◆ Once you lose the reverence for money, you are not far from losing money.
Correct answer bureau exhibit
How long will it take to spend 1 billion yuan?
In 2018, there was a movie called "The Richest Man in Xihong". In the film, Shen Teng played a Luthor, but the sky fell windfall, and his second grandfather left him an inheritance of up to 30 billion, but he had a condition for inheriting this inheritance: spend 1 billion in a month.
As a result, Shen Tengke tossed and turned to waste money, and the money was more and more...
However, this is not the case in reality.
For example, Allen Iverson, a former NBA "God of War" inducted into the Hall of Fame, is an example.
During his NBA career, he earned at least $250 million in salaries and endorsements, only to declare bankruptcy less than three years after retiring from the NBA.
It is said that he once lost his temper with his ex-wife, opened two of his pants pockets, and complained that he "can't even afford a hamburger now."
A report on Iverson's dilemma on the Forbes website
Some people call this the "NBA curse": players who make tens of millions of dollars a year can spend their savings in just a few years after retiring, and it is even said that 60% of players will eventually go bankrupt.
01
In the NBA, the million annual salary can only be regarded as a shame
Freedom of wealth may be everyone's dream.
But how much does it cost to achieve wealth freedom? One theory is that based on the annual yield of 8%, the minimum standard for domestic first-tier cities is 5 million, and the second- and third-tier cities and small towns are 3 million and 1.5 million, respectively.
But I think that number must be too low.
In the United States, financial columnist Suth Orman mentioned in a live broadcast that at least $5 million (about 35 million yuan) is needed to take early retirement.
One data shows that the per capita household income in the United States in 2018 was $31,500.
So, saving $5 million is very, very difficult for most Americans.
For NBA players, though, $5 million is just a piece of cake.
As the sports league with the highest average salary, the million annual salary of players in the NBA can only be regarded as a shame:
Only a player with little name or no potential will receive a "meager" salary of millions of dollars.
According to the data of sports Intelligence, the average salary of NBA players in 2018 was 7.77 million US dollars, far more than the Premier League, La Liga and other football leagues.
Like some of the big stars we know, the annual salary is basically starting at 20 million US dollars.
In 2018, the average annual salary of players in various clubs, the top 12 NBA occupied 8 seats
According to Tiger Basketball, Curry's current annual salary is $40.23 million (about 280 million yuan), and Paul, Westbrook, Durant, Harden and other popular stars have annual salaries of more than $30 million.
In the NBA, even slightly less popular players are not paid low, with more than 50 people earning more than $20 million a year.
Previously, after signing a four-year, $196 million contract with the Blazers, Lillard will receive an annual salary of $50.75 million in the 2023-2024 season, likely to become the first player in NBA history to break through the $50 million annual salary.
The income of NBA players is not only reflected in the salary, off-court income, such as endorsement fees, sponsorship fees, etc., and even higher than the annual salary.
For example, James.
According to Forbes, his income in 2018 was $88.7 million, compared to $35.7 million that year. In this calculation, the over-the-counter revenue is 53 million US dollars, which is 17.3 million US dollars (about 120 million yuan) higher than the on-site revenue.
James and Nike signed a lifetime contract
02
5 years after retirement, 60% of people will go bankrupt
However, under this sky-high income, it cannot hide a shocking fact:
According to the American "Sports Illustrated", about 60% of NBA players went bankrupt within 5 years of retirement, and even some people had to beg and steal.
In 2006, Vin Baker retired and earned a total of $105 million during his NBA career. This wealth is enough to allow the average American family to achieve wealth freedom for several generations. But within a few years, Baker was bankrupt.
Suddenly, Baker quit drinking and eventually got a job at Starbucks.
But as he says, the salary is several zeros less than when he was in the NBA.
Baker at Starbucks
Such an ending is not too bad.
There are also NBA players who have to go to jail because of bankruptcy.
Dennis Rodman, who earned $9 million a year in the 1996-1997 season, ranked 10th among NBA players. By the time he officially retired in 2006, he had earned nearly $30 million in a 14-year career.
However, in 2012, Rodman was exposed to bankruptcy and was also indicted for owing his ex-wife $51,000 in spousal support and $800,000 in child support for two children, and was eventually arrested and imprisoned.
