First of all, congratulations on the new contract. We here at Kornfeld Financial wish you nothing but the best on your new career as a pro basketball player.
Having said that… I need to talk to you about your finances. Your rookie deal is standard structure: Two years at $3 million per year, with a $3.3 million dollar option in Year 3. Throw in your shoe deal for another million bucks per year, and I’m sure you’re seeing big green dollar signs every time you blink. But you need to be a little more careful with the spending.
First of all, a good 40% of all that money is going to Uncle Sam and the wonderful state of Georgia. We here at Kornfeld Financial have our ways around the tax code, but there’s only so much I can do without risking a three-year contract with a federal prison. Second, all that financial wrangling isn’t free. My work is very specialized so, of course, I take a very reasonable percentage of your income. But so do your agents, your manager, and that publicist you hired, and the private chef with the fancy French name.
And that’s just people you employ. Your credit card bill just came across my desk. Have you been to the mall every single day since you signed the deal? I understand you want to have fun, kid, but $50,000 on jewelry? TWO days in a row? And you bought a $25,000 4K television for your “man cave.” What the heck is 4K? How many K’s does a TV need?!
Your basketball career isn’t forever. You’ve got two years guaranteed, sure, but that third year is an option to buy. Just like you may ditch your new $300,000 Aston Martin after the lease ends, there’s no guarantee your team is going to want you back. Plan for the worst, hope for the best, and save money where you can.
For instance, the travel expenses are out of control. I know you’re too tall to fly coach, but three private jet rides a week is three too many. How about you try driving that new Aston Martin instead?
Cam, you don’t need three smartphones. I’ve got one phone and I’m doing just fine. And speaking of my phone, who is “M-Chuck” and why does she keep calling me? She told me you said she can “hold a little something” to buy groceries, and her definition of “a little something” is very different from mine.
Remember: A basketball career only lasts a few years. You’ll need this money for a lot longer than that. You haven’t even played your first game yet – no more 4K televisions until after the season.