How to make $154 million and go broke: By Allen Iverson

[Locke]

Originally Posted by puckluck

I'm kinda curious to what people mean by "under-educated"? don't most NBA players have at least a High School education? They aren't any less educated than NHL players yet you hear the "under-educated" tag thrown around NBA players.

You don't have to be a Harvard grad to know how to not blow $154 million dollars.

FTR Iverson did go to University.

I was using a generalization, and the 'under-educated' athlete is a stereotype that is rapidly being outgrown. Theres a lot more to it, just because someone goes to University or High School doesnt make them any more suited to handle certain matters of everyday life.

[Ozy_Flame]

Here's the way I see it: The only thing you need expensive jewelry for is to look good, which is usually a vice to get laid by hot women. Does it take $860,000 worth of bling to get laid? No.

Therefore, I have no sympathy for him. That is just outrageous, in addition to the number of other high-priced crap I'm sure he bought.

[pylon]

Originally Posted by valo403

And of course all black NBA players are thugs and gangsters

There are definitely a few guys like that, but they're a minority. Coming from a poor background doesn't equal thug/gangster.

I am not saying they are all thugs and gangsters. But the hip hop/rap culture, whatever it is called.... that these predominantly appeal to and grew up with, is all about bling. It's not like the majority of NBA players are rubbing shoulders with Neil Diamond and Kenny G.

[kirant]

Originally Posted by pylon

I have read that something like 65% of NBA players file for bankruptcy within 3 years of retirement. Staggering numbers.

This article doesn't give any support to its number, but it seems to agree with the statistic (and pegs it at 60%)
http://www.thestar.com/Sports/article/299119

[puckluck]

Originally Posted by Locke

Theres a lot more to it, just because someone goes to University or High School doesnt make them any more suited to handle certain matters of everyday life.

Exactly. There is not just one type of "smart", some of the richest people I know don't have a grade 6 education and are doing quite well for themselves handling a lot of money.

[valo403]

Originally Posted by pylon

I am not saying they are all thugs and gangsters. But the hip hop/rap culture, whatever it is called.... that these predominantly appeal to and grew up with, is all about bling. It's not like the majority of NBA players are rubbing shoulders with Neil Diamond and Kenny G.

And I suppose that if you grew up listening to Motley Crue it would be accurate to say that your lifestyle mirrors what they did??

[pylon]

Originally Posted by valo403

And I suppose that if you grew up listening to Motley Crue it would be accurate to say that your lifestyle mirrors what they did??

Yes. Exactly.

[Cowperson]

Originally Posted by puckluck

http://www.thepostgame.com/blog/dish...financial-woes



How does someone make so much money and go broke at such a young age? Kind of sad to see, but damn he's stupid.

I guess he should have practiced saving up his money.

I know several individuals who've made a few million, lost it all and then went out and made several million a second time.

They're amazing, all personality and usually risk-taking entrepreneurs.

Cowperson..

[darklord700]

$154 millions aint what it used to be. To be fair, after 50% income tax and a couple percentages to the agent, you're left with about $75 millions of disposable income. For AI that's about $5M-$8M a year throughout his career.

While it's still a lot, it's only about $500K a month or so. Can you blow $500K a month? It's not impossible considering the lifestyle these guys were used to having.

[valo403]

Originally Posted by pylon

Yes. Exactly.

Can I come to your parties??

[Locke]

Originally Posted by puckluck

Exactly. There is not just one type of "smart", some of the richest people I know don't have a grade 6 education and are doing quite well for themselves handling a lot of money.

Precisely, I went to University, and I'm an accountant I handle money all the time, I dont handle my own investments.

[Julio]

I love what one college coach (maybe Bobby Knight...of that era anyways) told his players, at a time when they were making a lot less.

80% of your net is for you...do whatever you want with it, but invest some of it.

10% is for your kids. Put it somewhere you can't get at it, so that they can reap the rewards of your good fortune/hard work.

10% is for future you. Put it somewhere you can't get at it, and have it pay an annuity or something similar, so that you can live after you are done playing sports.

[nik-]

Originally Posted by puckluck

I'm kinda curious to what people mean by "under-educated"? don't most NBA players have at least a High School education? They aren't any less educated than NHL players yet you hear the "under-educated" tag thrown around NBA players.

You don't have to be a Harvard grad to know how to not blow $154 million dollars.

FTR Iverson did go to University.

Hockey Players going pro with High School education, Basketball players doing 1 or 2 years of University and Football players riding a scholarship while taking "Communications" are under-educated and not prepared to handle the money. The evidence of this is staggering.

I didn't limit my statement to the NBA, you assumed.

[Hilch]

Originally Posted by puckluck

I'm kinda curious to what people mean by "under-educated"? don't most NBA players have at least a High School education? They aren't any less educated than NHL players yet you hear the "under-educated" tag thrown around NBA players.

