Posted on 12/03/2013 2:53:04 PM PST by SeekAndFind
A rookie NBA player for the Philadelphia 76ers is being lauded for his financial prowess in putting his salary in a trust that he can't touch for three years, possibly avoiding the fate of a famous basketball player who donned the same jersey and now can't pay child support.
Drafted 11th overall in the 2013 NBA Draft, Michael Carter-Williams, 22, is guaranteed $4.5 million over his first two seasons, but some of his salary is being put into a trust he can't touch for three years, the Philadelphia Inquirer reported. In the meantime, he is living off his endorsement deals with Nike and Panini trading cards, the newspaper said.
A trust is probably something that one of the most famous 76ers, Allen Iverson, could have used. A "Sixer" from 1996 to 2006 then 2009 to 2010, Iverson said this year that he is broke and can't pay child support. The ex-wife of the 36-year-old former Georgetown University player demanded that he put over a million dollars into a trust fund for child support.
(Excerpt) Read more at abcnews.go.com ...
This young man is wise. I would have recommended a trust with some available in three years, some in six, and some in 9.
Smart kid. Parents looking out for him and he is smart enough to listen.
Smart move by Carter-Williams. I don’t know if the average citizen knows the speed by which many pro athletes spend their money. I remember reading a statement by one pro agent who said many of his players spent every cent they earned. And this was in the modern era of million dollar contracts for average players. And despite him strongly encouraging them to save some of their money. Many of the players are very present-oriented and think the cash spigot will flow forever. They have no concept of ten or twenty years down the road.
This kid sounds like a very smart one...one for whom I can have real respect.
They just might be better players with longer careers if they aren't so busy spending millions of dollars a year.
The league should have done this for their players long ago.
It should probably be longer that 3 years.
I always remember reading an interview in TV Guide with the comedian Flip Wilson (who had a bit of a smash tv show and then kind of faded off the scene) and he said that he was doing great financially and that he “never touched one penny of the principal”.
He grew up in Hamilton MA so its pretty safe to say he hasn’t got a posse from the ‘hood to take care of
Hope he doesn’t forget where he put it.
See something missing? I do.
No tats!!
I wouldn’t be as awkward with him approaching me on the street as I would Alan Iverson.
If it’s in a US trust for 3 + years it’s pretty much not going to be pierced.
If it’s in a Nevis Trust for 2+ years you’re homey free...
I worked with a former NFL player who showed similar wisdom. First, he did grow up in a single parent family. Yet, his degree was in engineering. He worked as a co-op at a local refinery. When he graduated, he signed on to an NFL contract, but did not make a mistake of “living large”. The money was put away and invested wisely. Two years later his NFL career ended due to injuries. He was back in the refinery, and eventually started a business specializing in plant instrumentation.
These are the pro athlete stories we hardly hear about.
Smart player. No sense spending all that money now.
Scary that some of these players are broke after making so much money.
Rod Smith, former WR of the Denver Broncos in their Super Bowl winning era, was pretty good with his money. He had a modest house and modest cars, and saved most of it while playing
Perhaps a good idea. But if he sires a half dozen bastard offspring by a similar number of women, he’ll still be in trouble down the road. That seems to be the financial downfall of a lot of pro athletes.
I have a theory that within 5-10 years of retirement, professional athletes end up in pretty much the same financial circumstances they would have been in if they had never signed a pro contract in the first place. The successful ones would have been successful anyway, and the bums end up where they were destined to be, too.
Good move by Carter-Williams. He probably comes from a more stable environment than most professional athletes. Not only do they not know how to manage the large incomes they make at 21-22 years of age, but their lives are full of leeches and hangers-on. Not unlike lottery winners.
Brad Benson ... he's more famous today than ever, as the owner of a major car dealership in central New Jersey that he opened back in his playing days
Bill Ard ... worked in the offseason as a broker at one of the big financial companies in New York City
Bart Oates ... real estate attorney
Chris Godfrey ... attorney, financial planner and founder of Life Athletes
Karl Nelson ... industrial engineer
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