NBA rookies and their millions

The 2018 NBA Draft Class had the most number of big men picked inside the top 10.  To be exact, five of them stand no lower than 6-10 with two other wing players at 6-7 and 6-9.  Slovenian shooting guard Luka Doncic is the lone international star on the top 10 and he stands 6-8.  This could be the return of the paint players that this old timer had missed.  I remember the eras of Kareem Abdul-Jabbar, Robert Parish, Arvidas Sabonis, Bill Walton, Bill Laimbeer, Patrick Ewing, Hakeem Olajuwon, Dikembe Motumbo, David Robinson and Shaquille O’Neal. 

These young players become instant millionaires with four-year rookie deals dropped on their laps.  The amount received by these top prospects is determined by the Collective Bargaining Agreement that was negotiated by the players’ union and league officials.  The salaries are limited by the scale amount set by the CBA and only first round picks are eligible for scale contracts.  Rookies can ask from 80% up to 120% of the scale amount and of course, majority opts for the latter.  The first two years of the rookie deal is guaranteed with a team option on the 3rd and 4th year.

The top 10 picks and their projected 2-year guaranteed rookie deals are:

#1    DeAndre Ayton, PHX, C, 7-0   $18 million

#2    Marvin Bagley, SAC, PF, 6-11   $16.2 million

#3    Luka Doncic, DAL, SG, 6-8   $14.5 million

#4    Jaren Jackson, MEM, PF, 6-11   $13.1 million

#5    Trae Young, ATL, PG, 6-2   $11.8 million

#6    Mohammed Bamba, ORL, C, 6-11   $9.1 million

#7    Wendall Carter, Jr., CHI, C, 6-10   $9.8 million

#8    Collin Sexton, CLE, PG, 6-2   $9 million

#9    Kevin Knox, NYK, SF, 6-9   $8.2 million

#10  Mikal Bridges, PHX, SF, 6-7   $7.6 million

One of only seven players who had played in the NBA for at least 20 years, 20-year veteran and 5th pick of 1998 Draft Class Vince Carter said that playing in the NBA is a job and they should treat it as such.  The 8-time All-Star and Slam Dunk champion also said these young players should make their families understand that what they’re into is work, not anything else and they have duties and responsibilities as an NBA player.

“These guys are about to walk into a great opportunity.  A lot of money and once their name is called, they change the lives of not only themselves but those of their families.  They have a tough responsibility as far as that too”, Carter said.

They will receive huge sums money most may not have imagined and they could not be financially savvy.   With the monetary abundance, many players have become irresponsible and had wasted away their millions thru ill-advised purchases like buying jet planes, luxury boat, mansions with a stable of expensive vehicles, gambling and other vices.  With the displayed wealth, two-timing creatures often take advantage of them.  According to data, 60% of NBA players are bankrupt within five years of their retirement.

Carter advised, “Put yourself in an allowance, which sounds crazy obviously but I think particularly in your first contract, you want to make sure you’re above water to even make it to your second contract where you can live comfortably, and a lot of these guys who are going to get drafted today are going to live comfortably obviously but you still need to save it.”

Well said, VC and he’s lucky that he had a sound financial adviser from the beginning as his mother was a business graduate.  Also, his long-time accountant constantly reminds him to be wise with his money saying, “Enjoy your life but being frugal is not a bad thing.”

Yes, careers as well as businesses, no matter how successful, always have the chance to take a downturn so it is always wise to prepare for any eventuality.  So NBA rookies, heed VC’s advise and save some of your millions.