[HB]

Thats a whole lot of taxes Pioneer has up there

[EHL]

Originally Posted by Pioneer10

I don't think these guys realize when they got there contract how much they'll actually take back.
The Feds will take close to 37%
The state will come in and then get anything from 0-9% on top of that.
There are special athlete taxes in certain juridictions so they're goes another percentage
Then you got to pay your agent what 5%???? and I'm sure that not based on net income after taxes but gross income

So out of that 5 million dollar contract, the amount you get back is probably close to or less then 50% - 2.5 million to take home. Now an easy estimate on how much once your career is OVER you probably will get back in terms of income from your assets is about 5%. So to bring in $200k to live off when you retire you'd need about 4 million in the bank.

So let's run the numbers on a guy who makes ten million in his NBA career and wants to know that he will financially secure based just on his NBA career (i.e. he doesn't have to work a day the rest of his life).
10 million
- 5million (taxes/agents/etc)
- 4 million (for the rest of his life he'll be able to spend 200k)
= 1 million to spend extra (that's not a lot of money when you throw a benz or two and a gargantaun house in the picture)

Now I'm not crying crocodile tears: in the scenario above the player is really set for life (i.e. 200k a year) but just imagine you throw in a divorce, child custody, a big house for mom in there and bam your financial securit of 200k/year goes away pretty quickly

This is true, except all a player would have to do find tax shelters for their money, like 401k's. Even if you factor in all those taxes, there's no reason for an NBA player to up and buy their mom or friends houses if they did any research at all WRT what they can afford.

[Tragedy]

Originally Posted by Pioneer10

I don't think these guys realize when they got there contract how much they'll actually take back.
The Feds will take close to 37%
The state will come in and then get anything from 0-9% on top of that.
There are special athlete taxes in certain juridictions so they're goes another percentage
Then you got to pay your agent what 5%???? and I'm sure that not based on net income after taxes but gross income

So out of that 5 million dollar contract, the amount you get back is probably close to or less then 50% - 2.5 million to take home. Now an easy estimate on how much once your career is OVER you probably will get back in terms of income from your assets is about 5%. So to bring in $200k to live off when you retire you'd need about 4 million in the bank.

So let's run the numbers on a guy who makes ten million in his NBA career and wants to know that he will financially secure based just on his NBA career (i.e. he doesn't have to work a day the rest of his life).
10 million
- 5million (taxes/agents/etc)
- 4 million (for the rest of his life he'll be able to spend 200k)
= 1 million to spend extra (that's not a lot of money when you throw a benz or two and a gargantaun house in the picture)

Now I'm not crying crocodile tears: in the scenario above the player is really set for life (i.e. 200k a year) but just imagine you throw in a divorce, child custody, a big house for mom in there and bam your financial securit of 200k/year goes away pretty quickly

In New York City, 5 mil a year comes out to a little over 2.3 million.

96 grand a week, 33k to the fed, 6k to SS, 1.4k Medicare, 7k to the State and 3.8k to the city. No wonder players opt to live in NJ, they save nearly 2k more a week. - 44grand a week in NYC

That same 5mil in florida comes out to 55k a week.

Sure, to everyone here they'll still act like players shouldn't complain, but imagine forking over more than half of your pay in taxes.

[Geaux Tigers]

This thread has convinced me to become a Democrat! Let's tax all these jokers even more!

[Tragedy]

It's not the athletes. It's the CEOs.

At least with athletes, all the money they get is tied directly to revenue.

So if the NBA had a bad year, all deals the next season would be lowered.

With CEOs, the company can still lose a tremendous amount of money, fire thousands of workers, but make millions in bonuses.

[Pioneer10]

Originally Posted by EHL

This is true, except all a player would have to do find tax shelters for their money, like 401k's. Even if you factor in all those taxes, there's no reason for an NBA player to up and buy their mom or friends houses if they did any research at all WRT what they can afford.

401k are maxed out 15k, set up Keough or something else that and that's maxed out around 30k a year. Those shelters aren't going to do squat when you take in millions in salary .
Unfortunately these guys aren't like hedge fund managers, executives who get paid with different compensations such as certain stock options and proceeds off gains: that type of income is taken out at capital gains rates which are much lower then straight federal income tax. Unfortuantely or fortunately based on your perspective, these NBA players make there money on payroll.

"Tax shelters" for NBA players would be ways to keep capital gains low on money invested. But that money which is placed in investments is coming from net after taxes

[Pioneer10]

Originally Posted by HB

Thats a whole lot of taxes Pioneer has up there

I now pay more in taxes then what I made in total with my first job after school. Taxes happen and are going to happen so I don't worry too much about: you have to live below your means and you'll be fine.

Now I don't have to pay agents or a posse either so that helps. Anyone have an idea what agent fees typically are? I guessed 5% in my previous post but that's a blind guess.

[kidd2rj]

whether you are an nba player, ceo, or just a normal blue collar worker, there has to me some sort of personal responsibility. i really have no sympathy for those players that blow through millions because they bought bentleys and mansions for their posse. why you buy houses or cars for your 'boys' is beyond me anyway. it is true as someone else said that a CEO or businessman can sustain a lifestyle whereas these athletes have a windfall for a few years. that just means the onus is on them even more to make sure it lasts them their lifetime. that shouldn't be a hard thing to do.

one last note, former giants QB dave brown lives in an upscale neighborhood near me. he wasn't a huge star in the nfl and only played 9 years but he seems to have no trouble maintaining his lifestyle. just be smart about it

[HKF]

Agent fees on all NBA related contracts are capped at 3%. All endorsements deals believe it or not, have to be negotiated percentage wise, so an agent conceivably could take 50% commission if they wanted to. I do know that Wasserman has been known to take 15% depending on a particular client (like Coca-Cola).