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Author
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Topic: NIL and retirement
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Bigcatdaddy
Player
Member # 21
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posted 04-15-2025 08:07 AM
Based on reports I've read online about the amount of money that some athletes are making, its feasible that they could retire after 4/5 years of college.
If you earn $3-4 million a year by the time you graduate you could have earned $12-16M (plus smaller endorsements)
How's that food for thought?
Just my $.02
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It's me, the cat.
Posts: 10350 | From: Macy, Ind. | Registered: Aug 1999
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Bama Cat
Player
Member # 153
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posted 04-15-2025 08:51 AM
Makes sense. We could find out who is really playing because they love the sport. ![[Confused]](confused.gif)
Posts: 14396 | From: berea, ky, usa | Registered: Sep 1999
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m hamilton
Player
Member # 127
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posted 04-15-2025 05:49 PM
I know I retired on a lot less than that. My needs may not be as great as theirs. I also guarantee my life expectancy isn't as theirs is either.
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The potus is planning 1st major tax hike since '93 in next economic package!
I still can't believe some people believed that LIAR!!!
Your whole life is determined(by) 10% what happens to you, and 90% how you handle it!!!
Posts: 128530 | From: vevay, IN USA | Registered: Sep 1999
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Tiptree
Administrator
Member # 844
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posted 04-15-2025 05:53 PM
Oh, that isn't even necesary. Let's say a fairly good player with ZERO NBA hopes can negotiate his way to $4M in 4 years. With just a modicum of self-control, he is set for life.
With a starting pile of $4M at age 24, he could draw about $160k "safely" each year to live off of (which will bump up each year for inflation), and then invest the rest in the market. That $4M will double about every 12 years.
at age 36, he will have $8M
At age 48 he will have $16M
At age 60 hw will have $32M
And all along he will have been drawing a very, very healthy allowance.
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Tiptree
“If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.” Thomas Jefferson
Posts: 13719 | From: Terre Haute, IN | Registered: Sep 2000
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rlt4uk
Player
Member # 3194
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posted 04-16-2025 05:10 AM
I bet 90% of them will be broke before they are thirty years old.
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Bleeding Blue in south Alabama. Kentucky born, Kentucky bred,I'll be kentucky until i'm dead!
Posts: 10098 | From: enterprise, al 36330 | Registered: Sep 2010
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CatfanRick
Administrator
Member # 126
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posted 04-16-2025 05:28 AM
One thing to remember here is that they may also obtain an education and create a network of contacts, not only in the athletic field but through other students and faculty and most important, boosters. If cultivated correctly this network could guarantee a live of endless possibilities for the player and maybe even his extended family.
What these players do with the money, education and network is up to them.
Posts: 7229 | From: Florence, Ky | Registered: Sep 1999
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MEL
Player
Member # 141
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posted 04-16-2025 11:08 AM
Tip ... how much would they have to pay in taxes on that 4 million ???
MEL
Posts: 2797 | From: Greeley, CO, USA | Registered: Sep 1999
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Bama Cat
Player
Member # 153
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posted 04-16-2025 09:38 PM
I'm guessing about $1.6 M.
Posts: 14396 | From: berea, ky, usa | Registered: Sep 1999
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Tiptree
Administrator
Member # 844
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posted 04-16-2025 09:42 PM
Good question, Mel.
In Kentucky, they would pay a little less than $400k combined federal and state taxes on $1M in income. So, let's redo the calculation:
After 4 years of $1M NIL income, they would have a paltry $2.4M stashed away. At a "safe" 4% withdrawal rate, the kid would start drawing $96K per year, indexed for inflation. Then, a similar doubling scheme would yield him a little under $20M when he reaches age 60.
I think he will be OK...
[ 04-16-2025, 09:43 PM: Message edited by: Tiptree ]
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Tiptree
“If a nation expects to be ignorant and free, in a state of civilization, it expects what never was and never will be.” Thomas Jefferson
Posts: 13719 | From: Terre Haute, IN | Registered: Sep 2000
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