ALL BALL NERVE CENTER — Making it to the NBA is usually not only the culmination of a lifetime of hard work, it can also be something of a financial jackpot. Which then opens the Pandora’s Box of, How do you deal with becoming rich beyond your wildest dreams, overnight?
The problems with professional athletes holding on to their new-found wealth has been well-documented. But one method for dealing with this seems to be adhering to a strict budget, at least early in your career. There’s an interesting profile of 76ers rookie Michael Carter-Williams in the Philadelphia Inquirer which not only details his family background, but explains how his family has set up his financial arrangements early on…
Nowadays, Carter-Zegarowski and her best friend, Tracie Tracy, are running his management team. They are taking a proactive approach to make sure he doesn’t spend all his money in a couple of years.
His rookie contract guarantees him $4.5 million over his first two seasons. He could make a total of $10 million if the Sixers pick up the final two seasons of his contract.
But his salary is deposited into a trust he can’t touch for three years. Carter-Williams is living off endorsement deals with Nike and Panini trading cards.
That’s just one of the benefits of having caring parents.
This isn’t exactly a novel concept: Shaquille O’Neal has said repeatedly that he never cashed his NBA checks and instead lived off his endorsement deals. When Brandon Jennings was a rookie in Milwaukee, instead of splurging on a luxury car, he went for a more economical Ford. It may not be the most exciting lifestyle, but in the long run, perhaps it’s the wisest way to go.