Revenge of the Jarvi

This is the stuff that really sucks.

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It seems to me that the NBA players union should somehow educate their players financially as the statistics I just read are absolutely alarming and keep recurring. I suggested the NBA players union as kids like Miles never even went to college. What is just as sad is that someone who earned $9 million in such a short period of time should be in a position to donate large sums to charity and be role models to younger kids. When instead they become the poster child of what one should not do.
Just tragic.
 
NBA has had a rookie transition program for decades. Is it perfect ? Probably far from it but I'm sure it's comprehensive enough and they would align them with the right type of advisors, accountants etc.

I stopped feeling sorry for these guys...this isn't a case of one unfortunate bad deal, but as it reads a decade of continual bad decisions, both personal and business wide. He's in in mid 30's, not 18.
 
Sucks that it happens but when 60% of people in your profession who make astronomical amounts of money file for bankruptcy then you become an idiot if you become part of that statistic. It's really not hard to just put money in a stupid savings account even and spend less than what you make
 
Sucks that it happens but when 60% of people in your profession who make astronomical amounts of money file for bankruptcy then you become an idiot if you become part of that statistic. It's really not hard to just put money in a stupid savings account even and spend less than what you make
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Better than a savings account, investing in a broad market ETF. It's also a lot easier to save when your making millions of dollars per year. But w many people the money goes in one hand and out the other.
 
Most NBA players have zero point of reference when it comes to handling the money they make. They sign a $5 million deal and they think they have $5 million. So many grew up on public assistance that they don't even understand the notion of state and federal taxes. Top tier fed rate is 39% and in NYS the top tier tax rate is almost 10%. Right away half your income goes to the government. ]

Then their is sales tax, property tax, etc. They purchase tricked out cars at over $100,000 that aren't worth close to that 10 minutes after they leave the dealer, spend tens of thousands on clothing, and purchase homes that they can barely pay the mortgage on, all to live the NBA lifestyle. They don't realize a home needs to be landscaped, cleaned, and maintained.

Every time they go out with friends from the neighborhood, they are expected to pick up the tab. Family lines up expected to be helped out financially with loans or gifts that will never be repaid.

It isn't hard to see a $30 million contract wasted by excessive spending. Even if a successful career follows, when the income merry go round stops, they are left with a pile of debt they can't possibly repay.

My parents were children of the depression. They never purchased anything they couldn't pay cash for, and lived debt free below their means. If a furniture salesman or any other type of salesperson suggested to them they could pay on time, they would become offended and tersely reply that they could afford to pay cash. I observed and it rubbed off on me. I avoid debt like the plague, and while I understand its not always possible to do so, it's worked for me.
 
I agree with you 100% Beast as I grew up in the same type of environment and it has served me well but we both had our parents as a point of reference and role model to emulate. As you said I am sure the majority of professional bball and football players have no point of financial reference and are financially illiterate.
Again I stress the NBA players association is clearly failing to properly support their members.
 
Most NBA players have zero point of reference when it comes to handling the money they make. They sign a $5 million deal and they think they have $5 million. So many grew up on public assistance that they don't even understand the notion of state and federal taxes. Top tier fed rate is 39% and in NYS the top tier tax rate is almost 10%. Right away half your income goes to the government. ]

Then their is sales tax, property tax, etc. They purchase tricked out cars at over $100,000 that aren't worth close to that 10 minutes after they leave the dealer, spend tens of thousands on clothing, and purchase homes that they can barely pay the mortgage on, all to live the NBA lifestyle. They don't realize a home needs to be landscaped, cleaned, and maintained.

Every time they go out with friends from the neighborhood, they are expected to pick up the tab. Family lines up expected to be helped out financially with loans or gifts that will never be repaid.

It isn't hard to see a $30 million contract wasted by excessive spending. Even if a successful career follows, when the income merry go round stops, they are left with a pile of debt they can't possibly repay.

My parents were children of the depression. They never purchased anything they couldn't pay cash for, and lived debt free below their means. If a furniture salesman or any other type of salesperson suggested to them they could pay on time, they would become offended and tersely reply that they could afford to pay cash. I observed and it rubbed off on me. I avoid debt like the plague, and while I understand its not always possible to do so, it's worked for me.
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my parents still pay cash for almost everything and I think the only time they ever borrowed was when they bought their house.. That rubbed off on me too. Only time I ever even borrowed to buy a car was 2009 because they were offering 0.9 % financing so I used the money to buy tax free bonds paying 5% so I kept the spread over the 5 years
 
Most NBA players have zero point of reference when it comes to handling the money they make. They sign a $5 million deal and they think they have $5 million. So many grew up on public assistance that they don't even understand the notion of state and federal taxes. Top tier fed rate is 39% and in NYS the top tier tax rate is almost 10%. Right away half your income goes to the government. ]

Then their is sales tax, property tax, etc. They purchase tricked out cars at over $100,000 that aren't worth close to that 10 minutes after they leave the dealer, spend tens of thousands on clothing, and purchase homes that they can barely pay the mortgage on, all to live the NBA lifestyle. They don't realize a home needs to be landscaped, cleaned, and maintained.

