Congratulations, Malachi! And behind Door #22, heeere's

[NYCSUGrad]

He's going to net less than half of that, and he is going to live a more expensive lifestyle than most people on the board; just the cost of all the travel, eating out all the time, being expected to dress a certain way. Buy a house and a car and it's gone. A guy who earns $50K for 20 years is going to probably net more money.

You deduct travel expenses including meals. Plus on the road the team pays for travel and you get a meal allowance. As long as you don't order filet mignon and lobster tails every night you'll be fine.

Also, with the way rookie and young players move to and from the D league, NO ONE WITH A BRAIN buys a house. You rent a reasonably nice 2 bedroom apartment, furnished, in a safe neighborhood, for maybe up to 3 or 4 grand a month depending where your team is located. If you want to cut costs you get a 3 bedroom and share with a teammate who's not married, no kids living with him. MAYBE you put money down on a house in a safe area for your parents.

Look at MCW and how he and his mom manage his money so VERY FRUGALLY, even though IIRC h went pretty high in the draft. It can be done.

 

[NYCSUGrad]

Well, I think he should hire a very good financial planner!

MCW's mom perhaps?

 

[NYCSUGrad]

$1M over a two year period is what he's going to net, so how is he going to save all that? And where can you get 5% interest these days?

Holy moly, Matt, I guess my cousin with the same name got both your shares of the "optimism and sweetness and light" genes handed out to all dudes named Matt.

Sorry about that.

 

[bozophobe]

Regarding MCW, people are still forgtting that his playing salary is put into a trust until he's 25, and he's living off of various endorsement streams - which alone provides a nicer annual income than I'll ever know.

I can make Malachi double his 2017-2018 money right now, without having had to risk his stock dropping by coming back next year (the trend of global player movement will only increase overall).

Smile more.

And he will the first time his agent promises him $2,500 for a one sentence recorded line for a regional taco chain. Ad people love personable athletes. He'll collect from basketball cards. Cameo appearances on sitcoms, maybe. Apparel royalties. A free $40,000 car for 3 hours of taping for a central CA auto dealership. And any sneaker or candy bar ads on the national level will bring his endorsement deals up to player salary level. That's less likely, but who knows?

Even then, he could blow it all, sure. So what?

 

[NYCSUGrad]

i think you are underestimating the ability to spend the $1 mil he is about to net by a long shot.

Why? Did his time as an SU student and player leave you with the impression that he's inordinately stupid

We're not talking Fab Melo and Chuck's here.

 

[djcon57]

Do you understand how much a cab from the airport to your apartment costs? Now pay that $50 or whatever every few days.

Since we're crunching numbers here...You do know NBA has per diem on top of their contracts to cover food, travel, etc, right?

 

[NYCSUGrad]

Top federal rate of 39%, top California rate of 13%, plus agent fees and NBA union dues/contribution to retirement plan. Then the cost of living.

Top federal rate of 39%, top California rate of 13%, plus agent fees and NBA union dues/contribution to retirement plan. Then the cost of living.

State taxes are deductible on your federal taxes. U
So are agents' fees, unless they just get the fee off the top, before Mal even SEES the $, so it's not even FIGURED into his income. Union dues - not sure. Mine were only $16 a paycheck so I didn't pay attention come tax time when my accountant filed for me.

I really hope YOU aren't an accountant, Ithaca Matt.

 

[CusefanATL]

Why? Did his time as an SU student and player leave you with the impression that he's inordinately stupid

We're not talking Fab Melo and Chuck's here.

That's your response to that?

A. I didnt even call out Mali. I specifically said "THE ability" as opposed to "his ability" - it would be very tough for me to bring home $1 mil net in 2 years and call it "set for life money" I at least have the benefit of making decent money for 40 years. Not in 5-10 years and then trying to fit into a $50k a year job.

 

[Fly Rodder]

Malachi will make more in his first two years than I will in 30 years with my 4-year degree.

