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But you know what's interesting.
We haven't spoken about this too much on Market Mondays, but it is a financial conversation. And I was at Saint John's yesterday, so Ian Jack, Captain Jack back home, so the ax, what's up?
You know?
He was somebody that actually was a five star recruit basketball and went to North Carolina and he's from the Bronx and he did one year at North Carolina and he's transferring it to Saint John's. The reason why I brought him up is that I'm at Saint John's yesterday I'm just looking at Saint John's, a beautiful campus in Queens, and I'm just thinking to myself, like, man, Captain Jack's coming to Saint John's for two million dollars.
They put two million dollars, gave him two million dollars in il deal.
I'm like, man, he's making more money anybody on the campus outside of Rick Patino.
That's crazy. Yeah, you know what I'm saying. That's great.
You got a nineteen year old sophomore that's coming on it, and I'm just looking at all of the prestigious buildings, all of the clergy everything, and like I said, I mean, ric Portino's making the most money. But after that, you got a nineteen year old. If he's not the second highest paid individual on campus, he's at he's at least ten.
So the next question that I have for that is for these kids that's getting nil money the fight, what financial steps should they be doing them and their parents to make sure that they're not blowing this bag.
Well, it's always percentages for me, So it'side the percentage of money. Like for him, specifically, you gotta put half of the money away because he's already lit like.
A lot of times index funds.
I would do half index funds and then probably have Microsoft and then Visa for sure. Of course Bitcoin if you can grape. But I think it's an easy win because especially just on Microsoft the loan, just on an open AI. Whether they choose to be bought out or they become public. I don't know if they'll allow that, but that probably I said at the top of the decade, it's gonna be I think stock of the decade, and
that's panning out to be true. So off, let's say if he put five hundred thousand into them, he's probably gonna make eight million dollars off of that, probably by year nine. Easy, easy win, regardless of what happens, whether he goes to the league, what his contract situation is. What I try and tell any player like, think of it as you get your same salary in the NBA
or NFL without having to play more years. So you'll spend five six hundred thousand on a woman down the line trying to get out of a situation, or you can put some of that capital in now and have it growth for you and you never have to worry about what's going on off the field. So yeah, I will put half away, so I will put a million away into I was split up between Microsoft, Voo, third Visa, fourth Bitcoin.
Let her run.
In nine years she should have eight or nine million dollars easily. And that's not even including the dividends. And don't give all your money away to women.
And that's and that's the thing too, because it's like this is an important conversation because you know, I'm into space. So what's happening now is that you have an agents that take their cut, but then there's like street agents. There was always street agents, but now there's street agents that's broken in il deals and they're taking anywhere from five to twenty percent of nil dealing. So parents, it's vitally important. Few things. It's a middle man is never
really needed. But if you do have a middle man, you got negotiate that contract to as low as possible and to the kids, because you've seen a lot of kids that's driving Lamborghinis and all of these cars on campus. Like you said, invest your money. You getting three million dollars, you buy a Lamborghini, that's five hundred thousand dollars, right, and you still got to pay taxes on the money.
Then like, so, I get it, you're eighteen, but like you said, if you put that money into an investment in a relatively short period of time, by the time
you twenty eight, not even thirty. By ti time you're twenty eight, you're going to have multiple millions of dollars where even if you don't make it into the league, you're still going to be a multi millionaire and you should be set for the rest of your life if done correctly, like this nil money is to the point now, like, if done correctly, but you don't even got to go to the league, you can be real for the rest of your life just based off of decisions that you
make from nil money when you're eighteen nineteen years old.
Yeah, and that helps go ahead.
I'm just saying, we got to take into account that he's not coming from like any school like he was at North Carolina where he had nil money as well. But there's a big difference in state tax when you leave from North Carolina to New York, especially when you're playing in New.
York City, and so.
Having somebody on your team like a CPA that can explain that to you, because yeah, it's a lot of money and this is a hometown kid. This is like you know what I mean, Like, I think the best advice on top of everything that you said is that you've got to realize everybody can't come with you on this journey.
And on top of that, there's a lot of conversations shouts to raping the sports on players and the owners one game at the time. Yeah, yeah, the politics of the business that you're in, the NBA, NFL, That's why the investment part is so important.
There's no reason because it's not talked about.
There is a system for you to get those big contracts and for people to steal that money away from you. And Duncan comes to mind. I'm glad glad KG recovered. Sebastian Tailfair comes to mind. Like there's a lot of people I've met that have made thirty and forty and they have two million left and everyone wants to blame it on the entourage. No one ever talks about the financial syndicate. That is a homourage that takes all the money away.
It's fact. That's a fact.
Everyone Like, yo, when if y'all qut the angling with twenty people, what about the twenty financial people that's on the team that is feeding you to death two to three percent of the time, two to three percent with twenty people adds up.
That is a fact. That's a fact.
And the thing about I'm gonna give you guys some game outside of the usual conversation that we speak about in market, mondays. Dea idea is a deferred income annuity. So if you're getting money, if you're getting a lump sum of money, especially when you're young, put a portion of that into a DEA because what that does is that grows over the course of time. Then you take
income from it. So like Alan Iverson right, everybody always talks about like his legendary deal that he did with Reebok and how he's going to be getting like I think next maybe he started this year when he turned fifty fifty, he'll probably be fifty soon, but whenever he turns fifty, he gets like a million dollars a year
for the rest of his life. That's because when he structured that the first deal, he had a good advice and somebody on it on the team that actually said, Okay, we're going to put a portion of this away into the decl You can't spend it, obviously, you know people, you know he had spending habits, so they it's forced savings that grew over the course of time. And now let's say you put a million dollars in and you wait till you're forty years old, that million dollars is
going to be ten millionion dollars right now. You can draw income off of that ten million for the rest of your life. Bobby Bonia, a lot of these sports contracts that lump sum was put into an annuity that grew over the course of time, tax deferred by the way, and then now that provides a lifetime income, and depending on what type of venuity it is, you can actually have some guarantees on it, so it's like an insurance based product, so it's not as risky as.
