Wednesday, May 7, 2008

cut tha check

Today is Wednesday. Let's talk about sports today. In particular, the NBA. Check this out below...

Top NBA Salaries

1. Kevin Garnett Boston $23,750,000

2. Michael Finley Dallas / San Antonio $21,696,750

3. Stephon Marbury New York $20,109,375

-. Allen Iverson Denver $20,109,375

5. Shaquille O'Neal Phoenix $20,000,000

6. Jason Kidd Dallas $19,728,000

7. Jermaine O'Neal Indiana $19,710,000

8. Chris Webber Golden State $19,596,244

9. Kobe Bryant LA Lakers $19,490,625

10. Tim Duncan San Antonio $19,014,187

-. Tracy McGrady Houston $19,014,187

12. Baron Davis Golden State $16,440,000

-. Shawn Marion Phoenix $16,440,000

-. Steve Francis Portland / Houston $16,440,000

15. Antawn Jamison Washington $16,360,095

-. Dirk Nowitzki Dallas $16,360,095

-. Paul Pierce Boston $16,360,095

18. Ray Allen Boston $16,000,000

19. Rashard Lewis Orlando $15,600,000

20. Ben Wallace Cleveland $15,500,000

As you can see, these dudes are BALLLLLIIIN'!!! But let's look deeper than that.

When you see the mountains of ice on guys' necks, the designer clothing, the cars, the Cribs-worthy … uh, cribs, and all the rest of it, you don't think it would be possible for NBA ballers to run out of money. But it very much is. According to the Players' Association, it is estimated that about 60% of players go broke just five years after leaving the League.

"Sixty per cent is a ballpark. But we've seen a lot of guys who've really come into hard times five years after they leave the league," said Roy Hinson, the former NBA forward who's a representative for the players' association. "The problems are, for a lot of guys, they have a lot of cars, they have multiple houses, they're taking care of their parents. They're taking care of a whole host of issues. And the checks aren't coming in anymore."

"I've seen (an NBA player) having two cars a day to drive. You know, 14 cars," said Raptors sharpshooter Jason Kapono. "Think about how absurd it is. You say 14 cars. All right, you may have some kids, a family of nine. But a single guy having 14 cars? It's one thing if Bill Gates wants to do that. But when you're 22 years old and you don't even have kids yet, it's not good."

Kapono, then, wasn't the least bit surprised when a representative of the NBA Players' Association addressed the Raptors recently on matters of financial prudence. A statistic was cited during the meeting that startled some of the hoopsters. It was said that 60 per cent of retired NBA players go broke five years after their NBA paychecks stop arriving.

"How could that be?" said Jamario Moon, the Raptors rookie. "I don't want to believe that stat."

But that stat, used by the players' association to get the attention of young millionaires, is thought to be an educated estimate.

Public stories of NBAers in financial trouble occasionally make headlines. Back in October, Jason Caffey, who made an estimated $29 million during his eight-year NBA career, was in bankruptcy court seeking protection from his creditors, among them the seven women with whom he fathered eight children. And late last year Latrell Sprewell, who famously turned up his nose at a $21 million contract offer – "I've got to feed my family," was the money quote – had a yacht worth more than $1 million repossessed.

Hinson said the problems go far deeper than the headlines. The players' association has long recommended a financial firm that offers players free second opinions on their financial particulars, but getting players to act is a challenge.

"Sometimes you can stop the bleeding, and other times you can't stop the bleeding," said Hinson, who added that many players associate with "too many `yes' people."

"Sometimes you need someone to say, `No, you can't buy that.' I fell prey to that myself, and I know a lot of people I played with who had the same problem," said Hinson, whose 10-year career ended in the early 1990s.

"It takes a strong constitution and a good team of advisors around you to make sure you're doing the right things."

Ballin on a budget? Shopping with coupons? Probably not. In reality, some of these NBA dudes live just like most of us do...in/around/above our means. Keep in mind that an NBA contract is GUARANTEED!!! So if a bum...i mean player like Chris Webber signs a contract with a team that will pay him 60 million in 3 years...then that is the money that he will get. But Uncle Sam is gonna take his cut first! With the average player's salary having approximately doubled in a decade to $5.36 million, they have a huge start over people like us. What's your take? Do you feel for them? Do that make too much money? What can be done to prevent this from happening to others?

Holla!

37 comments:

Rich said...

