Who thinks this is just crazy?

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  #1  
Old 06-22-15, 11:58 PM
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Who thinks this is just crazy?

Saw a recent story on my news feed. Talking about an NFL player who hasn't spent any of his salary and lives on endorsements and marketing...well, that's a smart move I think in a field where your career could end in 5 seconds.

Here's the part that irks me...
did not make much money when he first entered the NFL as a second-round pick. His first contract included a $1.8 million signing bonus and his salaries during his first two seasons were $320,000 and $450,000, respectively
Ok, so since when is over $2.5M in 2 yrs not much money? And he was low in the draft? OMG!

People talk about CEOs being overpaid and I agree in some cases, but this is for an unproven athlete that could be a bust.

Lets look at the numbers...

Say the average person works about 45 years? (I know, that's probably low). They would have to average $55K a year to even save that much after 45 yrs!

Hey, if I got $2.5M at 23 or so, I'd buy a decent house, a decent car or 2 and bank the rest and I'd be set for life no matter what else happened. (I think I would have been pretty close to that attitude back then?? Or maybe not...but at least I'd have a house and some cars when I went to work.)

OK...rant over.
 
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Old 06-23-15, 02:03 AM
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Of course it is crazy but so are salaries across the board in the entertainment industry. And professional sports ARE just entertainment for the masses.

Still, you are forgetting that in most cases the player does not get a lump sum payment but instead has it spaced out over a few years and often with many different contingencies that are never mentioned in the mass media. It is done in a manner that seeks to reduce the taxes on such huge incomes by paying it out over years, by buying an annuity, often one that doesn't even begin a payout for ten or twenty years, by life insurance policies and other things that are either non-taxable or taxed at a lower rate.

There are also the costs involved in maintaining an "image" for all the fans. A star cannot live in a regular house, he must have gold-plated bathtub faucets as well as have a live-in maid and often a butler as well not to mention the "eye candy" on his arm.

Lots more.
 
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Old 06-23-15, 02:50 AM
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You see the same thing with Lottery winners (big winners). Many are broke after a year or so, even winning millions. It is the mindset of quick-rich. Buy all your relatives homes or cars, etc. Not a sensible way of spending, or keeping money.

Having never been placed in that situation, I can look from outside the bubble and "say" what I would do, and it would be very different based on what experiences others have had. Let brother in law buy his own house.
 
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Old 06-23-15, 03:36 AM
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Some folks just blow whatever money they have [small or large amounts] Now I could see paying off the kid's mortgages and such if I won the lottery .... but they say you have to play the lottery to have a chance of winning and I don't buy the tickets They say you have a better chance of getting struck by lightning than winning the lottery. While I've been close to a few lightning strikes - I've never been struck

IMO smart folks will always be able to live within their means with a little left over!
 
  #5  
Old 06-23-15, 04:46 AM
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Sports salaries are ludicrous. And why? Because we let them be. Don't buy a ticket and it will go away. What's an NFL ticket cost or an NHL tocket cost. It's just stupid to pay that price. But yet we as a people do it everyday. I don't. I won't.

And here's the ironic part. Would you buy a product that does not preform? Would you support a product or service that can't provide even part of what it's suppose to? Of course not. How about a tool that will promise to cut wood, steel, paper and anything you want in one clean swipe. Except it only works sometimes. Cost is $535.00. No refund if it does not preform. How about a lawn service that will only cut your lawn when they feel like it. $1000 a year. You won't pay it. Right?

And yet in the name of entertainment we will pay big $$$ for sport tickets even if the team consistently under preforms. I'll use my own home town sports team of the Buffalo Bills and Buffalo Sabres. They don't even provide entertainment. Yet most games are sold out! Make no sense to me.

Now see what you've done? You got me started!
 
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