Author Topic: $1.5 million dollar salary going to be "A little hard on his family".  (Read 6284 times)

bigalsmith101

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A professional athlete has stated that his minimum salary for $1.5 million will be a little hard on his family. Press states he's earned $91 million throughout his career..... IDIOT.

http://uproxx.com/dimemag/2015/07/josh-smith-clippers-contract-hard-for-family/

fb132

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I am not surprised, athletes in general are very anti-mustachian. We are talking about athletes who grew up poor and suddenly are rich. Alot of them are not well equipped mentally to handle all that money and spend their money on junk only to realise a few years later that they are broke...samething for music artists (ex: 50 cents) and movie stars.

trailrated

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He's also getting 5.4 million from his former team based on the contract he signed. Poor guy can't make it on almost 7 mil. Tough life.

Travis

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Quote
samething for music artists (ex: 50 cents) and movie stars.

50 Cent is smarter than you give him credit for.  He declared bankruptcy to avoid a civil judgement against him, not because he was broke.

forummm

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Sometimes athletes are paying for not just their household, but also throwing big cash at their extended family too. He could be doing that. Sometimes the extended families feel very entitled.

But $1.5M is enough, and he is probably blowing it.

Suncoast

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What's worse is that he is actually going to earn $6.9M next year in total.  $1.5M from his new team, and $5.4M that the Pistons will continue to pay him for going away.  LA is a pretty HCOL area, but hopefully they can scrape by on this.

MgoSam

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He'll likely be bankrupt within 2 years of retirement.

MrsPete

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Yeah, this is nuts, but I can make two arguments in his favor:

- Professional athletes tend to have short careers, so -- unless he's one of the elite who transitions his career into broadcasting or advertising his own brand of sneakers -- he probably needs this money to last, and he probably doesn't know how to be voluntarily frugal and make his money last.  That is, if he doesn't want to end up coaching high school ball a couple months every year and working at the car wash the rest of the time.

- Professional athletes are required to pay big bucks to people around them.  Agents and publicists, for example. 

Okay, at 91 million, he should be fine -- but these arguments may be true for the guys who just barely make it into pro sports, and they outnumber the 91 mil crowd.

libertarian4321

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Even before this, Josh Smith had a reputation for perhaps not being the sharpest knife in the drawer, being a bit of a jerk, and a pretty poor team mate.  I'm glad he's with the Clippers, not the Spurs.

Maybe the NBA needs to start promoting positive stories about players who are good examples, not like Josh Smith or Allen Iverson or many of the other fools who inhabit the league.

But I guess no one wants to read about a baller who's a two-time academic All American with a 3.96 GPA in Business Administration, has made $30+million over his career, and who lives in a modest house and drives a Chevy Impala, and who's only "bling" is his two NBA championship rings:

http://sports.yahoo.com/blogs/nba-ball-dont-lie/matt-bonner-spends-nba-millions-chevrolet-impala-194706271--nba.html





boyerbt

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Even before this, Josh Smith had a reputation for perhaps not being the sharpest knife in the drawer, being a bit of a jerk, and a pretty poor team mate.  I'm glad he's with the Clippers, not the Spurs.

Maybe the NBA needs to start promoting positive stories about players who are good examples, not like Josh Smith or Allen Iverson or many of the other fools who inhabit the league.

But I guess no one wants to read about a baller who's a two-time academic All American with a 3.96 GPA in Business Administration, has made $30+million over his career, and who lives in a modest house and drives a Chevy Impala, and who's only "bling" is his two NBA championship rings:

http://sports.yahoo.com/blogs/nba-ball-dont-lie/matt-bonner-spends-nba-millions-chevrolet-impala-194706271--nba.html

How about the last line in that Yahoo article, I don't think it could sum up the American mindset on spending any better.

"(But seriously you’ll make nearly $4 million this year buy a damn Audi will ya??)"

zephyr911

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Re: $1.5 million dollar salary going to be "A little hard on his family".
« Reply #10 on: July 27, 2015, 07:03:00 AM »
Quote
samething for music artists (ex: 50 cents) and movie stars.

50 Cent is smarter than you give him credit for.  He declared bankruptcy to avoid a civil judgement against him, not because he was broke.
So he's a dishonest asshole, not a broke idiot. I totally retract my scorn ;)

Proud Foot

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Re: $1.5 million dollar salary going to be "A little hard on his family".
« Reply #11 on: July 27, 2015, 07:39:57 AM »
I'm surprised the NBA Players Association has not implemented a mandatory deferred compensation plan. Seems like it would be very beneficial to all the players.  And I am guessing that $1.5 mil turns into $750k real quick before he even sees any of it.

MgoSam

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Re: $1.5 million dollar salary going to be "A little hard on his family".
« Reply #12 on: July 27, 2015, 08:07:02 AM »
Not defending him, but nearly anyone that goes from a large salary to a smaller one is going to feel pinched. I know that everyone here would be smarter with their money but consider making $500k a year and then going to $150k, I'm sure that many would feel the need to tighten their belt. All I can say is that maybe this could be a blessing for him in that it could force him to consider life after basketball. Too many athletes go from making $10M to nothing after retirement and not having planned for the transition find themselves bankrupt.

It's sad in that investing in index funds during their career would set them with a sizable nest egg to draw upon.

EricP

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Re: $1.5 million dollar salary going to be "A little hard on his family".
« Reply #13 on: July 27, 2015, 09:45:51 AM »
Sometimes athletes are paying for not just their household, but also throwing big cash at their extended family too. He could be doing that. Sometimes the extended families feel very entitled.

But $1.5M is enough, and he is probably blowing it.

Yeah, pretty much guaranteed that he has a mansion for himself and for his momma, and probably a few more bigger than necessary houses for other family members and "close" friends.  Plus, they can't miss their all inclusive month long vacation to Hawaii this year.  How's little brother gonna survive without his helicopter ride?

forummm

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Re: $1.5 million dollar salary going to be "A little hard on his family".
« Reply #14 on: July 27, 2015, 10:35:21 AM »
Not defending him, but nearly anyone that goes from a large salary to a smaller one is going to feel pinched.

If our salaries got cut in half, the thing that would feel pinched is our flow of funds to Vanguard. But maybe people here are the exceptions to "nearly everyone".

sol

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Re: $1.5 million dollar salary going to be "A little hard on his family".
« Reply #15 on: July 27, 2015, 10:52:15 AM »
Not defending him, but nearly anyone that goes from a large salary to a smaller one is going to feel pinched.

If our salaries got cut in half, the thing that would feel pinched is our flow of funds to Vanguard. But maybe people here are the exceptions to "nearly everyone".

Yes, a 50% pay cut would nudge our family savings rate back down to only three times the national average. 

sleepyguy

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Re: $1.5 million dollar salary going to be "A little hard on his family".
« Reply #16 on: July 27, 2015, 12:33:13 PM »
Sadly this is very true, I think the numbers are like 60% are broke after 5yrs out of the league.

Off the top of my head Jamal Mashburn was very successful after retiring and being smart with his money.  And no it wasn't HUGE endorsements after the fact.

http://www.thepostgame.com/node/4178

He'll likely be bankrupt within 2 years of retirement.