Another example is the big brother Francis when Yao Ming first arrived in the NBA. With his help, Yao Ming quickly gained a foothold in the NBA.
Francis, on the other hand, also earned nearly 100 million yuan during his time as a player, in addition to a large amount of commercial income.
But a few years after retiring, he squandered his family property and was caught stealing from other people's cars worth just $7,000.
In the end, he was sentenced to conditional release and fined $300 for 50 hours of community service.
Yao Ming and his "Fu Boss"
Anthony Walker, who earned more than $100 million in his NBA career, also had a lot of business income in the early days.
But not long after retiring, he had no choice but to declare bankruptcy, and even the only champion ring was auctioned off by the bank.
Hundreds of millions of family properties have been accumulated, but in just a few years, hundreds of millions of dollars have been spent, but in the blink of an eye.
It can be said that its rise and fall are also bold, and its death is also sudden.
03
But there are also people who earn more every year after retiring
Of course, there are also NBA players who start well and end well, and even strike late.
Jordan and Kobe Bryant are two of them.
When the two played in the NBA, the salary was top notch. After retiring, the earning power is also the top among the players.
In 2010, Jordan spent $175 million to buy the Hornets, and according to the Forbes NBA team's 2019 value list, the Hornets had a market capitalization of $1.25 billion.
Not only that, Jordan receives more than $100 million in dividends from the sneakers he endorses every year, exceeding the net profit of 83.08% of A-share listed companies in 2018.
Jordan has brought the lawsuit to China, and only successful people can do it
Bryant once invested $6 million in a new sports drink, BodyArmor. After Coca-Cola took a stake in BodyArmor in 2018, the investment has earned more than $20 million.
In addition, in 2015, Kobe Bryant, Ali and Sina reached a tripartite cooperation to release the documentary "Muse", established Kobe's Chinese subsidiary, and also settled in Taobao to promote his personal brand KOBE.inc, and became an investor in Alibaba's Pre-IPO.
A business blueprint unfolds slowly.
Bryant's other identity: an investor
In addition to these two NBA stars, one is not obvious in the NBA and has only won more than a million dollars in his career, Junier Bridgeman, also shined, making $600 million after his retirement.
During his time playing, Bridgeman began running his side business, Wendy Hamburg.
Today, Wendy Burger is a well-known fast food chain in the United States.
At the end of his football career, he took the opportunity to set up a catering investment brand, Bridgeman Food Co., Ltd., officially entered the catering market, and increased investment in Wendy Burger, which increased the number of Wendy burger branches under his name from 5 to hundreds.
Wendy Hamburg store
He also invested in American restaurants , Chili's and "Blaze Pizza." The two restaurants later became his main co-brand, expanding from several to hundreds.
Bridgman currently has eight partner restaurant chains and runs a total of about 450 stores.
04
With Rolex, you also have to have luxury cars and luxury houses
The above three players who escaped the "NBA curse" probably have a few things in common: willing to learn, have the right view of money, walk in the field they know well, and finally achieve wealth appreciation.
And the bankrupt NBA players, on the other hand, are just the opposite.
McCollum, vice president of the NBA Players Union, said: "Of the 450 players in the NBA, 150 players are moonlighters. ”
There are two laws within the NBA: the Rolex rule and the veteran rule.
This is a manifestation of the NBA ecology and the trigger for the bankruptcy of players.
The Rolex rule means that players who have just entered the NBA usually buy a Rolex watch for twenty or thirty thousand dollars in order to treat themselves.
But then, they felt that in order to be worthy of Rolex watches, luxury goods such as famous cars, mansions, and private yachts were also indispensable.
The mansion has become a symbol of NBA players
The veteran rule means that new players in the NBA are easily affected by the luxurious life of their predecessors and thus become comparable.
For example, Baker once drove an old car to the stadium, only to be ridiculed by the other players, and angry Baker bought several luxury cars at once.
Therefore, no matter how diligent and frugal NBA players are initially, it is easy to become lavish under the high salary and comparison. At the same time, the high-pressure professional life also exacerbates this unbridled indulgence.