1st - I'm up tonight and I heard you post after midnight.

Now I'll read the post.

Rich said...

Ain't no way I feel for them. But the word says it best. A FOOL and his money will soon part.

Most of those cats are just young, dumb, and full of cum. With all the staff the NBA has around them, they could easily make better decisions, but oh no, they are too busy ballin'.

I've always been an advocate of keeping it real with friends. I don't like yes men, tell me the real. If I'm doing something wrong, tell me. Don't agree with me or tell me what you think I want to hear so as not to hurt my feelings. I agree that many of them need more people like that around them. We all do.

Now, on the flip side, I think the problem is prevalent in the African American community. We don't really study economics the way we should. We don't really look at investing as a community the way other ethnic groups do. We believe in getting rich by way of the LBL system. Liquor Store, Barber Shop, and Lotto. Those are our staples. Of course I'm being sarcastic, but there is some truth to that. If you gave the average black person a million dollars they would think they could kick it forever off of it. They would spend it down to about $100K before they would realize they needed to do something to ensure the money keeps rolling. However, by that time, they got notes on so much stuff, the money is getting eaten up monthly and their efforts to grow the loot just won't work as fast.

Like my man Jigga says, F*ck rich, lets get wealthy. Wealthy is a state of mind that keeps the money rolling for generations. Not a hit it and kick it type mentality.

Sorry for the long comment, but I love talking about finance. Holla.

PrettyBlack said...

We (our kids) are taught more of the spend aspect of the game of life than the save aspect.(most)of Our children are taught bling...Period. It doesn't help that Black people as a whole are just becoming part of the power set so we-at 30-40-years old are basically teaching ourselves money strategies.

I(I can't speak for everyone) was basically taught how to make ends meet, never enough about making ends. Education was it...nothing about finances. It's time Black people started making their kids take economics in school, learn about the dollar, so our young millionares can keep flipping their riches.

All most of those cats care about is who see's them. But there is an old saying that goes:
How does a rich man stay rich? He cries broke.

PrettyBlack said...

I just read richs' comment and he's right about the investment thing. Black folks invest into a hole of nothing every Sunday...faithfully giving their 10%. If they would take their money, pay all of their bills, pay themselves 10% every payday-THEN pay the church they would be much wiser...And much more wealthy.

The Jaded NYer said...

Do they make too much money? Listen, if some fool wants to pay them trillions to dribble a ball down a court I can't be mad at that.

Do I feel bad for them? sort of; many times these are KIDS who have this money fall in their laps with no real knowledge on how to make that money work for them or even last for a lifetime.

Prevention? I don't know about that... a lot of these dudes are arrogant like a mo-fo, don't know if they would listen to wise advice about money. Perhaps some of the older cats could school them on it, the guys who have managed to invest well after retirement.

but why you got me worrying about some overgrown, blingin' fools? It's not like they're about to pay my rent or nothin'! F*ck 'em!! LOL

Mizrepresent said...

Frowning @Rich being first, hmmph!

-Now that i'm over that...i think they should institute a mandatory savings/retirement plan, where money is withdrawn from each check to go into the plan...that's what they do at my job, right, and so these bruhs/fools will have something they forgot about when it's over. BTW its' hard to teach fiscal responsiblity to people who are not of the same mindframe. I know some family and friends who make a 10th of what they are making and blow it all too!

Tabu said...

This young players need to be educated in money management.

I think anyone who comes into a winfall of a substantial amount needs to hire a financial planner, and make sure they sign their own checks.

Most of the times these young people have nothing and then they get this winfall and think "I'm Rich--Can't noting touch me"

They aren't use to having money let alone manageing it.l

They need to be educated. We all know how black folks like to help their family and friends, sometimes they are hustled into helping.

That can all come after some careful investing and planning.

Queen of My Castle said...

I think Rich's comment pretty much sums it all up. I do wish we as a people took overall better care of ourselves from our health and family to finances. It's really frustrating to see such a people of the greatest potential waste what we have all because of a warped mindset, and those of us that try to educate ourselves and others are often the ones criticized and being dubbed as bourgie, arrogant and wanna be yuppies.

Hmmmm...maybe we bloggers can form some kind of coalition to reach the younger kids and school them on finances and the art of wealth to help enlighten our people.

Urban Thought said...

HELL NO I don't feel bad for them.

