We have all heard the story of the athlete going broke all too many times. From Antoine Walker to Philadelphia’s own Allen Iverson, it seems unfathomable to ordinary people that these players can lose all of their wealth.
The frontrunner for the 2013-14 Rookie of The Year award has taken his first steps to ensure he’s not the next in line. Michael Carter-Williams is set to earn $4.5 million over his first two NBA seasons. This figure rises to $10 million should the Philadelphia 76ers pick up his salary — which is a very high possibility.
For many young adults, that money would be a bad distraction. Cars, houses and jewelry are just three of the more common things that young athletes find themselves splashing out on.
Carter-Williams will not see a penny of the money he earns from directly playing basketball. Carter-Williams’ mother and her best friend, Tracie Tracy, are managing the player and have decided to put all of his rookie contract money into a trust fund that he can not touch for three years.
It is a very sensible and applaudable move from the rookie. Imagine the temptation to splash out after not only being drafted to an NBA team, but shining in your first few games. And it’s not as if Carter-Williams is too young to go out. Having his money put away should prevent the 22-year-old from racking up huge nightclub bills. Pay for everyone’s drinks after the max contract.
That doesn’t mean the former Syracuse point guard goes hungry and has no money to live on. He is currently living off his sponsorship money from Nike and Panini. And I can almost guarantee that his salary from those two corporations is much higher than the national average. So, it’s not really all bad for Carter-Williams.
Carter-Williams has gone about their finance the right way. Any player that plays in the NBA for just a few years has more than enough money to set themselves up for life, if managed correctly. Preserving and managing money as soon as you get into the league shows a level-headedness that sports athletes often don’t get credited for.