Some people have a hard time with math.

 

[cuse2013]

You're forgetting taxes and agents fees. Plus I believe the nba takes a piece for retirement fund and union fees. In the end he's well under a million a year. Unless he makes a Second contract this isn't looking like a smart move.

There are no agent fees on a rookie contract.

Even if he flames out, he will easily make $100K+ every year in Europe until he decides to retire. Not bad

 

[Briancuse]

There are no agent fees on a rookie contract.

Even if he flames out, he will easily make $100K+ every year in Europe until he decides to retire. Not bad

Then how do they pay their agents? I doubt any of the kids who were drafted last night, are thinking about playing in Europe.

 

[MSOrange]

Then how do they pay their agents? I doubt any of the kids who were drafted last night, are thinking about playing in Europe.

2016 NBA Draft 1st Round Rookie Salary Projections

"While there has long been an argument that sports agents provide little value for NBA rookies in terms of their contract, a good agent can insure that a player signs a max 120% deal and that the team has incentive to pick up his third and fourth years. These agents also invest heavily into their clients draft preparation, but do not receive a commission on their rookie contracts, even if their client signs a for the full 120%. Thus, agents rely on commissions from marketing deals the close their clients (usually 20%), as well as building equity to insure they’re around to negotiate the rookie’s second contract."

 

[OttoinGrotto]

Since we're crunching numbers here...You do know NBA has per diem on top of their contracts to cover food, travel, etc, right?

Only if you stay in college for at least two years and are a lottery pick tho

 

[OttoinGrotto]

2016 NBA Draft 1st Round Rookie Salary Projections

"While there has long been an argument that sports agents provide little value for NBA rookies in terms of their contract, a good agent can insure that a player signs a max 120% deal and that the team has incentive to pick up his third and fourth years. These agents also invest heavily into their clients draft preparation, but do not receive a commission on their rookie contracts, even if their client signs a for the full 120%. Thus, agents rely on commissions from marketing deals the close their clients (usually 20%), as well as building equity to insure they’re around to negotiate the rookie’s second contract."

LIES

 

[NYCSUGrad]

LIES

What makes you say that article is full of lies?

 

[Flacusian]

I very happy for Malachi and it is an astounding accomplishment to make it into the league after one year of college. It's the dream of countless kids across the country to be a one and done and hear their name called on NBA draft day as the cameras all focus on them and the announcers read a narrative of how you got there...

That having been said, and with the caveat that I'm not saying Malachi should have done this:

He could have had his cake and eaten it too. As was pointed out by previous posters in this thread the money is significantly higher for kids who go in the top flight of the draft. Syracuse, arguably would have been poised as a legitimate threat as a team vying for the National Championship this coming season if Malachi had returned to Syracuse.

Regardless as to whether we won a Natty or not, the fact that Malachi would have been a massive press darling of ESPN as well as the star of the Syracuse team and would have looked forward to becoming one of the premier players Nationally. As such it wouldn't be a stretch to think he could have become a lotto pick and gone in the top 10, perhaps even top 5 or so in the draft. If that were to happen he would immediately make up for the cash not earned in this coming year as a #22 pick and would be entering the league as even more of a household name.

Not to mention that he would have that shot of doing what so few players can claim that they have done. Lead their team to a National Championship. Almost to a man, players who left early share the fact that they do regret to varying degrees, (no pun intended) having missed out on the college experience that they found to be one of the most fulfilling and exciting periods of their careers and lives. Melo even says as much.

Ok... in an effort to fend off all who might think this is hooey...I'm not slighting Malachi in the slightest for his decision. It's his alone to make. And I know all of the arguments...he might get injured... his stock might actually go down... All of which contains some semblance of truth.