You get that type of money you have to be smart. No one needs 18 cars or however many you said. Just because you want to take care of your family doesn't mean you have to be an estate for each member. Purchase an apartment building. Put all of them in it and rent out the rest. You can easily have not only a business but a home from that as well.

And just because they are family doesn't mean you have to take care of all of them. They need to work like you do.

But having a family home, a vacation house, a home away from home, owning an island and a penthouse and all that isn't necessary... It's down right excessive. Especially if you aren't paying for anything in full. And have something left to show for it.

Rezidl said...

I'm another fan of the wealth discussion in our community. Even wrote about it in my first book (8 yrs ago).

In 2008, if you still have "yes" people around you, YOU are a clown.

Feel sorry for them....Not really. Again, they've all seen firsthand, heard of, and been warned about the trappings of getting money quickly and blowing it. If this were a new phenomenon, then I'd be more gracious and lenient. This is not new!

Mizrep makes a good point. We all know people who earn different levels of money (less) and blow that too. The education about finances has to continue.

12kyle said...

@ Rich
First mah brutha!

"A FOOL and his money will soon part." Soooo true.

I've never been a fan of the "yes men" in the crew. That makes no sense to me. I mean, you're a grown ass man!

@ PrettyBlack
I agree one hunnid percent! Finance NEEDS to be taught to our kids. Finance and credit!

In these situations, these dudes can change their life with the stroke of a pen. The problem is that they tend to live for the moment and not for the future. 14 cars? Are you kiddin me???

@ Jaded NYer
Good points. It goes back to something that Rich said. The NBA has programs in place to help these dudes out before they get to dire straits. But if you are too big headed to listen, then who's fault is it when you fall on your face?

The NBA can't help you out if you decide to have multiple babies from all of these women.

@ Miz
Dead on point! Some of the families spend the money like THEY are the ones who are making it.

LOL @ u about Rich

@ Tabu
I hear you. Part of the problem is the fact that the League is getting younger and younger. These kids aren't in college for more than a year. A financial planner is a must! But some of these guys are too young to understand how money works. They could be in a situation where the financial planners know more about their money than THEY do. And that's scary

@ Queen
That's a very good idea. I think the first step is knowing and understanding how money and finances work. For example, many of our people have no clue about how the stock market works. I think if we are educated then we can spread the knowledge to the youngsters.

There's also a generation gap. I would assume that most of the people who read this blog is between 25-45. There's a gap between our generation and the "bling generation" that has followed us. If there is not a break it the thought process, then nothing will change.

@ Urban Thought
Good points, bruh. You don't have to spend it all.

I find it interesting that Latrell Sprewell, the man who's company brought the "spinning rims phenomenon" to a culture, had his yacht repo'd and his house forclosed on. Just a few years ago, he was the one who TURNED DOWN a 21 million dollar contract.

12kyle said...

@ Rezidl
You and I need to seriously look into talking to some folks at the School of Business at SC State. We need to do a few seminars.

Jewells said...

Instead of worrying about saying "no" to everyone else, they need to learn to say it to themselves.

They obtain their money too fast so they don't know how to spend properly. The same thing happens to "poor" folk who win the lottery. They are making up for lost time. All that time that they went without...

TravelDiva said...

Well I'm not crying tears for them. I think they deserve the money they make, because the owners of the basketball teams are making much more than that!

But with the right investments, they should be fine, even after taxes!

Torrance Stephens bka All-Mi-T said...

wonder how many will be brok in 10 yrs

Eb the Celeb said...

First off... why didnt my boo D. Wade make your salary list... 2nd... dont be calling my other boo Chris Webber a bum... 3rd... Stephon Headberry I mean Marburry... is highly overpaid...

and yeah, that's why most of these guys have financial advisors... I actually know some players that have a daily spending limit... they can only take a certain amount out of their account per day because otherwise they would be broke...

Anywho... the leagues for the most part get the guys great advisement on what to do with all the money especially with young cats from the hood that are transitioning from sharing the same socks with their brother to make making millions.

Good post though besides the hating!

prettyparker said...

Oooooh are those annual paychecks? I'm green with envy at those salaries. Yes, I am.

Now that I've picked my jaw up from the floor and gave a prayer of thanks for all I do have, I will make a long comment.

I'm not feeling sorry for these players at all. To go broke within 5 of receiving a $5 or $10 million dollar paycheck is foolish. Why? I'll tell you:

The first paycheck and a little common sense will get them through until the last paycheck.

