Tyler Ennis released by Los Angeles Lakers

[Oráiste]

First, I really hope our staff and program is setting up all of our former players who play professionally with trustworthy, smart financial teams to help them with their new money.

I'm not sure I follow when you say Tyler doesn't have time when it comes to compounding interest. I'm in the finance field and judging by your post you are well read on this but Tyler has nothing but time. It doesn't take that high of a savings rate with his income and age profile to give him a sizable cushion later on in life.

Let's say he saves just 4% (which some people won't even notice missing from their paycheck) of the $7.5M from years 1-4 + 2 years of $1.6M so 2 years from now of his $10.7M in earnings he has "just" $420k invested/saved from his NBA contracts. Throw it in the S&P index and hope it conservatively compounds at 8% on an annualized basis the next 20 years. He'll be in his early 40's with ~$2 million in the bank and that doesn't count any money he's earned from the time he is 23 years old and on. If he doesn't touch it until he's in his early 50's it grows to $4.3M and $9.3M in his early 60's.

Tyler can still go back and get his degree and upon graduating have plenty of connections to get a fine job and live upper middle class. Personally, I would be shocked if he didn't end up a coach right after he hangs them up.

staying on a roster for 3 years is a big deal. 3 years qualifies you for the NBA pension plan. He'll get $57K per year upon retirement and that number increases (to a max of about $200K) for every year he stays in the NBA.

plus, the NBA has an outstanding 401(k) option. What is your company's matching contribution? 33%? 50%? The NBA matches 140% of a player's contribution. Sticking with your 4% example above (which total is not correct because his 4th year option was not exercised, but the numbers are convenient and this is just an example), putting $420,000 into the league sponsored 401(k) turns into a sweet $1,008,000 total.

 

[orangefog]

staying on a roster for 3 years is a big deal. 3 years qualifies you for the NBA pension plan. He'll get $57K per year upon retirement and that number increases (to a max of about $200K) for every year he stays in the NBA.

plus, the NBA has an outstanding 401(k) option. What is your company's matching contribution? 33%? 50%? The NBA matches 140% of a player's contribution. Sticking with your 4% example above (which total is not correct because his 4th year option was not exercised, but the numbers are convenient and this is just an example), putting $420,000 into the league sponsored 401(k) turns into a sweet $1,008,000 total.

Great info. I knew I should have been in the NBA.

 

[Briancuse]

staying on a roster for 3 years is a big deal. 3 years qualifies you for the NBA pension plan. He'll get $57K per year upon retirement and that number increases (to a max of about $200K) for every year he stays in the NBA.

plus, the NBA has an outstanding 401(k) option. What is your company's matching contribution? 33%? 50%? The NBA matches 140% of a player's contribution. Sticking with your 4% example above (which total is not correct because his 4th year option was not exercised, but the numbers are convenient and this is just an example), putting $420,000 into the league sponsored 401(k) turns into a sweet $1,008,000 total.

No one is saying it isn't, getting to the Nba is great, but these big time college players don't turn pro saying " I really hope I can just make a roster, stick around for a few years and get a pension".

 

[OttoinGrotto]

No one is saying it isn't, getting to the Nba is great, but these big time college players don't turn pro saying " I really hope I can just make a roster, stick around for a few years and get a pension".

Yeah, and a lot of kids grow up wanting to be astronauts and end up selling cars.

 

[Knicks411]

Dion also just signed a $52 million deal, so i think he's doing ok

 

[HOFCeluck]

Once Briancuse arrived this the definitely went places.

 

[Oráiste]

No one is saying it isn't, getting to the Nba is great, but these big time college players don't turn pro saying " I really hope I can just make a roster, stick around for a few years and get a pension".

no, but a lot of them are a lot more knowledgeable and sophisticated than you think

 

[Briancuse]

no, but a lot of them are a lot more knowledgeable and sophisticated than you think

In terms of what?

 

[Oráiste]

In terms of what?

in terms of understanding the business of basketball

 

[Briancuse]

in terms of understanding the business of basketball

Im not saying they don't, these kids also have lofty goals for themselves as athletes.

 

[realorange]

What were the goalposts? He is making 1.5 mil on a bad team and barely playing, what has he accomplished?

He has made the NBA. Something that a small fraction of all basketball players ever do. I call that a great accomplishment.

 

[721Comstock]

What were the goalposts? He is making 1.5 mil on a bad team and barely playing, what has he accomplished?

Uh - MAKING $1.5 MILLION? I'd say that's an accomplishment - especially after the coin he already made prior.

You know how long it'll take the typical SU grad to make that kinda coin?
DECADES.

Oh yeah, and Tyler doesn't have 6-figures worth of student loan debt to pay off either.

dude is a total flop. shoulda stayed all 4 years.

 

[CusefanATL]

Dion also just signed a $52 million deal, so i think he's doing ok

For heavens sakes dude...

I hope Ennis signs a 500 million deal.