Every time they go out with friends from the neighborhood, they are expected to pick up the tab. Family lines up expected to be helped out financially with loans or gifts that will never be repaid.

It isn't hard to see a $30 million contract wasted by excessive spending. Even if a successful career follows, when the income merry go round stops, they are left with a pile of debt they can't possibly repay.

My parents were children of the depression. They never purchased anything they couldn't pay cash for, and lived debt free below their means. If a furniture salesman or any other type of salesperson suggested to them they could pay on time, they would become offended and tersely reply that they could afford to pay cash. I observed and it rubbed off on me. I avoid debt like the plague, and while I understand its not always possible to do so, it's worked for me.
Click to expand...
my parents still pay cash for almost everything and I think the only time they ever borrowed was when they bought their house.. That rubbed off on me too. Only time I ever even borrowed to buy a car was 2009 because they were offering 0.9 % financing so I used the money to buy tax free bonds paying 5% so I kept the spread over the 5 years
Click to expand...

Mj I would have thought you knew a good broker that could do better for you than your 5% bonds. :)
 
Most NBA players have zero point of reference when it comes to handling the money they make. They sign a $5 million deal and they think they have $5 million. So many grew up on public assistance that they don't even understand the notion of state and federal taxes. Top tier fed rate is 39% and in NYS the top tier tax rate is almost 10%. Right away half your income goes to the government. ]

Then their is sales tax, property tax, etc. They purchase tricked out cars at over $100,000 that aren't worth close to that 10 minutes after they leave the dealer, spend tens of thousands on clothing, and purchase homes that they can barely pay the mortgage on, all to live the NBA lifestyle. They don't realize a home needs to be landscaped, cleaned, and maintained.

Every time they go out with friends from the neighborhood, they are expected to pick up the tab. Family lines up expected to be helped out financially with loans or gifts that will never be repaid.

It isn't hard to see a $30 million contract wasted by excessive spending. Even if a successful career follows, when the income merry go round stops, they are left with a pile of debt they can't possibly repay.

My parents were children of the depression. They never purchased anything they couldn't pay cash for, and lived debt free below their means. If a furniture salesman or any other type of salesperson suggested to them they could pay on time, they would become offended and tersely reply that they could afford to pay cash. I observed and it rubbed off on me. I avoid debt like the plague, and while I understand its not always possible to do so, it's worked for me.
Click to expand...
my parents still pay cash for almost everything and I think the only time they ever borrowed was when they bought their house.. That rubbed off on me too. Only time I ever even borrowed to buy a car was 2009 because they were offering 0.9 % financing so I used the money to buy tax free bonds paying 5% so I kept the spread over the 5 years
Click to expand...

Mj I would have thought you knew a good broker that could do better for you than your 5% bonds. :)
Click to expand...

Haaaa. I tried to reach him but he was either traveling or at St Johns games and never in the office :)
 
Most NBA players have zero point of reference when it comes to handling the money they make. They sign a $5 million deal and they think they have $5 million. So many grew up on public assistance that they don't even understand the notion of state and federal taxes. Top tier fed rate is 39% and in NYS the top tier tax rate is almost 10%. Right away half your income goes to the government. ]

Then their is sales tax, property tax, etc. They purchase tricked out cars at over $100,000 that aren't worth close to that 10 minutes after they leave the dealer, spend tens of thousands on clothing, and purchase homes that they can barely pay the mortgage on, all to live the NBA lifestyle. They don't realize a home needs to be landscaped, cleaned, and maintained.

Every time they go out with friends from the neighborhood, they are expected to pick up the tab. Family lines up expected to be helped out financially with loans or gifts that will never be repaid.

It isn't hard to see a $30 million contract wasted by excessive spending. Even if a successful career follows, when the income merry go round stops, they are left with a pile of debt they can't possibly repay.

My parents were children of the depression. They never purchased anything they couldn't pay cash for, and lived debt free below their means. If a furniture salesman or any other type of salesperson suggested to them they could pay on time, they would become offended and tersely reply that they could afford to pay cash. I observed and it rubbed off on me. I avoid debt like the plague, and while I understand its not always possible to do so, it's worked for me.
Click to expand...
my parents still pay cash for almost everything and I think the only time they ever borrowed was when they bought their house.. That rubbed off on me too. Only time I ever even borrowed to buy a car was 2009 because they were offering 0.9 % financing so I used the money to buy tax free bonds paying 5% so I kept the spread over the 5 years
Click to expand...

Mj I would have thought you knew a good broker that could do better for you than your 5% bonds. :)
Click to expand...

Haaaa. I tried to reach him but he was either traveling or at St Johns games and never in the office :)
Click to expand...

I think he also writes a food column on cheese steak sandwiches and lobster rolls so he may have been out sampling. Mmmmmmmm :)
 
"Sixty percent of NBA players file for bankruptcy in the five years after their retirement."

Whew, 60 percent! What the heck would the percentage be on NBA players who entered the draft early.
 
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