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

[IthacaMatt]

First Year
$1,159,300

Second Year
$1,211,400

 

[DoctorBombay]

First Year
$1,159,300

Second Year
$1,211,400

But but but...if he'd stayed we'd be a top ten team!!! That's what REALLY matters!

 

[Toga]

First Year
$1,159,300

Second Year
$1,211,400

How much was Memphis at #17?

 

[creatorsgam]

But but but...if he'd stayed we'd be a top ten team!!! That's what REALLY matters!

Finally. Someone gets it.

 

[skurey]

Well that one poster makes 200k a year so Malachi is an idiot.

 

[Briancuse]

Well that one poster makes 200k a year so Malachi is an idiot.

I will just say this, if your goal is to make more money than me, than you have a pretty low bar.

 

[OttoinGrotto]

First Year
$1,159,300

Second Year
$1,211,400

Yeah but after taxes and agent fees it isn't that much.

 

[IthacaMatt]

Yeah but after taxes and agent fees it isn't that much.

Not for a lifetime, no, it's not. It's a great living for now, but that's not life changing money.

Trying not to sound like a hater, but going in the lottery is double the money or more depending on how high you go.

For comparison:

This year's 4th pick (Dion went 4th, so did Wes Johnson): 4 $3,563,600 $3,724,000 $3,884,400

This year's 6th pick: (Jonny Flynn's spot) - 6 $2,931,000 $3,062,900 $3,194,800

 

[OttoinGrotto]

Not for a lifetime, no, it's not. It's a great living for now, but that's not life changing money.

Trying not to sound like a hater, but going in the lottery is double the money or more depending on how high you go.

If making over a million two consecutive years isn't life changing, that money has been massively mismanaged.

 

[IthacaMatt]

How much was Memphis at #17?

17 $1,494,800 $1,562,000 $1,629,300

 

[IthacaMatt]

If making over a million two consecutive years isn't life changing, that money has been massively mismanaged.

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.

 

[OttoinGrotto]

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.

Right, so we agree that if that happens the money has been mismanaged.

 

[IthacaMatt]

17 $1,494,800 $1,562,000 $1,629,300

For comparison:

This year's 4th pick (Dion went 4th, so did Wes Johnson): 4 $3,563,600 $3,724,000 $3,884,400

This year's 6th pick: (Jonny Flynn's spot) - 6 $2,931,000 $3,062,900 $3,194,800

Right, so we agree that if that happens the money has been mismanaged.

Do you understand the cost of living in a major league city? Do you understand the cost of a nice apartment in most cities? Do you understand how much a cab from the airport to your apartment costs? Now pay that $50 or whatever every few days.

It has nothing to do with "mismanagement" and everything to do with living a more expensive cost of living.

 

[br801]

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.

Hell, someone needs to start a GoFundMe page for the kid.

 

[OttoinGrotto]

Do you understand the cost of living in a major league city? Do you understand the cost of a nice apartment in most cities? Do you understand how much a cab from the airport to your apartment costs? Now pay that $50 or whatever every few days.

It has nothing to do with "mismanagement" and everything to do with living a more expensive cost of living.

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

 

[cuseinchina]

The point people are making is that he's going to get a lot of money in a short period of time. During that period of time his lifestyle will be by default more expensive than a normal 20 year old kid, even if he's careful. So lets say he spends $125k a year, does not buy a house, and does not get a second contract. The rest goes in a balanced stock and bond portfolio. Maybe he saves $1m over the 2 year period. If you can get 5% interest on that over time you are doing well. assuming he draws down that money to live on he can take out $50k/ year on average without dipping into the original savings. So he can live like a primary school teacher for the rest of his life. Not exactly the big money dream people think of. So that seems not that impressive. On the other hadn, if he busts in the NBA he can probably go make $150k a year in Europe for the next 15 years. and the team covers his house, insurance, travel etc. Lets say he spends every cent of his income but not the nba savings. When he's done he'll have $4m. He can invest more aggressively since he has more and can draw down something like $250k/year and retire at age 35. So his reality, if he's smart and busts in the nba, is pretty darn good.

That said that same $250k and retire at 36 would feel a lot better with a ncaa championship to remember. No one cares what these guys do in the nba. college fans remember you forever, especially at Syracuse. So, everyone is right .

 

[Orangeman13]

I make approximately $105,000 a year before taxes as a clinical psychologist focusing in adolescent psychopathology and family therapy. Malpractice insurance is VERY low and I don't have to pay an agent, worry abou injuries etc.

