The new television contract the NBA has agreed to is driving the players’ salary cap through the ceiling. With $24 billion on the table, team owners now have $20 million to spend on their rosters. Take for example Timofey Mozgov, a centre who used to play with the Cavs and who had just signed up with the Lakers. The Russian 29-year-old is bound to receive $64 million through four years.
As NBA players continue to stack the Benjamins, they will continue to live a lifestyle of fame and fortune. Can you imagine how some players, given the millions they have earned, end up with nothing? Similar to a cautionary tale, there are several high-profile players who have risen to stardom only to wither their finances away.
Rapid Loans, an online provider of personal loans, gives financial advice on managing personal loan and finances. NBA players can learn from these tips, such as sorting out the basics and identifying what they can cut down on in expenditure. They further add how budgeting, and sticking to it, is important.
NBA Players and Their Cash Flow
Most NBA players aren’t exactly equipped with excellent business acumen, so there is a tendency for them to exhaust their finances. Antoine Walker, a former Celtic forward, concerns himself with teaching financial literacy — especially after he had gone through losing $108 million without him noticing.
Another example can be made of Allen Iverson. The 2001 MVP of the league has been the subject of headlines for years. After earning as much as $154.5 million in salaries alone, there have been rumours floating around how Iverson cannot even buy a cheeseburger these days. So, really, what is it with the life of an NBA player that they find it difficult to manage their money?
Kobe Bryant, the 2008 league MVP and Laker great, once bought a $4 million ring for his wife. In addition to this, he has three homes worth $18.8 million. He is one celebrity athlete who can definitely make it rain, but with the way he spends his dough, the question to ask is — until when?