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Posted by Bigcatdaddy (Member # 21) on 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

Posted by Bama Cat (Member # 153) on 04-15-2025, 08:51 AM:

Makes sense. We could find out who is really playing because they love the sport. [Confused]

Posted by m hamilton (Member # 127) on 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.

Posted by Tiptree (Member # 844) on 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.

Posted by rlt4uk (Member # 3194) on 04-16-2025, 05:10 AM:

I bet 90% of them will be broke before they are thirty years old.

Posted by CatfanRick (Member # 126) on 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.

Posted by MEL (Member # 141) on 04-16-2025, 11:08 AM:

Tip ... how much would they have to pay in taxes on that 4 million ???

MEL

Posted by Bama Cat (Member # 153) on 04-16-2025, 09:38 PM:

I'm guessing about $1.6 M.

Posted by Tiptree (Member # 844) on 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 ]