 

[CusefanATL]

staying on a roster for 3 years is a big deal. 3 years qualifies you for the NBA pension plan. He'll get $57K per year upon retirement and that number increases (to a max of about $200K) for every year he stays in the NBA.

plus, the NBA has an outstanding 401(k) option. What is your company's matching contribution? 33%? 50%? The NBA matches 140% of a player's contribution. Sticking with your 4% example above (which total is not correct because his 4th year option was not exercised, but the numbers are convenient and this is just an example), putting $420,000 into the league sponsored 401(k) turns into a sweet $1,008,000 total.

the pension is half of that if taken out at FIFTY.

the 401k gets blitzed if taken out before 59.5. And your 401k matching calcs are also dead wrong. I'll leave that to you to figure out but its basic personal finance and retirement 101.

actually I'll jsut tell you - for anyone under 50, the max you can defer in your 401k is currently 18k. It was 17k but we'll just keep it at 18k per year. Even if Kobe Bryant maxed his out, it $360k (again, it certainly less because the max was recently increased) that would have been matched. I would hope 100% would take advantage of maxing it out every year no matter their NBA income - but Ennis would have only gotten 140% of $54k so far.

This is exactly the psychological stuff that regular joes like us dont have to understand about working a job that goes from making 1.5 million to a possible 30k the next if he goes d-league.

 

[CusefanATL]

How can you call something a trend if you don't know the general percentages?

That's like saying "Syracuse isn't shooting 60% from 3 each of the last 10 years. This is a disturbing trend."

Do other teams shoot 60%? Did Syracuse shoot this before?

whatever man... wrong words, wrong context. the point is since Melo - not 1 players from syracuse has outright earned a decent 2nd deal. Not a single 1.

 

[djcon57]

whatever man... wrong words, wrong context. the point is since Melo - not 1 players from syracuse has outright earned a decent 2nd deal. Not a single 1.

How many draft picks do you think get these 2nd deal extensions a year? If you had to take a guess...

 

[CusefanATL]

How many draft picks do you think get these 2nd deal extensions a year? If you had to take a guess...

Too complicated to answer. A lot more top end picks do than bottom end. But we've had a mix bag. going o/3 on 3 top 6 picks is pretty bad. But Dion and Wes should be set for life after earning nicer contracts in their 1 and dones.

as far as the other 7 they range from 11(mcw) to late 20's - significantly less. but i would guess at least 25%. 0/7 would be a trend against 25% IMO.

 

[Knicks411]

whatever man... wrong words, wrong context. the point is since Melo - not 1 players from syracuse has outright earned a decent 2nd deal. Not a single 1.

My only point on Dion was that his second deal wasn't great, but it was for one year and the next year he got $50 million, so not sure he really fits what you're going for

 

[OttoinGrotto]

the pension is half of that if taken out at FIFTY.

the 401k gets blitzed if taken out before 59.5. And your 401k matching calcs are also dead wrong. I'll leave that to you to figure out but its basic personal finance and retirement 101.

actually I'll jsut tell you - for anyone under 50, the max you can defer in your 401k is currently 18k. It was 17k but we'll just keep it at 18k per year. Even if Kobe Bryant maxed his out, it $360k (again, it certainly less because the max was recently increased) that would have been matched. I would hope 100% would take advantage of maxing it out every year no matter their NBA income - but Ennis would have only gotten 140% of $54k so far.

This is exactly the psychological stuff that regular joes like us dont have to understand about working a job that goes from making 1.5 million to a possible 30k the next if he goes d-league.

You feel passionately about this subject, but I have zero concept of what you think the solution is. Guys just have to sign crazy contracts? Like, what exactly is the endgame here?

 

[HOFCeluck]

Using Dion Waiters to push some weird second contract narrative is funny.

 

[CusefanATL]

My only point on Dion was that his second deal wasn't great, but it was for one year and the next year he got $50 million, so not sure he really fits what you're going for

Anyone can earn their way out of the bad deal. Dion was the safest of them all but he was on the verge of min deals or out of league without that 30 game explosion.

 

[Cusefan0307]

I don't understand this at risk at being out of the league discussion. The NBA pension plan is terrific and people assume these guys automatically are not capable of doing anything else.

I don't get how some of our fans will be satisfied with our NBA players. Melo has had a great career besides winning a title and it's still not enough for everyone here and he won us a title.

 

[CusefanATL]

You feel passionately about this subject, but I have zero concept of what you think the solution is. Guys just have to sign crazy contracts? Like, what exactly is the endgame here?

Well it started saying that it's a bad deal especially considering the team option. And unfortunately it's only better than going d League right away. Which is true.

Then people just started attacking the post and the responding posts so it kind of morphed. The fact is while we don't have a problem getting players drafted, we do have a possible problem with players earning 2nd deals.

 

[djcon57]

Well it started saying that it's a bad deal especially considering the team option. And unfortunately it's only better than going d League right away. Which is true.

Then people just started attacking the post and the responding posts so it kind of morphed. The fact is while we don't have a problem getting players drafted, we do have a possible problem with players earning 2nd deals.

As compared to whom? Other schools? Players drafted as a whole? This is what I'm getting at.

Is it a problem or just NBA reality?

 

[OrangeDW]

Anyone can earn their way out of the bad deal. Dion was the safest of them all but he was on the verge of min deals or out of league without that 30 game explosion.

I don't agree with that. He's gotten big minutes every single year of his career, including on the championship contending OKC so I don't think he's been in any danger of being out of the league.

I do think he hit some bad luck on the timing of everything when he was a free agent last summer. Seems like he was expecting to be back in OKC, and then Durant leaving threw everything into the air and by then a lot of guys had already signed and there weren't many options left.