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maybe because i dont really watch baseball or football i am just hyper sensitive to it in the basketball world but it seems nba players have a large % of players who cant manage their money ever.
They'll have call it the National Bankruptcy Association soon!
And yes, I laugh because how does one blow through tens of millions of dollars?
I'm sure any of us "normal" people on here, if given $10 million dollars, would be able to live off that not only for the rest of our lives but our children and maybe even grandchildren. Even something as simple as diversifying that money into boring blue chips, mutual funds, etc. would not just protect but grow that fortune.
They'll have call it the National Bankruptcy Association soon!
And yes, I laugh because how does one blow through tens of millions of dollars?
I'm sure any of us "normal" people on here, if given $10 million dollars, would be able to live off that not only for the rest of our lives but our children and maybe even grandchildren. Even something as simple as diversifying that money into boring blue chips, mutual funds, etc. would not just protect but grow that fortune.
Because you have kids from the ghetto where generations never knew any form of financial security coming into tens of millions of dollars without knowing how NOT to blow it all. Financial counceling really needs to be mandatory for all new players in the league to help prevent this from happening further. They can start with advice from former players (like Kobe) on how not to get taken advantage of by those in your life, including family.
Because you have kids from the ghetto where generations never knew any form of financial security coming into tens of millions of dollars without knowing how NOT to blow it all. Financial counceling really needs to be mandatory for all new players in the league to help prevent this from happening further. They can start with advice from former players (like Kobe) on how not to get taken advantage of by those in your life, including family.
even sound financial planning doesnt always work, ask tim duncan whos financial adviser is being used for mismanaging funds.
the ghetto point IMO is very valid also.
Quote:
Sure NBA Players make a lot of money, but we spend a lot too."
Hoop They get a bad rap. Guys like Latrell Sprewell proclaiming, "I've got a family to feed," in declining a 3 year, $21 million contract.. Miami Heat's Gary Payton isn't sure how many Bentley's he owns. "I've got four of five of them," he says. I say that about how many clean pairs of undies I've got when deciding whether or not to do laundry. Conversely, I know exactly how many Bentleys I've got.
My personal favorite. Patrick Ewing as President of the Player's Association during contract negotiations, "Sure NBA players make a lot of money, but we spend a lot too."
So, this was something different. This month's Sports Illustrated had an article on Toronto Raptors' Forward, Matt Bonner. No, he's not a superstar. He can rest assured that he will never have to worry his chances of making the Hall of Fame. But that's not very important these days. He is 6'10" and not clumsy. That's worth a $4 million, two year contract.
So, what does a guy like that do? Phat sportscar? Sick threads? Pimped out pad? Nah, he lives like us po' personal finance bloggers. He doesn't own a car. Instead, he takes the subway. He lives in a one bedroom apartment, and moved his parents up from a two bedroom condo to a three bedroom house. When he had an itch to upgrade his subway sandwich to "double chicken" he passed. At two bucks, he thought it was a rip-off!
Not surprised by Miles mishandling that amount of money, always seemed to be a dumbass.
But this quote in the article:
Quote:
NBAPA vice president Adonal Foyle, quoted in the Belleville News-Democrat piece, pointed out that sixty percent of ex-NBA players file for bankruptcy within five years of their retirement.
The NBA has instituted programs\changes to help address some of this.
The key is to bolster their pensions which in most cases can't be touched by creditors thus guaranteeing them income for life because there is just no helping some people with spending problems whether they're NBA or work in construction.
They've also put rules in place about having a money manager that isn't a relative.......
Lifestyle, child support, people taking advantage, etc... And absolutely no clue.
Most of us middle class folk, even though we're not rich and not that good with our money have lived a "normal" life not too much excess and/or gradual changes. A lot of ball players, especially from poor places are living extremes.
A pension is a great idea, and I wonder if the irony of only making 50k a year in retirement would be more of an incentive to not blow their money than never imagining they'll be broke.
Lifestyle, child support, people taking advantage, etc... And absolutely no clue.
Most of us middle class folk, even though we're not rich and not that good with our money have lived a "normal" life not too much excess and/or gradual changes. A lot of ball players, especially from poor places are living extremes.
A pension is a great idea, and I wonder if the irony of only making 50k a year in retirement would be more of an incentive to not blow their money than never imagining they'll be broke.
I think their pensions are a lot more robust than that, especially now with the big deals for even the mediocre guys. Take the 70mil mozgov just got (or thereabouts) and take 5% to fund a pension. $3.5million plus investment returns over time would pay a guy like that starting at say age 40 probably 300k a year pretty easily until death.
There is so much money in the NBA even prior to the new deal that setting up anyone that had a 5-6 year career with 100k/year pension starting at age 40 would be pretty easy and they wouldn't even notice the income missing from their check.
I seem to recall OJ's pension pays him 100k/year or more and he never made anywhere near the money the NBAers are getting. It was news because the goldman family couldn't touch his pension.
I think that they could easily refine that and address the issue, if not the owners the players association should do this to protect their guys that don't have the savy or discipline of others.
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