The aforementioned Baker, in the years after his retirement, lay on the dollar to spend: buying luxury cars and mansions, private yachts, frequent high-end places, alcoholism, and drug addiction, and finally sat on the mountain.
Then there's Antoine Walker, who made $108 million in revenue over an 11-year NBA career, also due to profligacy.
It is said that at most, he supported more than 70 relatives and friends, and their food, clothing, and housing were borne by Walker alone, which can be called "raising the whole village by one person".
In addition, Walker often went to Las Vegas to gamble money and spend thousands of dollars.
Walker (first from right) was generous to his relatives and friends
Ironically, in 1999, Walker signed a six-year, $71 million contract with the Celtics, and Celtics coach Rick told Walker: From now on, you never have to worry about running out of money to spend.
Who knows, in 2010 Walker had no choice but to declare bankruptcy and still owe $12.7 million.
These extravagant consumption habits, traced back to their roots, can also be seen as a backlash against a poor life.
Many players in the NBA, from poor families, have not had the correct view of consumption since childhood, and it is easy to lose themselves in the face of wealth.
Walker, for example, grew up in the slums, robbery, gambling, theft, etc., are some of the biggest memories of his childhood. So much so that when he was sitting on hundreds of millions of riches, the poverty of childhood intensified his desire to consume.
In addition to profligacy, career problems are also a major reason why player bankruptcies are not uncommon.
NBA players eat youth food, and once the peak period passes, the body's functions will gradually age.
For the team, such players are not a good investment target, they prefer promising, easy to change hands of young players.
According to statistics, the career of NBA players averages 4.8 years, and many players have no choice but to retire at a young age.
The average age of players on all teams in the NBA
After retiring, many players who were born poor, have no other strengths, and suddenly have no source of income.
Some retired players after bankruptcy want to return to the field, but it is only a luxury. After all, youth cannot be reversed, and the days of relying on the bottom of the body to take a huge salary are gone.
05
The more tossed, the faster bankruptcy
Under this one-on-one bankruptcy crisis, it is not that there are no players who want to ensure their life after retirement by investing in financial management.
But it often backfires and even speeds up the bankruptcy process.
After retiring from the military, Derek Coleman invested wildly in his hometown of Detroit, opened restaurants many times, and invested in the real estate industry, which ended abruptly.
After a meal, Coleman owed $4.7 million in debt and declared bankruptcy.
Walker also thought about investing, he bought more than 140 properties in south Chicago, only to encounter a real estate bubble and become a receiver.
Pippen, another retired player, is very self-aware of his investment ability, so he specially chose a financial institution to help him get some property.
As a result, Pippen never imagined that the financial institution he chose invested in some products that had no return on him at all, and let him lose $25 million.
In a fit of rage, Pippen took the agency to court, only to get back a few million dollars.
News reports about Pippen's deception
Why do these seemingly prescient players have a hard time dying?
One reason that cannot be ignored is that NBA players are used to making quick money, so when they invest, they also want to succeed quickly, and such a result can often only be deceived and become a leek.
In addition, the education of NBA players is generally not high, many of them are college dropouts, and some even live in slums for a long time, with a narrow vision, which can be described as a small white in investment and financial management.
It can be said that the life of profligate and drunken fans, blind hype, and the financial management method of only wanting to make quick money have been infinitely magnified under the unique mechanism of the NBA and the defects of the players themselves, which eventually led to a series of bankruptcies and life tragedies.
Another player in the NBA who went bankrupt after retiring, Latril, at the end of his career, turned down a three-year, $21 million contract and said amazingly: The money is not enough to support his family.
But what he didn't know was that for an average American to make enough $21 million, it would take five or six centuries.
If he had said so, the vast majority of Americans would have starved to death on the streets.
In the final analysis, the bankrupt players represented by Latrile still lack reverence for money. Without reverence for money, even if two more zeros are added to the salary, bankruptcy is sooner or later.
Once you lose the reverence for money, you are not far from losing it.
As the saying goes, easy come easy go.
Positive solution, a knowledgeable, in-depth, sincere financial situation of the times. Here, penetrate the fog of information, here, discover the real China. The director is a lover of various reports, collecting thousands of reports from various industries, paying attention to the key word "industry" in the reply of the Bureau, and obtaining the latest reports from multiple industries.