You don't have to be a Harvard grad to know how to not blow $154 million dollars.

FTR Iverson did go to University.

Couple things...First, I would say that hockey players usually come from better backgrounds and upbringings which usually means better financial support and understanding of money at a younger age. Iverson was also in jail before he even got out of high school.

Second, I would argue that hockey players in the CHL are not treated the same way a basketball or football high school stars in the states are treated. Most schools would do anything to have the best players on their teams, some of those things mean giving better grades than they might get if they were just some kid in the class. It's big business down there unlike the CHL which seems to put more focus on actual education.

Just because Iverson went to college doesn't mean he learned anything or even wanted to. What exactly did he take in school anyways? But when you know you are projected to be a top pick making millions of dollars plus his $50,000,000 Reebok deal you might not care about your classes.

The NBA should do a better job of protecting their players and making sure this doesn't happen but neither their employer or union seems to care besides holding some class before each draft. They need to do more to protect these kids from themselves IMO.

[puckluck]

Originally Posted by nik-

Hockey Players going pro with High School education, Basketball players doing 1 or 2 years of University and Football players riding a scholarship while taking "Communications" are under-educated and not prepared to handle the money. The evidence of this is staggering.

I didn't limit my statement to the NBA, you assumed.

You assumed I was just talking to you. The argument of NBA players being stupid with their money because they are uneducated isn't something new.

[pylon]

Originally Posted by nik-

Hockey Players going pro with High School education, Basketball players doing 1 or 2 years of University and Football players riding a scholarship while taking "Communications" are under-educated and not prepared to handle the money. The evidence of this is staggering.

I didn't limit my statement to the NBA, you assumed.

I have dealt with quite a few current and ex NHLers over the years. And the majority of them are staggeringly frugal.

Without naming names, I had one, that was paying himself 250k/yr and putting every single other penny he earned into long term retirement investments. And this was a guy well into 7 figures, buying a car for his nanny to drive around in. He wanted to take advantage of the 0% and decided to finance so he could save $3200 in interest. Which worked out to like 3 shifts or something like that...lol.

I found it quite shocking that he would do that, and just started asking talking to him about things, and he said there are a ton of NHL players that live very cheap simple lifestyles.

[octothorp]

It's not just the bling lifestyle (although in Iverson's case and a lot of others, it almost certainly was), and it's not just black athletes. There are a lot of guys who look at the example of Jordan and Magic, and think they have what it takes to build a business empire. Meanwhile, everyone around them is telling them about sure-fire, can't miss investments.

Lots of guys invested too heavily in real-estate... I recall reading that Canseco ended up broke in part as a result of awful real-estate investments. Lenny Dykstra founded a magazine and got tens-of-millions in the hole as a result. Maddox, Damon, Pena, and a lot of others got roped into ponzi schemes. The NFL at one point said that its players lost something like $50 million over a three year period as a result of investing money with questionable financial advisers. Even presumably smart guys like Drew Bledsoe have invested in high-tech companies that have gone belly-up.

It's almost a self-perpetuating condition: guy sees all these other athletes he knows going broke, thinks to himself 'jeez, I need to invest my money to protect it.' He attempts to do it himself or trusts the wrong guy, and ends up being the next broke athlete headline.

[valo403]

Originally Posted by Hilch

Couple things...First, I would say that hockey players usually come from better backgrounds and upbringings which usually means better financial support and understanding of money at a younger age. Iverson was also in jail before he even got out of high school.

Second, I would argue that hockey players in the CHL are not treated the same way a basketball or football high school stars in the states are treated. Most schools would do anything to have the best players on their teams, some of those things mean giving better grades than they might get if they were just some kid in the class. It's big business down there unlike the CHL which seems to put more focus on actual education.

Just because Iverson went to college doesn't mean he learned anything or even wanted to. What exactly did he take in school anyways? But when you know you are projected to be a top pick making millions of dollars plus his $50,000,000 Reebok deal you might not care about your classes.

The NBA should do a better job of protecting their players and making sure this doesn't happen but neither their employer or union seems to care besides holding some class before each draft. They need to do more to protect these kids from themselves IMO.

You're right, hockey certainly isn't big business in Canada

[DementedReality]

Originally Posted by pylon

...are staggeringly frugal.

...that was paying himself 250k/yr live very cheap simple lifestyles.

yup, you can live a very cheap, simple and frugal lifestyle on 250k per year. especially if you dont need to account for retirement or taxes from that 250k.

bring on the frugal life for me. please?

[JiriHrdina]

I don't know what kind of investments AI was into but one way to blow a load of cash is in some bad business ventures. If you get caught in the wrong type of business and if you are expected to be the one providing cash flow it can get away from you in a hurry.

Basically the same way that some lotto winners lose their winnings in a matter of 10 year or less.