FanPost

How to survive on 6.9 mil

Ben Bagley

@L_C_trey


J.Smith

Hey, this past week Josh Smith was reported as saying he is going to have a hard time adjusting to the 6.9 million dollar salary he is receiving this year (1.4 vet minimum from the LA Clippers and 5.5 still owed from the Detroit Pistons). Like most of you I said to myself, damn, it must be hard to be a millionaire! Bewildered and somewhat curious I decided to look into how big money can lead to big problems.

As I started my research I didn’t have to go far into the archives to find a few NBA cautionary tales about athletes and the big money they squandered. If you haven’t already, you have to check out the ESPN 30 for 30 which features Antoine Walker and you will see how the "spend big" culture of the NBA can take a multi-million dollar talent from eastern conference all-star to a PS4 playing, Cheetos eating guy with rented furniture. I love ‘toine, but he reportedly had to pause mid game to wipe the orange Cheetos dust off his hands in order to field a call from the GM of the Idaho Stampede. Yes I know you could argue getting old and eating to many Cheetos led Antoine to that place but he was also broke after a career earnings estimated in the 100’s of millions. Question is does he do the wiggle after a fantastic play in NBA 2K, my guess is yes.

How do NBA players go broke? How can 6.9 million cause any kind of hardship for your family? I am about to explore this with you, but before I do let me preface this with saying I have had a life-long love affair with the NBA and believe their players for the most part are worth every penny when you consider how much revenue the NBA brings in annually.

So I am going to start this scenario with you the reader being a 6 year veteran with a newly signed contract awarding you a gross salary of 5.5 million. In this wet dream scenario you are 6’ 9" forward with tremendous upside, ridiculous vertical leap and slick handles, however you are bad at finances. Also, your one handed tomahawk dunk has earned you the nickname "Hammer".

Good news Hammer! It’s your lucky day you are a millionaire and you just signed with the Clippers. Let’s buy mom that house she always wanted. But wait slow down baby there are few things to take care of first. Reality time, everyone has to pay taxes. So before mom gets her crib lets pay Uncle Sam. You complete your 1040EZ and you are left with an estimated 3 million. Whats that? You don’t want to use a 1040EZ? Ok we will get to your accountant and lawyer later.

3 Million is still a lot of money you say? Ok stay with me here; add your player agent fee of 4% which would land in the 220K per year annually zone. Next up is another good news bad new scenario. Good news! you are moving your family to California what does a 5 bed 3 bath cost? Oh wait an NBA player like you can’t live in a duplex or your cousin’s Vinnie’s basement, so we will hook you up with a mansion in a gated community a fitting residence for an NBA super star. No problem very low end price on that living situation is about 4 million dollars. You don’t have that kind of liquid cash so that will equate to a mortgage payment of 22k per month, Or 264K per year. Add property and school taxes and you looking to subtract another 50k per year. Lets also add in legal and accounting fees of 250K, because there is no millionaire out there that does not have a lawyer and an accountant on retainer. I am also going to throw in a publicist firm because that is not included with your agent fees and someone has to look out for Hammer’s twitter feed and sterling image. Subtract another 200K where does that leave you? Just over two million dollars.

Yes that is still plenty of coin. But we have not accounted for a few things that come along with being an NBA player that has to keep up with those salty vets and their bling. The whips baby! There has got to be a few cars in that southern California drive way. Someone has got to move those cars when you are on the road, they have got to be clean, they have got to be insured and we are not talking the Generals car insurance here these are top shelf automobiles. So let’s estimate we have a humble entourage to help out, a security person and a personal assistant to take care of the family and the whips while you are on the road throwing down those nasty tomahawks. Cost 250K annually.

Ok we are getting close to having everything covered right? Let’s just take care of utilities, family vacations, jewelry, clothes and general expenses while traveling at about 10% of your remaining net income just to be modest and to cover the bases, about 175K will do it Sweet that still leaves you with about 1.5 mil! Or 125,000 a month walking around money, now this is the part of the study that I cannot estimate for you. What about your family, friends and hangers on looking for hand-outs from ole Hammer. Uncle Jeff needs that hair transplant and you are not going to let your favorite cousin attend community college are you? What about that rap album you want to get out or the trip to Vegas you promised your friends when you got drafted. You have to factor that number in yourself and still buy mom that house in Long Island.

Hey these all sound like good problems right? As the rapper Notorious B.I.G once said "Mo money Mo Problems" it’s not easy being young and rich. Expenses pile up fast and the NBA ride is short one. There are not many things you can count on in this journey but if you ever find yourself in this predicament please look me up because I can help you with your finances and moving your Mercedes and what not.

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