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Athlete Millions: The Hidden Cost of Fame
10 Dec
Summary
- Large NFL contracts shrink significantly after taxes and expenses.
- Athletes face constant costs for housing, staff, and family.
- Financial literacy is crucial for athletes managing sudden wealth.
Odell Beckham Jr. and Carmelo Anthony have initiated a significant conversation regarding the true financial picture of nine-figure professional sports contracts. Beckham detailed how a supposed $100 million deal is substantially reduced by federal, state, and specialized taxes, leaving closer to $60 million in take-home pay. He explained that ongoing costs like housing, vehicles, training, and supporting family members rapidly deplete these earnings.
Carmelo Anthony echoed Beckham's sentiments, confirming the mathematical realities and lifestyle demands are considerable. He pointed out that agent fees, management costs, property investments, and maintaining a public image further erode athlete incomes. Anthony stressed the challenge of maintaining this lifestyle post-retirement when income ceases but expectations remain.
The core issue highlighted is the substantial portion of athlete earnings consumed by taxes and fees, potentially over 40 percent for top earners. Additional expenses for personal services, travel, and housing add millions. Both athletes underscore that financial planning and literacy are vital for athletes who must manage vast sums with little prior preparation.