But speaking for myself... my college days were certainly a wonderful chapter in my life and the thought of having missed out on even one year of what was so memorable is something I would not have wanted to happen. I know that if it were me... I would forever wonder about "what coulda been" had I returned for one more year in pursuit of a Natty. Some things money can't buy. And as I pointed out... chances are significant that he wouldn't have missed out on even a nickel... it just would have delayed getting it one year not to mention the chance that he might have even ended up in a more coveted position ... of having been a Syracuse Idol for life... enter the league with significantly more hoopla.

Just sayin...:noidea:

 

[alphaorange]

I live in a $40k home in East Brady, PA so I guess I'm just really out of my depth here.

Is it rollin' on dubs?

 

[alphaorange]

And if he waited and went top-10 next year he could have more than made back his investment in the first year.

And if he stumbled and fell out of the draft? Everyone seems to feel he is destined to bomb. He feel he will be at least a journyeman. Very few guys don't get their second contract unless they really are not NBA material, and if he isn't he would have been exposed in year 2 at SU. Besides,unles he is really just not good, he can play in Europe as others have suggested. To suggest he isn't good enough for that is beyond ludicrous. I would love to see this thread brought back to life at the end of his 2nd NBA season.

 

[TheCusian]

Yes, this will change his life in the short term, but it's like those people who win $1M in the lottery, quit their jobs, take a vacation, give gifts to friends and family, and BOOM, they're broke a couple years later.

This is awfully close to making a character judgement. Why do people assume he's going to blow his money or that it's going to be one contract?

It's def not any of our business and unless we can tell the future or know this kid like a psychologist might - speculation reflects poorly on those making the judgement. Again - not enough info to have an informed opinion.

How many points does he average in summer league? Will he crack the starting rotation in Sac?

 

[Shrmdougluvr]

"Mom, Dad ... I am just calling to let you know that I just got offered my dream job. Admittedly, many careers don't last long in the field, but it pays $1.1 m the first year and $1.2 m the second. But if i do well, the salary could go up exponentially and i could net tens of millions. I'm going to take it i think."

"Well son, your mom/dad and I really think its best for you to spend the next three years at Syracuse earning your degree in communication and rhetorical studies."

This conversation occurred never because mom/dad would have to be stupid to say such a thing.

 

[bozophobe]

 

[OttoinGrotto]

What makes you say that article is full of lies?

I was joking.

 

[SU2NASA]

And if he stumbled and fell out of the draft? Everyone seems to feel he is destined to bomb. He feel he will be at least a journyeman. Very few guys don't get their second contract unless they really are not NBA material, and if he isn't he would have been exposed in year 2 at SU. Besides,unles he is really just not good, he can play in Europe as others have suggested. To suggest he isn't good enough for that is beyond ludicrous. I would love to see this thread brought back to life at the end of his 2nd NBA season.

Isn't my post the exact opposite of expecting him to bomb?

I think he'll be successful and that the decision he made isn't as lucrative as it could have been.

 

[alphaorange]

Isn't my post the exact opposite of expecting him to bomb?

I think he'll be successful and that the decision he made isn't as lucrative as it could have been.

I guess my point (and not directed at you) is that he apparently weighed factors such as his probable production next year, the depth of next years draft (which LOOKS to be extremely deep), and the possibility of having an injury or sub-par year, against the odds of getting a first round call, which from what a few insiders have said, is what he was looking for. People analysing his decision based on facial expressions at the draft, or on a financial analysis of his future based on an assumed 2 year pro career with no outside sources of income is absurd. No matter what happens, it appears he made the right choice and I wish him well.

 

[Briancuse]

I guess my point (and not directed at you) is that he apparently weighed factors such as his probable production next year, the depth of next years draft (which LOOKS to be extremely deep), and the possibility of having an injury or sub-par year, against the odds of getting a first round call, which from what a few insiders have said, is what he was looking for. People analysing his decision based on facial expressions at the draft, or on a financial analysis of his future based on an assumed 2 year pro career with no outside sources of income is absurd. No matter what happens, it appears he made the right choice and I wish him well.

That is all fine, but we aren't going to know for sure if he made the right decision until a few years from now.