Eric Murray

[Jeshurun]

Could it be both?

Impossible. Two things can never be true at the same time.

 

[NotAFanOfBecky]

I always wonder why athletes (MLB and NBA) do not request their pay in their contracts over more years? Instead of getting $7,000,000/year for 3 years. Why not take a $1,000,000 bonus now, and then $2,000,000/year for 10 years? The time value of money, can be calculated into their future pay. I know the NFL has limited their exposure to the guaranteed portion of the contract, but for other sports, I would rather have less money paid to me, over a longer number of years. It would greatly reduce the number of broke athletes that we now see, after their contracts expire.

The laws of compounding interest would diasagree with you. Get a good planner for half of what you get and "live" on the rest. You would be set and not having to worry about finances. I get what you're saying but with how NFL contracts are very few ave any guarantees.

 

[Spoofin]

I always wonder why athletes (MLB and NBA) do not request their pay in their contracts over more years? Instead of getting $7,000,000/year for 3 years. Why not take a $1,000,000 bonus now, and then $2,000,000/year for 10 years? The time value of money, can be calculated into their future pay. I know the NFL has limited their exposure to the guaranteed portion of the contract, but for other sports, I would rather have less money paid to me, over a longer number of years. It would greatly reduce the number of broke athletes that we now see, after their contracts expire.

If you win the Powerball are you choosing the annuity option?

 

[LakevilleBro]

If you win the Powerball are you choosing the annuity option?

Hi Spoofin, I like your question. The Lump-Sum payout is the best choice, for many different reasons. My original thought was why don't more (not all) athletes spread out their pay over a longer number of years. Pro careers probably average 3 or 4 years. A recent study showed 78% of NFL players, and 60% of NBA players, file bankruptcy within 5 years of retirement.