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| Hey Roger, do you think they can see my watch? |
Many times the banks will also give guys that are potential first round picks, loans of up to a half million dollars as long as the agent or the NFL can provide proof that the kid will be drafted. The worse thing that can happen to youngsters is for someone to give them credit because they'll charge to the limit not understanding how the game works.
I can remember being a broke college student and the banks would show up on campus and give out credit cards. It was like hitting the lottery because we would get approved and head straight to the mall. If the card had a $1000 limit we'd try to spend $1100 with no thought of how we would pay the bill. So many people are still making the minimum payment on those cards and will be paying them for the rest of their lives or they'll eventually start hiding from the creditors. Lack of self-discipline and maturity can be deadly to a person's financial health.
As I was watching the guys get drafted and go up to shake commissioner Roger Goodell's hand, all I saw was the bling from "Jacob the Jeweler" timepieces on their wrists. After all, they did spend the week in New York City. They're spending like we did at the mall but it's on a whole different level. I'm talking about being broke before the first check comes in.
If a kid signs a contract to make let's say $1 million per year that would sound like a lot of money. However, it really isn't when you start deducting the foolishness right off of the top. Uncle Sam is going to hit you for $400K right out of the gate. That leaves you with $600K for the rest of the year. You spent $100K on the draft night watch and ear rings. You bought the family and entourage new clothes and jewelry($100K) for the draft as well. Not to mention the Supercharged Range Rover($100K plus) loaded with all of the toys to push around campus or the crib before the draft. Oh yeah, you still have to pay the agent his 10 to 12%(another 100K or so) off of the million.
So the day after the draft you're down to less than $200K and you still haven't signed the contract that's supposed to be a million dollars per. Remember, this is the NFL, contracts aren't guaranteed like they are in the NBA. He may sign a deal for maybe $3 million/year but only $1 million is guaranteed. So that's why I settled on the example of a million dollars.
What happens if the deal swings a $100K in the wrong direction? You're really in trouble! Oh yeah bruh, you still have to find somewhere to live and pay for the up keep of the joint like paying for lights, gas, furniture, landscaping, property taxes etc. At some point you've got to eat, right? It's grown man business now!
That million dollars doesn't look all that attractive now does it? One thing I've learned about money during my lifetime is that it will only be loyal to the one that's holding on to it. Once you give it away it's gone. So my advice to you would be to wait until you sign the contract before you start looking for people to give it to. Money is like a woman, when you don't understand her you can't keep her. That's the X-factor! I hope these boyz don't clown at tonight's draft bruh but you know they will! One thing is guaranteed, Jacob has alright made his bread for the year on these cats!
Holla At Ya Boy!
Jay Graves
Follow me Twitter: @jaygravesreport
Jay,I know someone who was friends with Hunter Smith, the former punter for the Colts. As a punter he wasn't making 7 figures, but probably half a mil at least.the funny thing was he was living like he made 30,000 a year. He drove the same car he had in college and shared an apartment with a roommate that was about $500/month for rent. It's not how much you make, it's how much you spend. The overspending of the past decade---buying things we don't need with money we don't have to impress people we don't like has gotten us into one big debt problem
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