Taxes are a beast, so right there the money falls to $3 or $7 million.

Then the agents take their pay leaving $2.6 or $6.3 million.

If you don't tithe, at least pay yourself and drop 10% into a savings account/MMA/IRA/CD. Heck, under the mattress or in a shoe box in the closet for the crazy times. Leaving $2.4 or $5.7 million from the check.

At 21 or 25 years old, they want to kick it. Cool, I can relate. So get a nice house, a car, some clothes, take vacations, party etc., etc. Just DON'T finance any of it.

With that type of cash, buy the house or car or boat.

The remaining checks should go toward saving and maintaining, not upping the ante on purchases.

And can we please address the lack of personal responsibility and accountability that is rampant with some of these players? If they just can't use a condom, get a vasectomy. It can get reversed once they do decide to settle down. Oh yes I said it!

Rezidl said...

PParker brings up a good point. What's up with these dudes financing such big-ticket items? Buy within reason (relative to their income) and bank the rest. Compounded interest is one of the best things man ever created. Let it work for you because it surely can work against you.

I handle Communications by day, but I play an Economist on TV.

CapCity said...

Ditto what everyone else said! I like Queen of Castle's suggestion. Could the Bloggers here who are financial savvy start a blog that will break down & educate the rest of us who are seeking that kind of financial literacy on our own? I KNOW I need help in that dept. cuz I, too was simply raised to pay bills and save some for a rainy day...but there's got to be more to it than that, right?

This was actually the first "sports" discussion that held my attention cuz sports generally bores me! LOL!

Rezidl said...

QMC....I may have to get Brad to start that blog...

prettyparker said...

Well if there is an 'every day person's guide to building personal wealth (with simple day-to-day steps)' please hip me to that blog. I do try to keep up with a 'get rich slowly' site but I would loooove to have one that catered to (from the perspective of) my people.

MsPuddin said...

they get caught up in the hype. think about it. a lot of the guys that go into the NBA are like you said 22 fresh out of high school or halfway through college.

money management, whats that? Shit I learned that in college and im still working on it. but 14 cars is ridiculous. if I was that rich i wouldnt even have a car, I would hire someone to drive my drunkass around...

The F$%K it List said...

what what, my #1 boo is at the top. I need to get to Boston!

Ok now for the topic, Do I feel sorry for them...its hard to say so many of them come from having much of nothing to being able to get whatever they want when they want. No one taught them how to save and so they don't. One would think their agent, manager would set that up but maybe I've been watchng too much of the game.

I work in finance and I see wealth on a regular basis. I've learned a lot from clients on how to get there and its not by driving 14 cars (HOW STUPID, that's not even a case of I didn't know better who needs two cars a day). Its all about paying yourself first and everything else second. if you have $10 five of it should be stashed away while the other goes to living. God will forgive you if you feed your child and not tide.

I think our kids are negatively effected by the media, music videos etc...and thats not to say that its not a parents responsibility but it makes it even harder when you have people running around talking about Ball to you fall, its way more appealing then "hey come on lets wrap these pennies" (my mom did that with us so we could have savings accounts.)

Brad said...

It's truly a combination of 2 things. The environment where they come from and the I need it now society we live in.

These cats get multi million dollar contracts out of highschool or college. They only thing they've seen their whole life is desperation and despair. But they sure enough got a tv with cable on it. MTV Cribs, Lifestyles of the Rich and Famous, etc. Various commercials with all kinds of extravegant goods.

Then you combine that with the get it NOW mentality and you have the recipe for broke in 10 years.

What sports franchises need to do is assign each of their employees 2 things. An accountant and a Financial advisor. And make meetings with them mandatory. Make fiscal responsibility a part of their organizational profile. Only then will these young rich athletes get a handle on their finances.

karrie b. said...

niggas can't have shit. it's simple...then we wonder why the jews are living so damned good.

black folk gotta have 50 cars and a fresh pair of kicks everytime they come out.

white folk share the same ass hoopty and wear there kicks into the ground.

our mentality is so out of wack...don't get me fuckin started on reparations either. that's a whole 'nother mess on it's own.

'but karrie, can u blame us? we've been oppressed for so long, we feel like we have to be flashy and show off'

...yea, aight.

-karrie b.

karrie b. said...

lmao @ rich "young, dumb, and full of cum..."

the truth if i ever heard it.