Just having it in the stock market.
So that's something that, like I said, if you wish, if you hit the lottery, if you have a lawsuit, if you again nil money, sports, any lump sum, any any type of thing where you get a lump sum at a relatively young age, I would definitely, at the very least look into it.
Educate yourself on a da d.
I, a deferred income annuity that you can put money into and you can draw income down a line.
Yeah, so Iverson is going to receive from his bout there eight hundred thousand dollars a year annually, and he will have access to thirty two million at fifty five. So he's forty nine now, so when he's fifty five, he'll have access to that thirty two million.
And then some people be like, well, I don't want I want my money right now.
It's a porch.
Like you gotta have portions. You gotta layer it, layer it, layer it out. Nobody's gonna be mad at saying, Okay, I got thirty million waiting for me in fifteen years.
Yeah.
Look, I mean a good case study with if you watch sports and study sports.
Look at what the Los Angeles Dodgers have done.
Yep, differring contract show heyl Tony deferred seven hundred, six hundred million, six hundred and fifty million deferred.
You gotta say, sometimes in life, you guys save people from themselves. I goess, for sure, disrespect to to Alan Ovison. He's one of the greatest that ever did it. But of course he has financial problems, right Like you go through a divorce and then you have issues that come and it's just like you're getting money at a young age. And sometimes as an advisor or as a parent, you have to save people from themselves, that's.
Important, or the team that is put around them to take all the money away. Like I would love to see from the time he was drafted in ninety six to when they went to the finals, what are the value of the seventy six is increasing?
And then how much he made in Jersey sales.
Because if I don't put a plan in place that and I allow you to go, everyone doesn't operator as a fiduciary. But there's a lot of teams that profit from the destruction of athlete.
Of course not talked about.
Yeah, and they're gonna leach off of them until it's the next athlete yep, and then rent to repeat year after year, decade after decade.
And then some more game for you is that if you have a business manager. So there's a few different things here. There's the agent who works out contracts stuff like that. Then there's a business manager who is actually more on the financial side. Right, the business manager, it would be better to have them on salary as opposed to them getting percentages of.
The percentage hell, hold on, say it again. That's the gym of the day.
I'm gonna save your.
Millions facts, you gotta put them on salary. And that's something that even Steve Harvey spoke about on his conversation with us, because you got especially in Hollywood. Now, going to Hollywood, you got an agent, you got a business manager, you got the talent manager, you got the financial advisor, the CPA, you got and all these people are taking percentages.
And it might it might seem small, four percent, five percent, it adds up, especially you're geting millions of dollars like you, Before you know it, thirty five percent is out the door.
That's before taxes. Now you got to take access.
So now you you've giving away sixty seventy percent of your money. Now you understand why people can actually go broke. Thirty percent of your money is going to tax. Thirty five percent your money is going to taxes. Then you got thirty percent going into all of these other people that I just named. Then we're not even talking about all of the lifestyle as far as you know, your cars, your house, then you got you know, child support, you
got all of these things. Now before you know it, you're in the red, so you may not have your IP exactly. So it's better than a lot if you can put people on salary because then also when you put them on salary is tax. It's tax deductible for you because you're paying make sure that they fill out there there w nine forms right now you're paying them as a employee, independent contractor however you set it up. But now that's that's tax deductible to you as a
business entity. Set up, set up your business entity, your LLC, your escort, your C corp. You know you gotta do it. You just can't go into this just thinking that you just talent. That's how you're gonna get taken advantage of everything.
Yeah, and money master of the game. One of the things that UH had a great impact on me was the fee structure that if you have other people invest for you, right, but no one talks about it on the talent or entertainment side of business side, Like I am great point where shot made to put everybody on salary because even if you're starting out as they begin an entrepreneur and you're saying, hey, do this business with me, you get fifty percent.
I get fifty percent it's a recipe for disaster.
You have to count up all the fees and percentages that you're paying in if you're an artist to a manager. And then also too like even let's say for us, you may have to enter a deal with somebody, then they don't even want to give you your data, like it's theft across the board. And then they'll say, well, you're tough to work with. No, I don't want to be robbed. No, you're gonna take twenty percent and I don't get my data, and no, then you're gonna cross collateralize what I built
with something. Be mindful because you'll look up in ten to fifteen years and you'll be paying twenty or thirty different people a bunch of percentages. And if you're averaging twelve or fifteen percent return, you're in the negative.
So but that's all I got to say about You haven't that's a that's a million dollars a game for.
You for sure.
And breaking news last night, the Japanese Prime Minister Eashiba says Japan's financial situation is worse than the Greece situation.
Very the Greek situation from to oh wow.
Yes, No, one's saying a word, wow, there's things on a chessboard financially worldwide. I forgot who said it, but that was like for all parties involved, India, the United States, China, it is best for us to all get along because the real world war is going to be like the collapse that happens in all of the markets. If we don't find a way to get along. We need each other and I like each other. Can we all just get along for real? Reginald Denny said that no, that
King rest in peace. That's the peace around the carea.
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