drip esp with his income.

Stylists I'd have no clue but I'd guess a fair amount of clothes are also free from sponsors. Nike/Adidas/whoever, or some guys have fashion lines.

I always remember the story about Westbrook doing his own bills by hand in the facilities in OKC. Feels like some guys just have a better handle on what they can and can't do. I'm guessing CJ is that way too (he's always seemed like a smart guy and Lehigh's a solid school).

[TimRobbins]

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

yeah i've thought this for years. how they haven't implemented a forced savings for their pension of maybe 25% for all players under the age of maybe 26 or 27 is unbelievable to me. how many guys who made 40 million need to go broke before they do this?

They have already done it to some extent, but not enough IMO. They need guarantee at least 100K per player/year for every player who played in the league 4 seasons or more.

[chitownsalesmen]

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?

How many people are making a million dollars or more each year? Like someone noted in this thread, NBA players living paycheck to paycheck is a choice. Most people living p2p that don't make 6+ figures a year have no choice or their means to get out of it are much more constricted. No sympathy for a person making millions a year going broke. They had every means to avoid that life.

If you gave everyone in the world anywhere near the average nba player's salary I would bet most could have months of expenses in the bank, bro..

You'd be wrong. 70+ % Of americans live paycheck to paycheck, sure at first most people wouldn't even know how to spend NBA level game checks, but they will eventually get acclimated to that new salary and find new more expensive way to spend their new found wealth.

The problem is we don't teach kids about money, so even guys who make it to a literal 1-a-million situation like being a pro athlete a lot of times will still end up spending their whole check week after week. Look at Mike Tyson how many millions upon millions did he make over his career? He wound up broke too.

Hell, you chance of filling for bankruptcy is HIGHER if you win the lottery, the problem is societal wide its not limited to NBA players being especially bad with their money more so then any-other group of people. Hand-to-mouth, its the american way.