-KB

Opinionated Diva said...

This reminds me of people who win the lottery. They get huge sums of money and then need to buy big everything.

Big 20 room homes - why does anyone need a damn house that big? Multiple big cars - dude who had 14 cars was ridiculous. Big boats - sprewell getting his boat repossessed...also ridiculous.

No I don't feel sorry for them.

12kyle said...

@ Jewells
Great point Jewells. I saw this interview the other day with Mike Tyson. He was talking about how frustrating it is for him now b/c he has to "ask" his accountant to spend his own money. At some point in time, you gotta say no.

@ TravelDiva
The owners are making a TON of loot. If you're able to pay a dude 20 mill, then you aint hurting for cash.

@ Torrance
A whooooooole lotta em

@ Eb the Celeb
C'mon, Eb. Webber is a bum. I like Webber but he was STEALING money for years. No hatin. I know a bum when I see one.

@ prettyparker
Yes! These are annual checks. I like the way that you broke it down! I couldn't have said it better. Definitely gotta invest in condoms!!

@ Rezidl
Economist on tv? LMAO!

@ CapCity
Glad that we didn't bore you today. LOL

You WILL be getting more financial information from the 12th Planet. Beleee dat!

12kyle said...

@ Rezidl
You and Brad!

@ prettyparker
This is soooo true! I wanna know, too

@ MsP
"if I was that rich i wouldnt even have a car, I would hire someone to drive my drunkass around"

LMAO @ u

@ The F$%K it List
Umm...you might have to fight off his wife who JUST gave birth to their first child.

The media and its attention on wealth has a lot to do with it. As parents, we fall into the trap by promoting that bs. But at the end of the day, saving and investing money should be a priority.

@ Brad
Good points, bruh. A lotta teams have these things in place. The problem is that some of these athletes are being coddled and baby sat so they ignore this. I mean, you go from having nothing to having millions. You go from not having a checking acct to having to balance a checkbook. I think you have to pay attention b/c you really can't afford NOT to.

@ karrie b
Amen!

karrie b 4 prezident

@ OD
I feel you. I don't feel sorry for them either. They have a "head start" in the race of life.

Don said...

I see you and I both read the same articles. I remember this article, like it was yesterday. I don't feel anything bad for the players. They lived and loved in way that I can only dream of. If and when they go both I am sure they are sad, but @ least they were able to live and love.

Seeing Marbury's name (die-hard knick fan here) almost brings a tear to my eye. Damn bum. LOL.

Don said...

*go broke

Jeff said...

I say make the money while you can. if your a dumb ass a loose it all because of the ice you brought, the cars you drive or the houses you purchased then thats on you. Remember the bills never stop coming even if you payoof your Mortgage or Paid for your car? Ever heard of TAxes and Insurances?
I think the best quote I ever heard from NBA player was Melo? they asked him about his Mybac? He said only two people he knew of had one. One of them was Jay Z. they asked didn't he buy one himself? He said Yes, but i had to take it back because the Insurance was to High. (LOL).
So todays lesson is "Live within your means and you should have life after sports", because I'll be the brother looking for your ride at the auction or your ICE in the Pawn shop.
I'm Out

Queen of My Castle said...

@ Rezidl

You're gonna be a co-host of the blog, right? Right. Glad that's agreed upon.

The F$%K it List said...

I ain't scared of her,I'm from Brooklyn! remember. Alright I'm not trying to break up a marriage besides what would my husband say HAHA

I have already started talking about saving with my son and he isnt even 2. Who knows if he will retain any of it but may as well start now when he actually wants to hear what I have to say.

And we will be rolling pennies up in this joint.

The F$%K it List said...

P.S can't a sista dream DANG 12k

DreamCop08 said...

that's why I always say that I dont have to be rich because I know I would be like those ignorant fools blowing all my little money!!!

Us a black folk dont invest and let our money gain interest or capitalize. All we live for is the now!!!Thats whats wrong with black people. And hell I can be the first to admit it cause I am guilty of it myself!!

12kyle said...

@ Don
Yep! I got this from slam

And yes...marbury is a bum! LOL

@ Jeff
LOL @ Melo. You are soo true, bruh

@ Queen
Don't hold ya breath. Lol

@ The F$%K it List
Broooooooklynnnnnn!!!

@ DreamCop08
Gotta give you props for admitting it. Now, we have to break that cycle