I also live in a suburb of Cincinnati Ohio so cost of living is low.

Syracuse set me up better than Mali.

Thanks SU!

 

[Cusefan78]

The point people are making is that he's going to get a lot of money in a short period of time. During that period of time his lifestyle will be by default more expensive than a normal 20 year old kid, even if he's careful. So lets say he spends $125k a year, does not buy a house, and does not get a second contract. The rest goes in a balanced stock and bond portfolio. Maybe he saves $1m over the 2 year period. If you can get 5% interest on that over time you are doing well. assuming he draws down that money to live on he can take out $50k/ year on average without dipping into the original savings. So he can live like a primary school teacher for the rest of his life. Not exactly the big money dream people think of. So that seems not that impressive. On the other hadn, if he busts in the NBA he can probably go make $150k a year in Europe for the next 15 years. and the team covers his house, insurance, travel etc. Lets say he spends every cent of his income but not the nba savings. When he's done he'll have $4m. He can invest more aggressively since he has more and can draw down something like $250k/year and retire at age 35. So his reality, if he's smart and busts in the nba, is pretty darn good.

That said that same $250k and retire at 36 would feel a lot better with a ncaa championship to remember. No one cares what these guys do in the nba. college fans remember you forever, especially at Syracuse. So, everyone is right .

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.

 

[SaltLakeOrange]

If making over a million two consecutive years isn't life changing, that money has been massively mismanaged.

Untrue. A million isn't a lot when you're talking cost of living in CA. Taxes will take about $450K of the money. He needs to put away almost all the rest in a retirement account and get some endorsements. If he doesn't get any endorsements, the first years cash will be gone when he buys himself and his parents a house.

 

[pfister1]

Untrue. A million isn't a lot when you're talking cost of living in CA. Taxes will take about $450K of the money. He needs to put away almost all the rest in a retirement account and get some endorsements. If he doesn't get any endorsements, the first years cash will be gone when he buys himself and his parents a house.

Maybe he shouldn't buy himself and his parents a house . Maybe he should rent an apartment and allow his parents to continue to live off of the jobs that have provided for them thus far. If he takes the view that he is entitled to a certain NBA lifestyle now that he has entered the NBA rather than taking the view that he is entitled to what he can afford, he will have problems living on what he is about to earn.

 

[Shenexon]

The kid just got selected as one of the top 22 young basketball players of 2016. He's going to make over $1,000,000 to start and is a nice success story. Well played Malachi...best wishes!!

 

[IthacaMatt]

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

You're probably being sarcastic, but rent in any big city is going to set him back $2500-5000/month. What's your mortgage payment, about $400?

 

[IthacaMatt]

The point people are making is that he's going to get a lot of money in a short period of time. During that period of time his lifestyle will be by default more expensive than a normal 20 year old kid, even if he's careful. So lets say he spends $125k a year, does not buy a house, and does not get a second contract. The rest goes in a balanced stock and bond portfolio. Maybe he saves $1m over the 2 year period. If you can get 5% interest on that over time you are doing well. assuming he draws down that money to live on he can take out $50k/ year on average without dipping into the original savings. So he can live like a primary school teacher for the rest of his life. Not exactly the big money dream people think of. So that seems not that impressive. On the other hadn, if he busts in the NBA he can probably go make $150k a year in Europe for the next 15 years. and the team covers his house, insurance, travel etc. Lets say he spends every cent of his income but not the nba savings. When he's done he'll have $4m. He can invest more aggressively since he has more and can draw down something like $250k/year and retire at age 35. So his reality, if he's smart and busts in the nba, is pretty darn good.

That said that same $250k and retire at 36 would feel a lot better with a ncaa championship to remember. No one cares what these guys do in the nba. college fans remember you forever, especially at Syracuse. So, everyone is right .

$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?

 

[upperdeck]

if he lives like most of us then yes he has a nice start on life.. if he lives like a big city person with a nice APT and car then he has a decent nest egg. if he buys his family nice things then he has good jump start on life.. the key is getting the next contract.

if he goes top 10 then the numbers show he can do most of the nice things and still have a great amount put away.

 

[bozophobe]

A house isn't wasted money. That's recoverable equity. And unless there's another housing crash (not too likely in the Sacramento area and many others), he could even gain a nice profit. The pension fund contribution could pay off later, too.